Commentary on Sections and Schedules Section 2:  Compensation in respect of suspension
23.Section 2 inserts new section 128ZB into the RTA.
24.Subsection (1) of the new section 128ZB provides that the Secretary of State must introduce a compensation scheme through regulations. A scheme may, in particular, cover income and non-income losses incurred by a person whose registration is suspended by virtue of section 128ZA.
25.Subsection (2) limits the circumstances in which compensation may be payable under the scheme.
26.Subsection (3) provides that, where the Registrar’s decision to terminate the person’s registration, or to refuse the person’s application for an extension of their registration, is overturned on appeal, any compensation can only relate to the period of suspension.
27.Subsection (4) provides that the compensation scheme may specify descriptions of income and non-income losses but does not oblige the scheme to make payments in respect of all such losses or the full amount of such losses.
28.Subsection (5) provides that a scheme may specify how losses will be valued, the amounts to be paid in compensation or how they will be calculated. The scheme may also provide procedures for making claims and their determination.
29.Subsection (6) provides for the right of appeal to the First-tier Tribunal of a person aggrieved by a decision of the Secretary of State regarding entitlement to compensation payments or the amounts of any such payments.
30.Subsection (7) provides, in the case of appeal, for the First-tier Tribunal to make such order as it considers appropriate.
31.Subsection (8) provides that the First-tier Tribunal may refer the decision back to the Secretary of State for reconsideration if evidence emerges during the course of the appeal that has not previously been made available to the Secretary of State.
32.Subsection (9) defines “income losses” and “non-income losses”.