Section 197 — Social Security Act 2018: Effect of compensation or damages on application for benefit

197 Effect of compensation or damages on application for benefit (1) This section applies if— (a) a person ( P ) applies for a benefit; and (b) P has been paid or has a claim for compensation or damages from any other person in respect of— (i) any disability caused by accident or disease; or (ii) wrongful or unjustifiable dismissal. (2) If P has been paid compensation or damages, MSD may refuse the benefit or grant a reduced benefit for the period of disability or loss of expectation of employment for which the compensation or damages have been paid or deemed by MSD to have been paid. (3) If P has a claim for compensation or damages, MSD may grant the benefit on the condition that MSD may require P to repay MSD all or part of the benefit out of the compensation or damages that are paid to P as a result of the claim. (4) If a benefit or part of a benefit is granted on the condition set out in subsection (3), the benefit or the part of it— (a) constitutes a charge on the compensation or damages; and (b) is a debt due to the Crown under regulations made under section 444 from the beneficiary or any person liable for the payment of the compensation or damages; and (c) is subject to recovery under regulations made under section 444 from the beneficiary or any person liable for the payment of the compensation or damages. (5) In this section, compensation or damages — (a) includes any ex gratia payment made in settlement or on account of a claim for compensation or damages; but (b) does not include any impairment lump sum received under Schedule 1 of the Accident Compensation Act 2001. Compare: 1964 No 136 s 71