As many readers of this will know the Road Traffic (NHS Charges)
Act 1999 means that compensators who agree to pay compensation for
injuries suffered by another person in a road traffic accident are
obliged to meet the cost of any necessary NHS hospital treatment
received by the injured person up to a fixed ceiling per claim.
This scheme is currently administered by the Compensation Recovery
Unit who also administer the scheme for recovery of state
benefits.
It has long been anticipated that the scheme would be extended
to cover all personal injury cases. Originally it was anticipated
the scheme would be extended from 1st April 2005, although that
date was subsequently postponed. The Compensation Recovery Unit
have this week issued guidance advising that subject to
parliamentary approval of the regulations to support the
legislative framework, the extended scheme is due to commence on
29th January 2007, for all accidents occurring on or after that
date. For cases involving accidents before that date it is
envisaged the existing system will still apply.
The intention is that the scheme will operate as far as possible
in the same way as the current road traffic scheme. The enabling
legislation will be the Health and Social Care (Community Health
and Standards) Act 2003, with supporting regulations being enacted
by both the English and Scottish Parliaments for their respective
jurisdictions.
There are however several changes that should be noted.
Contributory negligence can be taken into account in cases where
it is a factor in a primary compensation claim. The regulations
will set out the evidence compensators need to provide to show all
parties to the compensation claim have reached an agreement on
contributory negligence. For example, if it is agreed that a
Claimant was 50% to blame for an accident then the compensator
would only be responsible for 50% of the NHS Charges.
NHS motor ambulance charges can be collected for the first time.
There will be a standard charge per journey that has not yet been
specified.
Compensators will be able to apply for a waiver on grounds of
excessive hardship.
The new legislation will apply to all compensators.
The new scheme will extend to include foreign compensators and
accidents abroad providing NHS treatment is provided in either
England, Scotland or Wales.
NHS Trusts and Boards who are also the compensator will be
exempt from repaying their own NHS Charges. However they will be
liable to repay any other NHS Trusts up to the maximum amount.
Registration of claims will be made by way of form CRU1 in the
usual fashion. This can be found on-line at www.dwp.gov.uk/cru/notification.pdf.
The NHS Charges will be capped with a yearly scale being
provided. The present ceiling (which applies to road traffic cases
only) is £37,100 for accidents occurring on or after 1st April
2006. No figures are yet available for 2007. It is envisaged that
certificates of NHS Charges will be issued along with Certificates
of Recoverable Benefits as presently happens in just road traffic
cases. Provision will be made for review and appeal rights in the
same way as presently exists.
The DWP have helpfully provided the following contact details
for any specific queries that compensators may have in the
meantime.
DWP Contact: Steve Dibdin NHS Costs Recovery, Room 4W04, Quarry
House, Quarry Hill, LEEDS LS7 2UE Tel: 0113 254 5819? Fax: 0113 254
7350 Email: steve.dibdin@dh.gsi.gov.uk
We will issue a further update in the New Year to confirm if the
regulations have been passed to enable the scheme to commence on
29th January 2007. However in the meantime we would encourage all
those concerned to make allowance for the apparently imminent
inclusion of NHS charges in all personal injury cases. For payment
of compensation arising out of accidents from 29th January 2007
onwards compensators should also consider recording any agreement
on contributory negligence, thereby limiting exposure to NHS
Charges.
Ranald Macpherson / Bruce Goodbrand