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Medical Indemnity Amendment Bill 2004
Schedule 1 Exemptions

   

Medical Indemnity Act 2002

1  Subsection 4(1) (note at the end of the definition of medical indemnity cover )

Omit “Note”, substitute “Note 1”.

2  Subsection 4(1) (at the end of the definition of medical indemnity cover )

Add:

Note 2:       This definition does not apply to references to medical indemnity cover in subsections 52(3B) and (3C): see subsection 52(3D).

3  Paragraph 52(2)(c)

Omit “if”, substitute “the contribution year is the financial year starting on 1 July 2003 and”.

4  After paragraph 52(2)(c)

Insert:

                    (ca)  in a case where the person was a medical practitioner during the income period for the contribution year—the person’s gross Medicare billable income for the income period was less than $5,000; or

                    (cb)  in a case where the person was a health professional during, but was not a medical practitioner during, the income period for the contribution year—the person’s gross medical income for the income period was less than $5,000; or

5  After paragraph 52(2)(d)

Insert:

                    (da)  the number of contribution years for the MDO in respect of which:

                              (i)  the person has been liable to pay a UMP support payment; or

                             (ii)  would have been so liable apart from an exemption under this section;

                            exceeds the total period (expressed as a number of years) for which the person was, prior to 1 July 2000, a member of that MDO; or

                    (db)  the number of contribution years for the MDO in respect of which the person has been liable to pay a UMP support payment, or would have been so liable apart from an exemption under this section, is more than 6; or

Note:       Deferral of a payment day under section 62 will not affect the operation of this paragraph, because the UMP support payment will still relate to the same contribution year despite the deferment.

6  After subsection 52(3)

Insert:

          (3A)  For the purposes of paragraphs (2)(ca) and (cb), gross medical income , gross Medicare billable income and income period have the same meanings as in the Medical Indemnity (UMP Support Payment) Act 2002 .

          (3B)  For the purposes of paragraph (2)(da):

                     (a)  if the total period referred to in that paragraph is not a whole number of years, round the number up to the nearest whole number of years; and

                     (b)  if:

                              (i)  a person has been, prior to 1 July 2000, a member of an indemnity provider (other than the MDO referred to in that paragraph) that has, prior to 1 July 2000, provided medical indemnity cover to the person; and

                             (ii)  the MDO referred to in that paragraph has (whether before, on or after 1 July 2000) taken over the indemnity provider;

                            the total period referred to in that paragraph, and in paragraph (a) of this subsection, is taken to include the total period for which the indemnity provider, prior to 1 July 2000, provided medical indemnity cover to the person.

          (3C)  The reference in subparagraph (3B)(b)(ii) to an MDO having taken over an indemnity provider is a reference to the MDO having assumed some or all of the financial responsibility for claims:

                     (a)  that are claims in relation to incidents that occurred in the course of, or in connection with, the practice of a medical profession by the person in question; and

                     (b)  with which the indemnity provider would, but for that assumption of responsibility, have been concerned because of the indemnity provider having provided medical indemnity cover to the person.

          (3D)  In subsections (3B) and (3C), and in this subsection:

indemnity provider means a body that provided medical indemnity cover.

provided medical indemnity cover has the meaning given by the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 .

           (3E)  A reference in paragraph (2)(da) or (db) to a liability to pay a UMP support payment includes a reference to a liability, before the commencement of that paragraph, to pay an IBNR indemnity contribution.

7  At the end of subsection 53(2)

Add:

             ; and (e)  the person has given to the HIC a certificate by the insurer, or (if there is more than one insurer) by each of the insurers, that paragraphs (a), (b), (c) and (d) apply in relation to the person.