DGB Ssolicitors

Top Tips on CRU Recovery

Following our successful seminar in London we have been asked to post a précis of the points that we

highlighted relating to the recovery of benefits and NHS charges by the CRU.

Since 1 January 2007 the CRU has been able to recover the costs of treatment received by claimants arising from Employer’s Liability and Public Liability accidents. 

Each year, the CRU publishes the new levels of repayable charges and from 1 April 2010, the following will apply :-

NHS Treatment and Ambulance Journey Charge

As can be seen, the capped amount has increased from nil pre- July 1997 to nearly £43,000 in April 2010. 

It must be remembered that NHS Charges are payable in addition to any repayable CRU benefits. 

In the current litigation climate, insurers are often tempted to make a nuisance value offer to claimants to “buy off” claims at an early stage.  No matter what level of settlement, recoverable NHS charges and repayable benefits will still need to be paid. Given the significant impact on the ultimate amount paid by defendants/their insurers, these charges must be considered prior to entering into any settlement negotiations.  

Interim payments will also trigger the repayment of NHS Charges and recoverable benefits. Care must be taken when identifying the level of interim payment. 

When considering your reserve, make sure that you include an element in respect of likely NHS Charges and Recoverable Benefits.   

On the plus side, the CRU will take into account when considering NHS Charges recovery a deduction in respect of any contributory negligence agreed between the parties.  In support, the defendant/insurer must supply the following evidence to the CRU:

1. A statement of the proportion by which the damages payable in respect of the claim are to be reduced, to reflect the injured person’s share in the responsibility for the injury in question, and
2. A copy of the order, judgement, minute or document which provides for that reduction.

Where the matter has been settled by agreement the defendant/insurer must supply the following evidence to the CRU:

1. a statement that it was agreed by or on behalf of the injured person and the person who proposed to make a compensation payment that the damages payable under the settlement were to be reduced to reflect the injured person’s share in the responsibility for the injury in question.
2. A statement as to how that agreement was reached;
3. The amount of damages payable under the settlement had there been no such agreement;
4. The amount or proportion by which it was agreed that the damages were to be reduced; and
5. The names of all those involved in the settlement process.

Rather than wait until the matter has been finalised and damages paid, we recommend that a statement be prepared and forwarded to the claimant’s solicitors as soon as an agreement on contributory negligence is reached - it is in the defendant’s interests to pro active on this point. 

Repayable benefits can still be offset against the appropriate heads of damage in a Schedule of Special Damages.

One final point, the CRU has asked that compensators do not seek certificates by fax except in urgent cases – no real change there, but you have been warned that they are likely to require proof of urgency before complying!

 

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