NATIONAL DISABILITY INSURANCE SCHEME ACT 2013 - SECT 114 Offence--making compensation payment after receiving preliminary notice or recovery notice

NATIONAL DISABILITY INSURANCE SCHEME ACT 2013 - SECT 114

  (1)   A person (the potential compensation payer ) commits an offence if:

  (a)   the potential compensation payer has been given a notice under subsection   109(1) or 111(1) in relation to the payment of compensation to a participant or prospective participant; and

  (b)   the potential compensation payer makes the compensation payment to the participant or prospective participant.

Penalty:   Imprisonment for 12 months or 60 penalty units, or both.

Note:   If a body corporate is convicted of an offence against this section, subsection   4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the pecuniary penalty stated above.

  (2)   Subsection   (1) does not apply if:

  (a)   in the case of a notice under section   109--the CEO has given the potential compensation payer written notice that the notice is revoked; or

  (b)   in the case of a notice under section   111--the potential compensation payer has paid to the Agency the amount specified in the notice; or

  (c)   the CEO has given the potential compensation payer written permission to pay the amount.

  (3)   An insurer commits an offence if:

  (a)   the insurer has been given a notice under subsection   109(2) or 111(2) in relation to a liability to indemnify a person; and

  (b)   the insurer makes a payment in relation to that liability.

Penalty:   Imprisonment for 12 months or 60 penalty units, or both.

Note:   If a body corporate is convicted of an offence against this section, subsection   4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the pecuniary penalty stated above.

  (4)   Subsection   (3) does not apply if:

  (a)   in the case of a notice under section   109--the CEO has given the insurer written notice that the notice is revoked; or

  (b)   in the case of a notice under section   111--the insurer has paid to the Agency the amount specified in the notice; or

  (c)   the CEO has given the insurer written permission to pay the amount.