Settlement of claim where liability disputed
32AC Settlement of claim where liability disputed
A party to a death benefit dispute may lodge with the Commission a proposed agreement for an amount to be paid in settlement of the part of the claim that relates to the lump sum death benefit under Division 1.
The amount proposed to be paid in settlement must not be more than the amount of the lump sum death benefit otherwise payable under Division 1.
The parties to the agreement must include the insurer and—
each dependant of the deceased person, or
if there are no dependants—the legal personal representative of the deceased person.
The Commission must not entertain proceedings to give effect to the agreement unless satisfied—
there is a reasonable basis for the insurer to dispute liability for the death benefit compensation, and
the amount of compensation proposed to be paid in settlement of the claim is reasonable in the circumstances, and
each dependant of the deceased person is a party to the agreement or, if the Commission is satisfied there are no dependants, the legal personal representative of the deceased person is a party to the agreement.
For subsection (4)(a), there is a reasonable basis for an insurer to dispute liability only if the dispute is based on—
facts provable on the material available to the Commission, and
a reasonably arguable view of the law.
In proceedings for the death benefit dispute, each party to the agreement must be represented by an Australian legal practitioner unless otherwise directed by the Commission.
If the Commission makes a determination to give effect to an agreement under this division—
the insurer is taken to have accepted liability for death benefit compensation for the death, and
subject to paragraph (c), death benefit compensation is payable in accordance with Division 1 as if the death had resulted from an injury, and
the amount of lump sum death benefit payable under section 25 is the amount provided by the agreement as executed.
The Workers Compensation Guidelines may make provision in relation to the management of a claim to which an agreement under this division relates.
The Commission rules and procedural directions may provide for matters relating to—
applications under this section, and
the procedure for making a determination to give effect to an agreement under this division.
This Act’s bill:Explanatory memorandum
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