Section 112 — National Disability Insurance Scheme Act 2013: Preliminary notice or recovery notice suspends liability to pay compensation

(1) If a person (the compensation payer) has been given a notice under subsection 109(1) or 111(1) in relation to the compensation payer’s liability, or possible liability, to pay compensation, the compensation payer is not liable to pay that compensation while the notice has effect. (2) If an insurer has been given a notice under subsection 109(2) or 111(2) in relation to the insurer’s liability, or possible liability, to indemnify a compensation payer against a liability arising from a claim for compensation: (a) the insurer is not liable to so indemnify the compensation payer; and (b) the compensation payer is not liable to pay that compensation; while the notice has effect.