Legalize / United Kingdom / Public General Act

Compensation Act 2006

Type Public General Act

Publication 2006-07-25

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Standard of care

Deterrent effect of potential liability

1

A court considering a claim in negligence or breach of statutory duty may, in determining whether the defendant should have taken particular steps to meet a standard of care (whether by taking precautions against a risk or otherwise), have regard to whether a requirement to take those steps might—

(a) prevent a desirable activity from being undertaken at all, to a particular extent or in a particular way, or

(b) discourage persons from undertaking functions in connection with a desirable activity.

Apologies, offers of treatment or other redress

2

An apology, an offer of treatment or other redress, shall not of itself amount to an admission of negligence or breach of statutory duty.

Mesothelioma: damages

3

(1) This section applies where—

(a) a person (“the responsible person”) has negligently or in breach of statutory duty caused or permitted another person (“the victim”) to be exposed to asbestos,

(b) the victim has contracted mesothelioma as a result of exposure to asbestos,

(c) because of the nature of mesothelioma and the state of medical science, it is not possible to determine with certainty whether it was the exposure mentioned in paragraph (a) or another exposure which caused the victim to become ill, and

(d) the responsible person is liable in tort, by virtue of the exposure mentioned in paragraph (a), in connection with damage caused to the victim by the disease (whether by reason of having materially increased a risk or for any other reason).

(2) The responsible person shall be liable—

(a) in respect of the whole of the damage caused to the victim by the disease (irrespective of whether the victim was also exposed to asbestos—

(i) other than by the responsible person, whether or not in circumstances in which another person has liability in tort, or

(ii) by the responsible person in circumstances in which he has no liability in tort), and

(b) jointly and severally with any other responsible person.

(3) Subsection (2) does not prevent—

(a) one responsible person from claiming a contribution from another, or

(b) a finding of contributory negligence.

(4) In determining the extent of contributions of different responsible persons in accordance with subsection (3)(a), a court shall have regard to the relative lengths of the periods of exposure for which each was responsible; but this subsection shall not apply—

(a) if or to the extent that responsible persons agree to apportion responsibility amongst themselves on some other basis, or

(b) if or to the extent that the court thinks that another basis for determining contributions is more appropriate in the circumstances of a particular case.

(5) In subsection (1) the reference to causing or permitting a person to be exposed to asbestos includes a reference to failing to protect a person from exposure to asbestos.

(6) In the application of this section to Scotland—

(a) a reference to tort shall be taken as a reference to delict, and

(b) a reference to a court shall be taken to include a reference to a jury.

(7) The Treasury may make regulations about the provision of compensation to a responsible person where—

(a) he claims, or would claim, a contribution from another responsible person in accordance with subsection (3)(a), but

(b) he is unable or likely to be unable to obtain the contribution, because an insurer of the other responsible person is unable or likely to be unable to satisfy the claim for a contribution.

(8) The regulations may, in particular—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) replicate or apply (with or without modification) a transitional compensation provision;

(d) provide for expenses incurred (including the payment of compensation) to be met out of levies collected in accordance with section 213(3)(b) of the Financial Services and Markets Act 2000 (c. 8) (the Financial Services Compensation Scheme);

(e) modify the effect of a transitional compensation provision;

(f) enable the Financial Conduct Authority or the Prudential Regulation Authority to amend the Financial Services Compensation Scheme;

(g) modify the Financial Services and Markets Act 2000 in its application to an amendment pursuant to paragraph (f);

(h) make, or require the making of, provision for the making of a claim by a responsible person for compensation whether or not he has already satisfied claims in tort against him;

(i) make, or require the making of, provision which has effect in relation to claims for contributions made on or after the date on which this Act is passed.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) In subsections (7) and (8)—

(a) a reference to a responsible person includes a reference to an insurer of a responsible person, and

(b) “transitional compensation provision” means a provision of an enactment which is made under the Financial Services and Markets Act 2000 and—

(i) preserves the effect of the Policyholders Protection Act 1975 (c. 75), or

(ii) applies the Financial Services Compensation Scheme in relation to matters arising before its establishment.

(11) Regulations under subsection (7)—

(a) may include consequential or incidental provision,

(b) may make provision which has effect generally or only in relation to specified cases or circumstances,

(d) shall be made by statutory instrument, and

(e) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

Part 2 — Claims Management Services

Provision of regulated claims management services

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Regulator

5

(1) The Secretary of State may by order designate a person (“the Regulator”)—

(a) to authorise persons to provide regulated claims management services,

(b) to regulate the conduct of authorised persons, and

(2) The Secretary of State may designate a person only if satisfied that the person—

(a) is competent to perform the functions of the Regulator,

(b) will make arrangements to avoid any conflict of interest between the person's functions as Regulator and any other functions, and

(i) setting and monitoring standards of competence and professional conduct for persons providing regulated claims management services,

(ii) promoting good practice by persons providing regulated claims management services, in particular in relation to the provision of information about charges and other matters to persons using or considering using the services,

(iii) promoting practices likely to facilitate competition between different providers of regulated claims management services, and

(iv) ensuring that arrangements are made for the protection of persons using regulated claims management services (including arrangements for the handling of complaints about the conduct of authorised persons)).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The Regulator shall—

(a) comply with any directions given to him by the Secretary of State;

(b) have regard to any guidance given to him by the Secretary of State;

(d) try to meet any targets set for him by the Secretary of State;

(e) provide the Secretary of State with any report or information requested (but this paragraph does not require or permit disclosure of information in contravention of any other enactment).

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The Secretary of State may pay grants to the Regulator (which may be on terms or conditions, including terms and conditions as to repayment with or without interest).

(7) A reference in this Part to the Regulator includes a reference to a person acting on behalf of the Regulator or with his authority.

(8) The Secretary of State may by order revoke a person's designation under subsection (1).

(9) While no person is designated under subsection (1) the Secretary of State shall exercise functions of the Regulator.

(10) The Secretary of State may by order transfer (whether for a period of time specified in the order or otherwise) a function of the Regulator to the Secretary of State.

Exemptions

6

(1) The Secretary of State may by order provide that section 4(1) shall not prevent the provision of regulated claims management services by a person who is a member of a specified body.

(2) The Secretary of State may by order provide that section 4(1) shall not prevent the provision of regulated claims management services—

(a) by a specified person or class of person,

(b) in specified circumstances, or

(3) Provision by virtue of subsection (1) or (2) may be expressed to have effect subject to compliance with specified conditions.

(4) Section 4(1) shall not prevent the provision of regulated claims management services by a person who is established or appointed by virtue of an enactment.

(5) For the purposes of this Part a person is “exempt” if, or in so far as, section 4(1) does not, by virtue of this section, prevent him from providing regulated claims management services.

Enforcement: offence

7

(1) A person commits an offence if he contravenes section 4(1).

(2) A person who is guilty of an offence under subsection (1) shall be liable—

(a) on conviction on indictment—

(i) to imprisonment for a term not exceeding two years,

(ii) to a fine, or

(iii) to both, or

(b) on summary conviction—

(i) to imprisonment for a term not exceeding 12 months,

(ii) to a fine not exceeding the statutory maximum, or

(iii) to both.

(3) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 the reference in subsection (2)(b)(i) to 12 months is to be read as a reference to 6 months.

Enforcement: the Regulator

8

(1) The Regulator may apply to the court for an injunction restraining a person from providing regulated claims management services if he is not—

(a) an authorised person,

(b) an exempt person, or

(2) In subsection (1) “the court” means the High Court or the county court.

(3) The Regulator may—

(a) investigate whether an offence has been committed under this Part;

(b) institute criminal proceedings in respect of an offence under this Part.

(4) For the purpose of investigating whether an offence has been committed under this Part the Regulator may require the provision of information or documents.

(5) On an application by the Regulator a judge of the High Court, Circuit judge or justice of the peace may issue a warrant authorising the Regulator—

(a) to enter and search premises on which a person conducts or is alleged to conduct regulated claims management business, for the purposes of investigating whether an offence has been committed under this Part., and

(b) to take possession of any written or electronic records found on the search for the purposes of subsection (6).

(6) The Regulator may take copies of written or electronic records found on a search by virtue of subsection (5) for a purpose specified in subsection (3)(a) or (b).

(7) In subsections (4) to (6) a reference to the Regulator includes a reference to a person authorised by him in writing.

(8) The Secretary of State shall make regulations—

(a) specifying matters of which a judge or justice of the peace must be satisfied, or to which he must have regard, before issuing a warrant under subsection (5), and

(b) regulating the exercise of a power under or by virtue of subsection (4) or (5) (whether by restricting the circumstances in which a power may be exercised, by specifying conditions to be complied with in the exercise of a power, or otherwise).

Regulations

9

(1) The Secretary of State shall make regulations about—

(a) authorisations under section 5(1);

(b) the functions of the Regulator.

(2) The Schedule specifies particular provision that may be made by the regulations.

(3) Transitional provision of regulations under this section may, in particular, make provision about the extent to which functions under this Part or under the regulations may be exercised in respect of matters arising before the commencement of a provision made by or by virtue of this Part.

Obstructing the Regulator

10

(1) A person commits an offence if without reasonable excuse he obstructs the Regulator in the exercise of a power—

(a) under section 8(4) to (6), or

(b) by virtue of paragraph 14 of the Schedule.

(2) A person who is guilty of an offence under subsection (1) shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Pretending to be authorised, &c.

11

(1) A person commits an offence if he falsely holds himself out as being—

(a) an authorised person,

(b) an exempt person, or

(2) A person commits an offence if—

(a) he offers to provide regulated claims management services, and

(b) provision by him of those services would constitute an offence under this Part.

(3) For the purposes of subsection (2) a person offers to provide services if he—

(a) makes an offer to a particular person or class of person,

(b) makes arrangements for an advertisement in which he offers to provide services, or

(4) A person who is guilty of an offence under subsection (1) or (2) shall be liable—

(a) on conviction on indictment—

(i) to imprisonment for a term not exceeding two years,

(ii) to a fine, or

(iii) to both, or

(b) on summary conviction—

(i) to imprisonment for a term not exceeding 12 months,

(ii) to a fine not exceeding the statutory maximum, or

(iii) to both.

(5) Where a person commits an offence under this section by causing material to be displayed or made accessible, he shall be treated as committing the offence on each day during any part of which the material is displayed or made accessible.

(6) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 the reference in subsection (4)(b)(i) to 12 months is to be read as a reference to 6 months.

The Claims Management Services Tribunal

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeals and references to Tribunal

13

(1) A person may appeal to the First-tier Tribunal (“the Tribunal”) if the Regulator—

(a) refuses the person's application for authorisation,

(b) grants the person authorisation on terms or subject to conditions,

(d) suspends the person's authorisation, ...

(e) cancels the person's authorisation, or

(f) imposes a penalty on the person.

(1A) A person who is appealing to the Tribunal against a decision to impose a penalty may appeal against—

(a) the imposition of the penalty,

(b) the amount of the penalty, or

(2) The Regulator may refer to the Tribunal (with or without findings of fact or recommendations)—

(a) a complaint about the professional conduct of an authorised person, or

(b) the question whether an authorised person has complied with a rule of professional conduct.

(3) On a reference or appeal under this section the Tribunal—

(a) may take any decision on an application for authorisation that the Regulator could have taken;

(b) may impose or remove conditions on a person's authorisation;

(d) may cancel a person's authorisation;

(da) may require a person to pay a penalty (which may be of a different amount from that of any penalty imposed by the Regulator);

(db) may vary any date by which a penalty, or any part of a penalty, is required to be paid;

(e) may remit a matter to the Regulator;

(f) may not award costs.

(3A) In the case of appeals under subsection (1), Tribunal Procedure Rules—

(a) shall include provision for the suspension of decisions of the Regulator while an appeal could be brought or is pending;

(b) shall include provision about the making of interim orders;

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.