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9.2 Life Insurance Policies


Insurance on the life of the deceased employee is a private financial/commercial arrangement and an amount specified by an insurance policy and paid to a dependant does not have any effect on the compensation entitlement under any of the Commonwealth Acts administered by the Department.


No limitation should be made to compensation entitlements in respect of payments received by a dependant, as prescribed by an insurance policy.


In cases where the insurance company subsequently institutes a legal action in the dependant's name – i.e. to recover damages either from a third party deemed liable for the death (or, indeed from the Commonwealth itself) – Delegates should take an interest in those proceedings. Section 48 requires that the Commonwealth recover:

a)the compensation entitlement OR

b)the amount of damages recovered at law,

whichever is the lesser. Read 9.3 and/or 9.4 below for further information relating to this circumstance.