34AARegulations may provide for payments in relation to high cost claims

#### 34AA Regulations may provide for payments in relation to high cost claims (1) The regulations may provide in relation to: (a) making payments to MDOs and insurers of claim handling fees; and (b) making payments on account of legal, administrative or other costs incurred by MDOs and insurers (whether on their own behalf or otherwise); in respect of claims relating to incidents in relation to which a high cost claim indemnity is payable (see section 30). (2) Without limiting subsection (1), the regulations may: (a) make provision for: (i) the conditions that must be satisfied for an amount to be payable to an MDO or insurer; and (ii) the amount that is payable; and (iii) the conditions that must be complied with by an MDO or insurer to which an amount is paid; and (iv) other matters related to the making of payments, and the recovery of overpayments; and (b) provide that this Division applies with specified modifications in relation to a liability that relates to costs in relation to which an amount has been paid under regulations made for the purposes of this section; and (c) make provision for making payments on account of legal, administrative or other costs incurred by MDOs and insurers (whether on their own behalf or otherwise), in respect of incidents notified to MDOs and insurers that could give rise to claims in relation to which a high cost claim indemnity could be payable. (3) Paragraph (2)(b) does not allow the regulations to modify a provision that creates an offence, or that imposes an obligation which, if contravened, constitutes an offence. (4) It does not matter for the purposes of paragraph (2)(c) whether claims are subsequently made in relation to the incidents referred to in that paragraph.