Offence—making compensation payment after receiving preliminary notice or recovery notice
114 Offence—making compensation payment after receiving preliminary notice or recovery notice
A person (the potential compensation payer) commits an offence if:
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
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.
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.
Subsection (1) does not apply if:
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
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
the CEO has given the potential compensation payer written permission to pay the amount.
An insurer commits an offence if:
the insurer has been given a notice under subsection 109(2) or 111(2) in relation to a liability to indemnify a person; and
the insurer makes a payment in relation to that liability.
Penalty: Imprisonment for 12 months or 60 penalty units, or both.
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.
Subsection (3) does not apply if:
in the case of a notice under section 109—the CEO has given the insurer written notice that the notice is revoked; or
in the case of a notice under section 111—the insurer has paid to the Agency the amount specified in the notice; or
the CEO has given the insurer written permission to pay the amount.
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