Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If an insurer has been given a preliminary notice under section 59ZE or a recovery notice under section 59ZG in relation to the insurer's liability to make a payment indemnifying a compensation payer, the insurer must not make the payment to the compensation payer.
Penalty: Imprisonment for 12 months.
(1A) Subsection (1) does not apply if:
(a) in the case of a preliminary notice--the Commission has given the insurer written notice that the preliminary notice is revoked; or
(b) in the case of a recovery notice--the insurer has paid to the Commonwealth the amount specified in the notice; or
(c) the Commission has given the insurer written permission to make the payment to the compensation payer.
Note: The defendant bears an evidential burden in relation to the matters in subsection (1A). See subsection 13.3(3) of the Criminal Code .
(2) An insurer who contravenes subsection (1) is, in addition to being liable to prosecution for an offence under subsection (1), liable to pay to the Commonwealth:
(a) if the contravention relates to a preliminary notice--an amount determined by the Commission; and
(b) if the contravention relates to a recovery notice--the recoverable amount specified in the notice.
(3) The amount determined by the Commission under paragraph (2)(a) may not be more than the smallest of the amounts worked out under:
(a) if the person claiming compensation is not a member of a couple--subsection 59ZG(4); or
(b) if the person claiming compensation is a member of a couple--subsection 59ZG(5).