(1) This Division applies if:
(a) compensation is paid under this Act in respect of:
(i) a service injury, disease or death of a person (the cause of action ); or
(ii) the loss of, or damage to, a medical aid used by a person (the cause of action ); and
(b) the cause of action occurred in circumstances that appear to create a legal liability of another person (the defendant ) other than the Commonwealth or a potentially liable member to pay damages in respect of the cause of action; and
(c) the person or a dependant of the person (as the case may be) (the plaintiff ):
(i) has not made a claim for damages against the defendant in respect of the cause of action; or
(ii) has made such a claim, but has not prosecuted it.
(2) In paragraph (1)(c), a reference to a claim having been made or not having been made by the plaintiff includes a reference to a claim having been made or not having been made on behalf of the plaintiff.