HC Deb 26 April 1989 vol 151 cc1048-50

Amendments made: No. 55, in page 30, leave out line 38.

No. 89, in page 33, line 18, at end insert—

'Structured settlements 6A.—(1) This paragraph applies where—

  1. (a) in final settlement of a person's claim, an agreement is entered into—
    1. (i) for the making of periodical payments (whether of an income or capital nature) to or in respect of the victim; or
    2. (ii) for the making of such payments and one or more lump sum payments; and
  2. (b) apart from this paragraph, those payments would fall to be regarded for the purposes of the recoupment provisions as compensation payments.

(2) Where this paragraph applies, the recoupment provisions (other than this paragraph) shall have effect on the following assumptions, that is to say—

  1. (a) the relevant period in the case of the compensator in question shall be taken to end (if it has not previously done so) on the day of settlement;
  2. (b) the compensator in question shall be taken—
    1. (i) to have been liable to make on that day a single compensation payment of the amount referred to in section 19(1)(a) of this Act (reduced or increased in accordance with such of the recoupment provisions as would have applied in the case of a payment on that day); and
    2. (ii) to have made from that single payment a relevant deduction of an amount equal to it; and
  3. (c) the payments under the agreement referred to in sub-paragraph (1) above that shall be taken to be exempt payments.

(3) The intended recipient shall not by virtue of anything in this paragraph become entitled to be paid any sum, whether by the compensator or the Secretary of State, and if on a review or appeal under paragraph 15 or 17 below it appears that the amount paid by a compensator in pursuance of this paragraph either exceeded or was less than it ought to have been, then—

  1. (a) any excess shall be repaid to the compensator instead of to the intended recipient; but
  2. (b) any deficiency shall be paid to the Secretary of State by the intended recipient.

(4) Where any further compensation payment falls to be made to or in respect of the victim otherwise than under the agreement in question, sub-paragraph (2)(a) above shall be disregarded for the purpose of determining the end of the relevant period in relation to that further payment. (5) In any case where—

  1. (a) the person making the periodical payments (the "secondary party") does so in pursuance of arrangements entered into with another (as in a case where an insurance company purchases an annuity for the victim from another such company), and
    2. 1049
  2. (b) apart from those arrangements, that other ("the primary party") would have been regarded as the compensator,
then for the purposes of the recoupment provisions, the primary party shall be regarded as the compensator and the secondary party shall not be so regarded.

(6) In determining for the purposes of this paragraph whether any periodical payments would fall to be regarded as compensation payments, section 19(4)(a) of this Act shall be disregarded.

(7) In this paragraph "the day of settlement" means—

  1. (a) if the agreement referred to in sub-paragraph (1) above is approved by a court, the day on which that approval is given; and
  2. (b) in any other case, the day on which that agreement is entered into.'.

No. 92, in page 34, line 21, leave out 'deduction from, or payment out of,' and insert `relevant deduction or payment in connection with'.

No. 93, in page 34, line 27, leave out 'withhold from the' and insert 'either— (i) withhold from such a'.

No. 94, in page 34, line 28, leave out 'and' and insert `or (ii) make such a payment into court before the certificate of total benefit has been issued to him; and'.

No. 95, in page 34, line 32, after 'person,' insert 'making a payment into court'.

No. 96, in page 34, line 33, leave out '(2)(a) above, he shall' and insert `(2)(a)(i) above— (a) he shall, at the time when he makes that payment,'.

No. 97, in page 34, line 34, after 'and', insert `(b)'.

No. 98, in page 34, leave out lines 36 and 37 and— `but no person shall be entitled by virtue of this sub-paragraph to the payment out of court of any amount which has not in fact been paid into court. (3A) Where a payment into court is made as mentioned in sub-paragraph (2)(a)(ii) above, the compensator—

  1. (a) shall apply for the certificate of total benefit no later than the day on which the payment into court is made; and
  2. (b) shall become liable to make the relevant payment as mentioned in sub-paragraph (2)(b) above, notwithstanding that the relevant deduction has not been made.
(3B) Where any such payment into court as is mentioned in sub-paragraph (2) above is paid out of court to or for the other party to the action within the initial period, then, as respects the compensator in question, the relevant period whall be taken to have ended on the day on which the payment into court was made. (3C) In sub-paragraph (3B) above "the initial period" means the period of 21 days following the making of the payment into court, but rules of court may make provision varying the length of that period. (3D) Rules of court may make provision regulating or prescribing the practice and procedure to be followed in relation to such payments into court as are mentioned in sub-paragraph (2) above.'.

No. 28, in page 35, line 18, leave out 'requests the Secretary of State to furnish him with' and insert `applies to the Secretary of State in accordance with paragraph 3 above for'.

No. 29, in page 35, line 20, leave out 'comply with that request' and insert `furnish him with such a certificate'.

No. 30, in page 35, line 22, leave out 'request' and insert 'application'.

No. 31, in page 35, line 26, leave out 'request' and insert 'application'.

No. 32, in page 35, line 36, leave out 'the relevant'.

No. 12, in page 37, line 8, after '1981', insert 'or section 12 of the Administration of Justice Act 1982'.

No. 33, in page 38, line 15, leave out 'the victim' and insert 'a person'.

No. 34, in page 38, line 17, leave out 'the victim' and insert 'a person'.

No. 90, in page 38, line 44, leave out 'the amount so certified' and insert 'that relevant payment'.

No. 91, in page 40, line 21, after 'Where', insert immediately before the making of the compensation payment,'.

No. 13, in page 41, line 2, at end insert—

'Modification of Bankruptcy (Scotland) Act 1985 22. In section 31 of the Bankruptcy (Scotland) Act 1985 (vesting of debtor's estate at date of sequestration) in subsection (8) after the words "subsection (9) below" there shall be inserted the words "and to paragraph 7(2) of Schedule 3 to the Social Security Act 1989.".'. —[Mr. Peter Lloyd.]

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