Wednesday 13 August 2014
Changes in Social Welfare payments- Personal Injuries.
A new piece of legislation, reforming Social Welfare distribution, has now come into effect.
If a person is in an accident and unable to work and in receipt of social welfare, under normal circumstances the insurance company when compensating the individual, would not have to discharge the Social Welfare received by the individual , due to being unable to work.
Under the Social Welfare and Pensions Act 2013, now the Department of Social Protection, can reclaim this amount paid out , directly from the Insurance Company.
This will have implications on settlements, as the traditional method of 'all in settlements' to cover loss of earnings, will not be allowable under this new legislation. This will all have to be itemised.
The Department of Social Protection it seems, is unwilling to allow Insurance Companies to be in a position to avoid having to discharge these figures and ultimately will now, will have to discharge this expenditure.
Which is bad news for the Insurance Companies- however positive news for people claiming , as they will have a more thorough assessment of their matters and these 'all in' type settlements will become a thing of the past.
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Hudson Solicitors, Dun Laoghaire.