Commentary on Sections Compensation of victims of overseas terrorism Section 50: Payments
226.Section 50 sets out the kind of provision that may be included in the Scheme for determining the amount of compensation payable to victims. Compensation payments may be calculated by reference to any one or more of the following factors (amongst other things): the nature of the injury (or injuries) sustained, loss of earnings or expenses incurred. This enables the adoption of a tariff-based approach, based on that set out in the Criminal Injuries Compensation Scheme.
227.Subsection (2) enables the Scheme to set out the circumstances in which compensation payments may be withheld or reduced. This would enable account to be taken of compensation payments available from other sources or payments arising from an insurance policy in respect of the same injury.
228.The Scheme may also make provision for compensation to be repayable in specified circumstances (subsection (2)(b)), for example, where subsequent to the payment of compensation under the Scheme, the victim receives compensation in respect of the same terrorist act from another source. Where a compensation payment which is due to be repaid in accordance with the Scheme is not repaid it may be recovered as a debt (subsection (3)).
229.The Scheme may provide for payments to be made subject to conditions (subsection (2)(c)); these might include a requirement that, in the case of a victim under 18 years, the compensation payments are held in trust until the victim reaches adulthood.
230.The Scheme may also provide that compensation payments do not exceed a specified maximum amount (subsection (2)(d)). The existing domestic Criminal Injuries Compensation Scheme allows for a maximum payment of £500,000.
231.Subsections (5) and (6) protect awards paid under the Scheme by ensuring that any legal charge or assignment attached to such awards is void and by preventing the monies passing to creditors following the bankruptcy of the recipient of an award.