(1) If:
(a) one or more NDIS amounts have been paid to a person in respect of a participant's impairment; and
(b) a person (the compensation payer ):
(i) is liable to pay compensation to the participant in relation to the impairment; or
(ii) if the compensation payer is an authority of a State or Territory--has determined that a payment by way of compensation is to be made to the participant in relation to the impairment;
the CEO may give written notice to the compensation payer that the CEO proposes to recover from the compensation payer the amount specified in the notice.
(2) If:
(a) one or more NDIS amounts have been paid to a person in respect of a participant's impairment; and
(b) an insurer is liable, under a contract of insurance, to indemnify the compensation payer against any liability arising from a claim of the participant for compensation;
the CEO may give written notice to the insurer that the CEO proposes to recover from the insurer the amount specified in the notice.
(3) If a compensation payer or insurer is given notice under subsection (1) or (2), the compensation payer or insurer is liable to pay to the Agency the amount specified in the notice.
(4) The amount to be specified in the notice is the lesser of the following:
(a) an amount equal to the sum of the NDIS amounts referred to in paragraph (1)(a) or (2)(a);
(b) an amount equal to the recoverable amount in relation to the judgement, consent judgement or settlement to which the liability relates.
(5) A notice under this section must contain a statement of the effect of section 114 (offences) so far as it relates to such a notice.
(6) This section applies to an amount payable by way of compensation in spite of any law of the Commonwealth, a State or Territory (however expressed) under which the compensation is inalienable.
(7) If the CEO gives a person a notice under this section that the CEO proposes to recover a specified amount from the person, the specified amount is a debt due by the person to the Agency.