Citation, commencement and interpretation

1.—(1) This Order may be cited as the Armed Forces and Reserve Forces (Compensation Scheme) (Amendment No. 3) Order 2008 and shall come into force on 15th December 2008.

(2) In this Order “the principal Order” means the Armed Forces and Reserve Forces (Compensation Scheme) Order 2005(2) and a reference to a numbered article or Schedule is a reference to the article or Schedule in the principal Order which bears that number.

Amendments to the principal Order

2.  The principal Order is amended as follows.

Amendment of article 2 (interpretation)

3.  Article 2(1) is amended as follows—

(a) after the definition of “accredited medical specialist” insert—

““additional lump sum” means the sum referred to in article 15C;”;

(b) for the definition of “lump sum” substitute—

““lump sum” means, except in the expressions “additional multiple injury lump sum” and “additional lump sum”, the sum referred to in article 14(1)(a);”.

Amendment of article 7 (injury caused by service)

4.  In article 7(1) for the words and numbers “and 15B(1)” substitute “, 15B(1) and 15C(1)”.

Amendment of article 8 (injury made worse by service)

5.  In article 8(1) after “the predominant cause of the worsening of the injury and” insert “, subject to articles 15(1A), 15A(1), 15B(1) and 15C(1),”.

Amendment of article 13 (interpretation of Part III)

6.  In article 13(b) delete “subject to article 15B(6)”.

Amendment of article 15 (amount of lump sum)

7.  Article 15 is amended as follows—

(a) in paragraph (6) after “earlier award” insert “(including any award of additional lump sum)”;

(b) in sub-paragraph (6A)(b) for “the coming into force of this Order” substitute “8th February 2008”;

(c) in paragraph (6B) after “earlier award” insert “(including any award of additional multiple injury lump sum and any award of additional lump sum)”.

Amendment of article 15A (amount of lump sum where 100 per cent guaranteed income payment determined)

8.  Article 15A is amended as follows—

(a) in sub-paragraph (1)(b) for “the coming into force of this Order” substitute “8th February 2008”;

(b) in paragraph (6) after “earlier award” insert “(including any award of additional lump sum)”.

Amendment of article 15B (additional multiple injury lump sum)

9.  Article 15B is amended as follows—

(a) in sub-paragraphs (b) and (c) of paragraph (1) for “the coming into force of this Order” substitute “8th February 2008”;

(b) delete paragraph (6).

Insertion of articles 15C and 15D

10.  After article 15B insert—

“Additional lump sum

15C.—(1) Subject to article 15D, the Secretary of State shall award a benefit (“the additional lump sum”) for a qualifying injury in accordance with this article.

(2) Only one award of additional lump sum shall be made for a qualifying injury.

(3) The amount of the additional lump sum is, subject to paragraph (4), A – B.

(4) The total amount payable under paragraph (3) shall not, taking into account all previous awards of benefit applicable to the qualifying injury or qualifying injuries sustained in one incident, exceed the amount specified at level 1 in column (a) of the Table in paragraph (6).

(5) In this article—

(a) “A” means the combined total of the amount of benefit that would be awarded for each qualifying injury sustained in one incident if, in making the determination as to the relevant amount of benefit that was to be awarded —

(i) the reference in article 14(2)(b) to the amount in column (b) of Table 10 was read as a reference to the amount in column (b) of the Table in paragraph (6); and

(ii) the reference in articles 15(3), 15A(3) and 15B(5) to the amount specified at level 1 in column (a) of Table 10 was read as a reference to the amount specified at level 1 in column (a) of the Table in paragraph (6);

(b) “B” means the combined total of all previous awards of benefit applicable to the qualifying injury or qualifying injuries sustained in one incident;

(c) “benefit” means a lump sum or an additional multiple injury lump sum;

(d) “determination” means the determination by the Secretary of State in accordance with this Order as to the total of all awards of benefit applicable to the qualifying injury or qualifying injuries sustained in one incident;

(e) “qualifying injury” means an injury in respect of which an entitlement to benefit has been determined before 15th December 2008;

(f) “relevant amount” has the meaning described in article 14(2)(b).

(6) The Table referred to in paragraphs (4) and (5) is—

Exception to entitlement to additional lump sum

15D.—(1) This article applies where—

(a) a qualifying injury has been sustained; and

(b) on or after 15th December 2008 the award of benefit applicable to that qualifying injury is —

(i) increased under article 15(5) or 15A(5);

(ii) revised under article 45, 47, 48 or 49; or

(iii) revised by a Pension Appeal Tribunal, an appropriate Social Security Commissioner, the First-tier Tribunal, the Upper Tribunal or a court.

(2) Notwithstanding article 15C, there is no entitlement to an additional lump sum award for a qualifying injury if such an award has not been paid before the day on which the award of benefit applicable to that qualifying injury is increased or revised.

(3) In this article, “benefit” and “qualifying injury” have the same meaning as in article 15C.”.

Amendment of article 19 (more than one injury to the same part of the body)

11.  In article 19(7)(b) for “lump sum which has” insert “total of all awards of benefit which have”.

Amendment of article 37 (cases where claims are not required)

12.  Paragraph (1A) of article 37 is amended as follows —

(a) after “additional multiple injury lump sum” add “or an additional lump sum”;

(b) for “this benefit” substitute “these awards of benefit”.

Amendment of article 44 (interim awards)

13.  Article 44 is amended as follows —

(a) for paragraph (4) substitute—

“(4) Where the final award is at a level of the tariff which is—

(a) at the same level or is higher than the level of the tariff awarded in the interim award, account shall be taken of the amount of benefit paid in accordance with the interim award and only the difference between the amount of benefit paid in accordance with the interim award and the amount of the final award shall be paid;

(b) lower than the level of the tariff awarded in the interim award, no further amount of benefit will be paid in accordance with the final award and no amount of benefit paid in accordance with the interim award is recoverable.”;

(b) after paragraph (4) insert—

“(5) For the purposes of paragraph (4), the amount of benefit paid in accordance with the interim award means the amount of the lump sum awarded in the interim award together with any award of additional multiple injury lump sum or any award of additional lump sum applicable to that interim award.”.

Amendment of article 45 (reconsideration)

14.  In article 45, after paragraph (7) insert—

“(8) Where the Secretary of State increases the amount of benefit awarded in the original decision only the difference between the amount of the original award and the amount of the revised award shall be paid.

(9) For the purposes of paragraph (8), the original award means the amount of the lump sum awarded in the original decision together with any award of additional multiple injury lump sum or any award of additional lump sum applicable to that original decision.”.

Amendment of article 47 (review on discharge on medical grounds)

15.  In article 47, after paragraph (3) insert —

“(4) Where the Secretary of State increases the amount of benefit awarded in the original decision only the difference between the amount of the original award and the amount of the revised award shall be paid.

(5) For the purposes of paragraph (4), the original award means the amount of the lump sum awarded in the original decision together with any award of additional multiple injury lump sum or any award of additional lump sum applicable to that original decision.”.

Amendment of article 48 (review – exceptional circumstances)

16.  In article 48, after paragraph (6) insert—

“(7) Where the Secretary of State increases the amount of benefit awarded in the original decision only the difference between the amount of the original award and the amount of the revised award shall be paid.

(8) For the purposes of paragraph (7), the original award means the amount of the lump sum awarded in the original decision together with any award of additional multiple injury lump sum or any award of additional lump sum applicable to that original decision.”.

Amendment of article 49 (review – ignorance or mistake)

17.  In article 49, after paragraph (4) insert—

“(5) Where the Secretary of State increases the amount of benefit awarded in the original decision only the difference between the amount of the original award and the amount of the revised award shall be paid.

(6) For the purposes of paragraph (5), the original award means the amount of the lump sum awarded in the original decision together with any award of additional multiple injury lump sum or any award of additional lump sum applicable to that original decision.”.

Amendment of article 54 (date on which awards of benefit become payable)

18.  In article 54(1) after “additional multiple injury lump sum” add “, an additional lump sum”.

Amendment of Schedule 4 (the Tariff)

19.  For Table 10 of Schedule 4 substitute—