The Compensation Recovery Unit (CRU) is part of which organization?

Prepare for the CII Certificate in Insurance - Motor Insurance Products (IF5) Exam. Dive into detailed questions and explore insightful explanations to boost your understanding. Excel in your exam preparation process.

The Compensation Recovery Unit (CRU) is a division that operates under the Department of Work and Pensions (DWP). Its primary function is to recover state benefits that have been paid to individuals who subsequently receive compensation for injuries or illnesses caused by someone else's negligence. The CRU ensures that public funds are protected by recovering money that has been disbursed for welfare purposes when a compensatory payout is made. This means that if a person claims compensation after an accident and has also received benefits related to that incident, the CRU will seek reimbursement from the compensation awarded to ensure taxpayers are not financing payouts for circumstances that are covered by private compensation claims.

Other organizations listed, such as the Home Office, the Ministry of Justice, and the Health and Safety Executive, do not have a role in the financial recovery of state benefits in relation to personal injury claims, thus making them irrelevant to the function of the CRU.

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