That's the trouble with making up rules, there are always exceptions!
This is designed to address the point where convicted criminals have attempted to or claimed compensation for injuries incurred while committing a crime or in prison. However either it has been badly reported or ineptly framed!
In any case why should the state provide compensation for a crime that the state did not commit! If you or I are mugged, why should the state pay money to us for your injuries. The state will fix you (NHS) and provide you with income (benefits) if you are injured or can't work.