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Medical Indemnity Bill 2002

 

 

 

 

 

Medical Indemnity Act 2002

 

No. 132, 2002

 

 

 

 

 

An Act to make provision in relation to indemnities in relation to the practice of medical professions and vocations, and for related purposes

   

   

   



Contents

Part 1—Preliminary                                                                                                                1

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

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

3............ Objects of this Act and the medical indemnity contribution legislation  2

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

5............ Medical defence organisation (MDO)................................................ 8

6............ Member of an MDO.......................................................................... 9

7............ Incident-occurring based cover........................................................... 9

8............ IBNR exposure of an MDO............................................................. 10

9............ External Territories........................................................................... 11

Part 2—Commonwealth payments                                                                               12

Division 1—IBNR (incurred but not reported) indemnity scheme     12

Subdivision A—Introduction                                                                                    12

10.......... Guide to the IBNR indemnity provisions........................................ 12

Subdivision B—Participating MDOs                                                                     13

11.......... Participating MDO........................................................................... 13

12.......... Minister may determine that MDO not a participating MDO........ 13

13.......... Process for determining whether a determination should be made under section 12               14

Subdivision C—Incidents covered by the IBNR indemnity scheme                  15

14.......... Incidents covered by the IBNR indemnity scheme.......................... 15

Subdivision D—IBNR indemnity                                                                             16

15.......... IBNR indemnity may be payable under either section 16 or 17...... 16

16.......... IBNR indemnity for payment made by MDO or insurer................ 16

17.......... IBNR indemnity for MDO or insurer in external administration..... 18

18.......... Clarification of circumstances in which IBNR indemnity payable.. 20

19.......... Exceptions........................................................................................ 21

20.......... Payment partly related to treatment of public patient in public hospital               21

21.......... Amount of the IBNR indemnity...................................................... 22

22.......... Minister to determine unfunded IBNR factor for a participating MDO 23

23.......... Process for determining unfunded IBNR factor under section 22.... 24

Subdivision E—Recovery of amount paid to MDO or insurer after IBNR indemnity paid 25

24.......... Recovery if certain amounts paid to MDO or insurer after IBNR indemnity paid                25

25.......... MDO or insurer to inform HIC of certain amounts......................... 26

26.......... HIC to notify MDO or insurer of repayable amount...................... 26

27.......... Penalty imposed if an amount is repaid late..................................... 27

Division 2—High cost claim indemnity scheme                                            28

Subdivision A—Introduction                                                                                    28

28.......... Guide to the high cost claim indemnity provisions.......................... 28

29.......... High cost claim threshold................................................................. 29

Subdivision B—High cost claim indemnity                                                           29

30.......... Circumstances in which high cost claim indemnity payable............ 29

31.......... Aggregating amounts paid or payable by an MDO and insurer....... 31

32.......... Exceptions........................................................................................ 32

33.......... Payment partly related to treatment of public patient in public hospital               32

34.......... Amount of high cost claim indemnity.............................................. 33

Division 3—Administration of the indemnity schemes                             34

Subdivision A—Introduction                                                                                    34

35.......... Guide to this Division...................................................................... 34

Subdivision B—Applications for, and payment of, indemnity scheme payments 34

36.......... Application for indemnity scheme payment.................................... 34

37.......... Payment date for indemnity scheme payment................................. 35

Subdivision C—Information gathering and record keeping                              36

38.......... HIC may request information........................................................... 36

39.......... MDOs and insurers to keep relevant records................................... 37

40.......... Participating MDOs to keep additional records............................... 38

Subdivision D—Overpayments of the indemnities                                               39

41.......... Recovery of overpayments.............................................................. 39

Subdivision E—Recovery of repayment or overpayment debt                             39

42.......... HIC may collect money from a person who owes money to a person 39

Division 4—Medical indemnity premium subsidy scheme                      42

43.......... Minister may formulate subsidy scheme......................................... 42

44.......... HIC may request information........................................................... 42

Division 5—Offences                                                                                                   44

45.......... Failing to give information................................................................ 44

46.......... Failing to notify................................................................................ 44

47.......... Failing to keep and retain records..................................................... 45

Division 6—Finance                                                                                                     46

48.......... Appropriation.................................................................................. 46

Division 7—Reinsurance contracts                                                                      47

49.......... Indemnity scheme payments disregarded for purposes of reinsurance contracts   47

Part 3—Contributions towards the cost of providing indemnities              48

Division 1—IBNR (incurred but not reported) indemnity contribution                 48

Subdivision A—Introduction                                                                                    48

50.......... Guide to the IBNR indemnity contribution provisions................... 48

Subdivision B—Who pays IBNR indemnity contribution                                   49

51.......... Who is liable to pay the IBNR indemnity contribution................... 49

52.......... Exemptions....................................................................................... 50

53.......... Comprehensive insurance cover determination................................ 51

Subdivision C—Determining amount of IBNR indemnity contribution           52

54.......... Annual subscription for base year.................................................... 52

Subdivision D—Annual reassessment of participating MDO’s IBNR exposure 53

55.......... Object of this Subdivision................................................................ 53

56.......... Process for annually reassessing IBNR exposure............................. 53

Division 2—Enhanced UMP indemnity contribution                                  55

Subdivision A—Introduction                                                                                    55

57.......... Guide to the enhanced UMP indemnity contribution provisions.... 55

Subdivision B—Who pays enhanced UMP indemnity contribution                  56

58.......... Who is liable to pay the enhanced UMP indemnity contribution.... 56

59.......... Exemptions....................................................................................... 57

Division 3—Administration of the medical indemnity contributions 58

Subdivision A—Introduction                                                                                    58

60.......... Guide to this Division...................................................................... 58

Subdivision B—Payment and collection of medical indemnity contributions 59

61.......... When medical indemnity contribution must be paid........................ 59

62.......... Deferral of payment day for medical indemnity contribution.......... 59

63.......... Medical indemnity contribution may be paid by instalments.......... 61

64.......... Discount for lump sum payment of medical indemnity contribution 62

65.......... Late payment penalty...................................................................... 64

66.......... Method of paying certain amounts.................................................. 65

Subdivision C—Refunds                                                                                           65

67.......... Refund of overpaid amounts............................................................ 65

Subdivision D—Recovery of contribution debt                                                      66

68.......... Recovery of contribution debt.......................................................... 66

69.......... HIC may collect money from a person who owes money to a person 66

70.......... Evidentiary certificates..................................................................... 68

Subdivision E—Information gathering processes                                                69

71.......... HIC may request information........................................................... 69

72.......... HIC must be notified of a change in circumstances etc.................... 70

Division 4—Offences                                                                                                   71

73.......... Failing to give information................................................................ 71

74.......... Failing to notify................................................................................ 71

Part 4—Miscellaneous                                                                                                        72

75.......... General administration of this Act and medical indemnity contribution legislation                72

76.......... Additional functions of the HIC....................................................... 72

77.......... Officers to observe secrecy.............................................................. 72

78.......... Act not to apply in relation to State insurance within a State......... 74

79.......... Regulations....................................................................................... 74

 



 

Medical Indemnity Act 2002

No. 132, 2002

 

 

 

An Act to make provision in relation to indemnities in relation to the practice of medical professions and vocations, and for related purposes

[ Assented to 19 December 2002 ]

The Parliament of Australia enacts: