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Medical Indemnity (Prudential Supervision and Product Standards) Bill 2003

 

 

 

 

 

 

Medical Indemnity (Prudential Supervision and Product Standards) Act 2003

 

No. 37, 2003

 

 

 

 

 

An Act to make provision in relation to medical indemnity cover for health care professionals, and for related purposes

   

   

   



Contents

Part 1—Introductory                                                                                                              2

Division 1—Preliminary                                                                                               2

1............ Short title............................................................................................ 2

2............ Commencement.................................................................................. 2

3............ Objects................................................................................................ 2

Division 2—Interpretation                                                                                          3

4............ Definitions.......................................................................................... 3

5............ Providing medical indemnity cover..................................................... 9

6............ Claims-made based cover and incident-occurring based cover............ 9

7............ When certain DDR arrangements are taken to be entered into......... 11

Division 3—Application of Act                                                                               12

8............ Application of Act........................................................................... 12

9............ Act extends to external Territories................................................... 12

Part 2—Prudential requirements for provision of medical indemnity cover               13

Division 1—Provision of medical indemnity cover                                      13

10.......... Medical indemnity cover to be provided only by general insurers and only under contracts of insurance             13

11.......... Intermediary’s responsibilities......................................................... 14

Division 2—Transitional arrangements                                                             16

12.......... Effect of determination under subsection 13(3)............................... 16

13.......... APRA determination that minimum capital requirements do not apply 16

14.......... Administrative review...................................................................... 19

15.......... Application of section 115A of the Insurance Act 1973 .................. 20

Part 3—Product standards for medical indemnity insurance contracts   21

Division 1—Minimum cover                                                                                    21

16.......... Minimum cover amount................................................................... 21

17.......... Minimum cover for single claim....................................................... 21

18.......... Minimum annual cover—incident-occurring based cover................. 23

19.......... Minimum annual cover—other cover............................................... 25

20.......... Amount payable by insurer.............................................................. 27

Division 2—Offers to provide retroactive and run-off cover for otherwise uncovered prior incidents                                                                                                                       28

Subdivision A—Regulated insurance contracts                                                   28

21.......... Regulated insurance contracts........................................................... 28

Subdivision B—Insurer’s responsibilities                                                            29

22.......... Additional offer of retroactive cover when regulated insurance contract entered into, comes into effect or is renewed.......................................................................................................... 29

23.......... Additional offer of run-off cover when particular events happen during claims period for regulated insurance contract.......................................................................................................... 33

24.......... Complying offer............................................................................... 38

25.......... APRA guidelines.............................................................................. 40

26.......... Federal Court may order insurer to make offer................................ 40

Division 3—Intermediary’s responsibilities                                                   42

27.......... Intermediary’s responsibilities......................................................... 42

Part 4—Administration                                                                                                       43

28.......... APRA to have general administration of Part 2............................... 43

29.......... APRA Act secrecy provisions apply.............................................. 43

30.......... ASIC to have general administration of Part 3................................. 43

Part 5—Miscellaneous                                                                                                        44

31.......... Anti-avoidance measures.................................................................. 44

32.......... Act not to affect State and Territory laws....................................... 45

33.......... Regulations....................................................................................... 45

 



Medical Indemnity (Prudential Supervision and Product Standards) Act 2003

No. 37, 2003

 

 

 

An Act to make provision in relation to medical indemnity cover for health care professionals, and for related purposes

[ Assented to 2 May 2003 ]

The Parliament of Australia enacts: