105Consequences of failure to comply with a requirement to take action to obtain compensation

#### 105 Consequences of failure to comply with a requirement to take action to obtain compensation (1) A participant or prospective participant who is given a notice under subsection 104(2) requiring him or her to take action (the required action) to claim or obtain compensation within a specified period must take the required action within the period. (2) If a participant does not take the required action within the period, and the action is to enable the participant or prospective participant to claim or obtain compensation under a scheme of compensation under a Commonwealth, State or Territory law: (a) if a plan is in effect for the participant—the plan is suspended from the end of the specified period until the participant takes the required action; or (b) if a plan is not yet in effect for the participant—the CEO must still comply with section 32 in relation to commencing the facilitation of the preparation of the participant’s plan, but the plan does not come into effect until the participant takes the required action. (3) If a prospective participant does not take the required action within the period, the CEO is not prevented from deciding whether or not the prospective participant meets the access criteria and commencing the facilitation of the preparation of the participant’s plan, but the plan does not, despite section 37, come into effect until the participant takes the required action. (4) If a participant or prospective participant does not take the required action within the period, and the action is to enable the person to claim or obtain compensation otherwise than under a scheme of compensation under a Commonwealth, State or Territory law, the CEO may: (a) take action to claim or obtain compensation in the name of the participant or prospective participant; or (b) take over the conduct of any existing claim. (5) Before taking action to claim or obtain compensation, or taking over the conduct of an existing claim, the CEO must have regard to the following: (a) the disability of the participant or prospective participant; (b) the circumstances which give rise to the entitlement or possible entitlement to compensation; (c) any impediments the CEO may face if the CEO takes the action or takes over the conduct of the claim; (d) any reasons given by the participant or prospective participant as to why he or she has not claimed or obtained compensation (including in response to a notice under subsection 104(2)); (e) the impact (including any financial impact), of the CEO taking the action or taking over the conduct of the claim, on the participant or prospective participant and his or her family; (f) any other matter the CEO considers relevant, having regard to the objects and principles set out in Part 2 of Chapter 1 of this Act. (6) The CEO must not take any action to claim or obtain compensation, or take over the conduct of an existing claim, unless: (a) the CEO has notified the participant or prospective participant, in writing, that the action is being considered; and (b) 28 days have passed since the notice was given.