compensation recovery

compensation recovery
the clawback by a government agency of a proportion or all of the damages awarded or agreed to be paid to a person in respect of certain state benefits obtained by that person in consequence of an accident, injury or disease. In principle, this is a reasonable scheme. It was introduced in the UK by the Social Security Act 1989. It stops double compensation, with the state and insurers, their shareholders and premium-payers overpaying. For a time the state took recovery even from damages for pain and suffering, but the position now is that there is no recovery from such damages. Recovery is effected by the Compensation Recovery Unit (CRU) and is governed by complex rules. Recovery is made from the compensator (the person making the compensation) but the compensator takes account of this in negotiating any settlement.

Collins dictionary of law. . 2001.

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