19Consequences of suspension of licence of licensed authority

19 Consequences of suspension of licence of licensed authority

Application (1) This section applies if a licence held by a licensed authority is suspended under paragraph 106(1)(a) of the Act. Liability (2) If the licence authorises the licensed authority to accept liability under the Act for payments in respect of injury, loss or damage suffered by, or the death of, any of its employees: (a) that liability is not affected by the suspension of the licence; and (b) during the period of the licence suspension, Comcare may discharge a liability mentioned in paragraph (a); and (c) the licensed authority must pay to Comcare the full amount of any liability discharged under paragraph (b), unless section 20 applies. Claims management (3) If the licence authorises the licensed authority to accept responsibility to manage claims made by its employees: (a) during the period of the licence suspension: (i) the licensed authority must not manage those claims; and (ii) Comcare must manage those claims in the name of the licensed authority; and (iii) on receiving a claim, notice or other communication, or being served with any proceedings in relation to a claim, the licensed authority must give the claim, notice, communication or details of the proceedings to Comcare; and (iv) the licensed authority must give to Comcare all documents, information and assistance reasonably required for Comcare to manage those claims; and (b) the licensed authority must pay to Comcare an amount determined by Comcare to be the costs incurred by Comcare in managing claims under subparagraph (a)(ii) (including any costs incurred in transferring the claim from the licensed authority to Comcare), unless section 20 applies; and (c) Comcare is not liable to the licensed authority for any act or omission in managing claims under subparagraph (a)(ii).

Note: Under section 15 of the Safety, Rehabilitation and Compensation Directions 2019, the Commission may suspend a licence held by a licensed authority, but may not suspend a licence held by a licensed corporation.