Regulation 36 Compounding of awards

In a case where an annual sum which has been or might be awarded under these Regulations does not exceed £35, the compensating authority may, at its discretion, compound its liability in respect thereof by paying a lump sum equivalent to the capital value of the annual sum and, if any lump sum payment has been awarded or might be awarded in addition to such sum under regulation 20, 21 22 or 23, the compensating authority may likewise discharge its liability in respect thereof by an immediate payment.

In any other case, if the person who has been awarded long-term or retirement compensation requests it to do so, the compensating authority may, after having regard to the state of health of that person and the other circumstances of the case, compound up to one quarter of its liability to make payments under the award (other than payments to a widow, child or other dependant under regulation 26) by the payment of an equivalent amount as a lump sum or, where any compensation has been awarded as a lump sum by increasing that compensation to such equivalent amount; and in calculating for this purpose the liability of the authority to make such payments, account shall be taken of the annual value of lump sum payments of compensation.

The making of a composition under paragraph (2) in relation to an award of long-term or retirement compensation shall not prevent the subsequent making of a composition under paragraph (1) in relation to that award but, subject as aforesaid, not more than one composition may be made in relation to any award.