Section 110 — National Disability Insurance Scheme Act 2013: Offence—potential compensation payer or insurer

(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.