The Benefits of Medical Indemnity Insurance

Whether you’re a medical worker or a patient, there’s no doubt safety and security are of utmost importance to you. As such, your protective strategy is to consider getting the adequate insurance policy in which case you might be wondering what is medical indemnity insurance and how it can benefit you.

In simple terms, medical indemnity insurance is a kind of insurance that offers policies intended to cover both the doctor and the patient in the event of an unfortunate incident resulting from medical care. This insurance is required for medical registration in Australia for it is intended to safeguard consultants during the claims process, including any costs and legal fees incurred as a result of the claim. In circumstances with proven malpractice, the patient gets compensated.

What is the purpose of medical indemnity insurance?

All practising medical practitioners in Australia are required by law to be insured or otherwise indemnified for their complete scope of practice, whether through their employer’s indemnity arrangements or through their own medical indemnity insurer. This implies that all doctors in private practice are required to obtain their own personal practitioner indemnity insurance as it’s also required for AHPRA registration.

You must not practise in any field if your insurance or indemnity agreements clearly prohibit it. If you realise that you do not have enough professional indemnity insurance in place, you must tell the Medical Board within seven days, and make sure you know what is medical indemnity insurance and which one suits you best.

Selecting the Right Medical Indemnity

Not all insurance is identical, and neither are their premiums. Furthermore, even because you have been with one insurer for a long period does not imply that they are the best insurer for you. You are not required to continue with the same insurer, even if they have previously helped you, and you have the right to examine your alternatives and seek different insurers at any time.

However, all medical insurance policies cover personal liabilities that may arise as a result of your provision of healthcare (including legal costs) in the form of civil claims (that is, medical negligence claims). And, to a lesser extent, non-civil claims (such as coronial inquests, professional or disciplinary investigations, employment disputes) that are anything other than requests for compensation.

Medical Indemnity Insurance in Australia

All medical insurance plans normally include $20 million in coverage within the country; however, various policies apply different sub-limits to non-civil claims, thus particular coverage will vary between policies. Some policies, but not all, also cover costs for protecting your reputation (e.g., in the event of negative social media) and seeking or defending defamation claims, medicare audits, tax requirements, employment disputes, and statutory penalties (such as privacy breaches). All this plus loss of income if you are required to attend court.

Be aware that in certain circumstances, certain plans levy excesses/deductibles that must be paid if help is necessary under your insurance. If you are not otherwise insured, several medical indemnity insurances will cover the treatment of public hospital patients. If you perform medical services in another country, even if it is in the form of teaching or lecturing, you should verify with your insurance to see if you are covered.

Possible Protective Benefits

1. Confidentiality Breach

Covers a failure to maintain the confidentiality of information obtained during a professional consultation and the use of sensitive information to the client’s harm.

2. Failure to Perform Duties

Covers any violation of duty (including breach of confidentiality duty) in the insured’s supply of the professional services specified in the policy schedule.

3. Dishonesty or Deception

Similar to how some of the product liability policies work, this benefit covers third-party claims for damage allegedly caused by dishonest, fraudulent, criminal, or malicious conduct, or any violation of fiduciary responsibility committed by any person entitled to indemnification under this policy. There is no coverage for a loss caused by the insured.

4. Inquiry (Investigation)

Covers legal fees and expenditures incurred in representing the insured in any legal or quasi-legal investigation in which the insured is legally obligated to participate. The entity conducting the investigation (whether regulatory, licencing, or statutory) has legal authority over the insured.

5. Loss or Damage of Paperwork

Covers loss or damage to documents that were physically in the insured’s custody or control at the time of the loss or damage. Documents include electronically stored data, software, or computer programmes for or in relation to any computer system excluding bearer bonds, coupons, bank notes, currency notes, or negotiable instruments.

6. Reintroduction of the Policy Limit

When the policy limit is reached, it will be reinstated to allow for subsequent claims within the same policy period. As a result, the amount paid for all disputes covered by the policy during the policy period is limited to a maximum of twice the policy limit. The policy limit, on the other hand, is the maximum amount paid for any one claim or a series of claims stemming from the same act, error, or omission.

7. Unintended Defamation

Covers an insured person’s unintentional defamation, whether written or spoken.

8. Unintentional Intellectual Property Infringement

Under the Copyright Act, this policy covers inadvertent violations of intellectual property or moral rights by the insured or an insured person. Intentional violations or conduct that cause third-party loss with reckless disregard for the consequences are not covered.