(1) If the Minister is satisfied that compensation in accordance with this Part is payable to a claimant for compensation in respect of the loss to which the claim relates, the Minister shall, by written notice given to the claimant:
(a) inform the claimant that the claim is accepted;
(b) make an offer to the claimant of the amount of compensation to which the Minister considers the claimant is entitled in accordance with Division 1; and
(c) explain to the claimant how the amount offered was arrived at.
(2) If the Minister does not consider that compensation in accordance with this Part is payable to a person who has made a claim in respect of the loss suffered particulars of which were included in the claim, the Minister shall, by written notice given to the claimant, inform the claimant that the claim is rejected and state the reasons for the rejection.
(3) If, within 42 days after the receipt of the claim, the Minister has not given the claimant a notice under subsection (1) or (2), the Minister shall, at the end of that period, be taken to have rejected the claim and to have given the claimant a notice under subsection (2).
(4) The claimant may, in writing and before the end of the period referred to in subsection (3), agree to an extension of that period.