As the rollout of the NDIS nears completion, insurers and defendants need to understand their obligations regarding Preliminary Notices and Recovery Notices as non-compliance is a criminal offence. Wotton + Kearney’s Hope Saloustros and Laura Jean consider these implications of the NDIS for insurers – as well as the reporting obligations and the NDIA’s broad powers to litigate common law claims in a person’s name.

AT A GLANCE

• The National Disability Insurance Scheme (NDIS) is a no-fault insurance scheme providing funding to people with disability and the National Disability Insurance Agency (NDIA) is responsible for administering the NDIS.
• The NDIA can issue Preliminary Notices and Recovery Notices on insurers and defendants. It is a criminal offence to pay compensation towards a settlement while those notices are in effect.
• Insurers and defendants also need to be aware of their reporting obligations and the NDIA’s broad powers, which include the power to litigate common law claims in a person’s name.
• Insurers and defendants need to carefully consider the application of the NDIS in structuring settlement agreements with NDIS participants and prospective participants.

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