Claim Raven explanation
What this means
This narrow rule addresses administrative awards, settlements, compromises, or judgments based on the same disability or death that became final before December 1, 1962.
This historical bar is distinct from the offset rules for later recoveries. The form and date of the recovery are decisive, so the words settlement and judgment should not be used interchangeably.
How this helps your claim
For claims received on or after October 1, 1997, a qualifying administrative award, settlement, or compromise finalized before the historical cutoff bars later section 1151 benefits for that disability or death. A pre-cutoff judgment is treated differently and permits benefits unless the judgment’s terms say otherwise.
What to check in your records
Verify the type of recovery, its final date, the disability or death it covered, and the operative terms of the judgment or agreement.
- Obtain the complete pre-1962 award, settlement, compromise, or judgment rather than relying on a later summary.
- Confirm the final date and whether the recovery was administrative, negotiated, or judicial.
- Compare the harm covered by the recovery with the disability or death supporting the section 1151 claim.
Establish the historical document before applying the bar
Because this rule concerns records more than six decades old, later correspondence may omit a decisive term. Use the signed or entered instrument whenever possible.
If the recovery was a judgment, read whether its terms restrict later benefits. Do not apply the administrative-award rule automatically to a court judgment.
Does this rule apply to a modern Federal Tort Claims Act settlement?
No. This section concerns recoveries finalized before December 1, 1962. Modern recoveries are generally addressed by the offset provisions in section 3.362.
Official regulatory text
38 CFR § 3.363
eCFR snapshot: 2026-09-17. Layout and spacing are adapted for reading. The full section and its tables are included below.
§ 3.363 Bar to benefits under 38 U.S.C. 1151.
(a) Claims subject to this section. This section applies to claims received by VA on or after October 1, 1997. This includes original claims and claims to reopen or otherwise readjudicate a previous claim for benefits under 38 U.S.C. 1151 or its predecessors.
(b) Administrative award, compromises, or settlements, or judgments that bar benefits under 38 U.S.C. 1151. If a veteran's disability or death was the basis of an administrative award under 28 U.S.C. 1346(b) made, or a settlement or compromise under 28 U.S.C. 2672 or 2677 finalized, before December 1, 1962, VA may not award benefits under 38 U.S.C. 1151 for any period after such award, settlement, or compromise was made or became final. If a veteran's disability or death was the basis of a judgment that became final before December 1, 1962, VA may award benefits under 38 U.S.C. 1151 for the disability or death unless the terms of the judgment provide otherwise.
(Authority: 38 U.S.C. 1151)
[69 FR 46434, Aug. 3, 2004]
Related references
- 38 CFR § 3.362: Offsets between section 1151 benefits and federal recoveries
- 38 USC § 1151: Compensation for Disability Caused by VA Care
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