Section 51 establishes a process where overpayments may be avoided.
It empowers Comcare to request a third party, who is liable or who has agreed to pay damages to an employee for injury or loss, and for which compensation is payable, to pay those damages direct to Comcare rather than to the employee.
Section 51 uses the term 'person'. However, the Act specifically excludes the Commonwealth as being a 'person'. This means where 'person' is specified in section 51, it relates to a “third party” only.
The section provides that the amount of damages to be paid equates with damages payable under section 48 or 59 - but direct to Comcare.
In some instances, where an employee has sustained an injury in a motor vehicle accident involving a third party, Comcare may, under section 51 (1), approach the third party or insurer for direct payment, before any agreement has been reached to pay damages or before damages have been awarded.
However, there may be other circumstances where a third party has already paid part or all of a damages claim to the employee. In this case, the provisions of section 51 cannot apply.