Section 114 — National Disability Insurance Scheme Act 2013: Offence—making compensation payment after receiving preliminary notice or recovery notice

(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.