What is CRU?
The Compensation Recovery Unit is a division of the Department for Social Development. It is in charge of recovering benefits which were paid out as a result of an injury. The assessment of the amount of benefits is referred to as the ‘CRU assessment’.
In every personal injury claim, before the matter is settled, there must be a valid CRU certificate detailing the amount owing to the Government in relation to recoverable benefits. These certificates are issued by the DSD and are renewed periodically.
What else does CRU cover?
In some instances, when a Plaintiff has attended hospital, the Health Trust will recover its expenditure on that patient for its attendance in relation to the accident in question. This is known as NHS CRU.
In what kind of circumstances would the CRU get involved?
For example, let’s say a Plaintiff who works as a hairdresser injures her hand as a result of a Defendant’s negligence in causing a car accident. Following the accident the Plaintiff has trouble flexing her hand. There is medical evidence which substantiates the Plaintiff’s claim and predicts that the Plaintiff’s injuries will have resolved six months post-accident.
The Plaintiff is unable to work as a hairdresser for this period of six months and as a result receives benefit payments. The CRU is entitled to recover benefits in relation to payment of these benefits which were received by the Plaintiff during this six month period. In this case CRU is recovered from the negligent driver’s insurance company.
When can CRU not be recovered from the Defendant’s insurer?
The Insurer for the negligent driver is only liable for benefits paid out as a direct result of the accident in question, e.g. if a Plaintiff goes on to have another accident then the chain of causation is broken and the Defendant’s Insurer is not liable for any further benefits paid out.
Can the CRU assessment be appealed?
Yes, in many instances, the Defendant’s insurance company is advised to appeal the CRU assessment. CRU becomes very significant as it often accumulates to include very large sums of money. In some cases, benefits are recovered over a period of a number of years and can mount to ten thousands of pounds.
CRU is only recoverable up until the date the Plaintiff received the settlement cheque. This acts as an incentive for an action to be resolved so as to minimise this supplementary element of a claim.
Do you have to wait for the conclusion of a case to appeal CRU?
Often it is useful to ask the CRU to review their assessment at an early stage in proceedings. A Review can be requested within 28 days of receipt of any certificate throughout the progress of a case.
What are the time limits for a CRU appeal?
A CRU appeal should be submitted within 28 days of date of settlement.
Technically however, a CRU appeal can also be submitted within 28 days of the date of payment of CRU. The CRU assessment as detailed on the certificate must be paid in full before an appeal is allowed.
The CRU may allow an appeal which is submitted outside the deadline however this discretion is not to be relied on. In this case you must stipulate on the appeal application that you are requesting an extension.
How do you appeal a CRU assessment?
The appeal process is by way of a written application. This can be followed up with an oral hearing and this is generally considered advisable so that submissions may be put to the panel.
The key is to review the medical evidence and demonstrate that the benefits paid out by the CRU cannot be attributed to the Defendant’s negligent act. There is a reasonable chance of a successful appeal if you can demonstrate that there was:
Who hears CRU appeals?
The Appeals Panel consists of a legal expert and a medical expert, both of whom are independent of the Department of Social Development. They make their decision based on the appeal form submitted by the Plaintiff solicitor and any oral submissions made to them.
Campbell Fitzpatrick has a proven track record as regards the successful submission of CRU reviews and appeals.
Example of a successful CRU Review request
In one case, Campbell Fitzpatrick defended a claim which was being pursued by a Plaintiff who was partially sighted. As a result of an accident (for which the Defendant –our client- was held liable), this Plaintiff’s vision was distorted temporarily. A medical report assessed this loss at a number of weeks and a judge determined that this loss had lasted for no more than six weeks. During this period, the Disability Living Allowance and other benefits received by the Plaintiff had not increased. When a CRU Review was requested, the CRU agreed with our contention that the accident had had no material effect on the Plaintiff’s benefits and the CRU was refunded thereby saving the Defendant’s insurance company thousands of pounds.