NATIONAL DISABILITY INSURANCE SCHEME ACT 2013 (NO. 20, 2013) - SECT 110 Offence--potential compensation payer or insurer

NATIONAL DISABILITY INSURANCE SCHEME ACT 2013 (NO. 20, 2013) - SECT 110

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

                     (a)  the potential compensation payer is given a notice under subsection 109(1) in relation to a participant or prospective participant; and

                     (b)  before or after receiving the notice, the potential compensation payer becomes liable to pay compensation to the participant or prospective participant; and

                     (c)  the potential compensation payer does not give written notice to the CEO of the liability within 7 days after becoming liable or receiving the notice, whichever is later.

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)  An insurer commits an offence if:

                     (a)  the insurer is given a notice under subsection 109(2) in relation to a claim by a participant or prospective participant; and

                     (b) before or after receiving the notice, the insurer becomes liable to indemnify the potential compensation payer, either wholly or partly, in relation to the claim; and

                     (c)  the insurer does not give written notice to the CEO of the liability within 7 days of becoming liable or receiving the notice, whichever is later.

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.