Document ID: chunk:federal_register_of_legislation:C2024C00534:section:21
Version: federal_register_of_legislation:C2024C00534
Segment Type: section
Provision Reference: s 21
Character Range: 54651–56193

21  Amount of the IBNR indemnity
 (1) The amount of the IBNR indemnity is the adjusted amount of the payment determined in accordance with subsection (2).
Note: In certain circumstances, an amount may be repayable under section 24.

 (2) The adjusted amount of the payment is the amount obtained by deducting from the amount the MDO or insurer pays, or is liable to pay, the amount, or the sum of the amounts, that are:

 (a) paid; or
 (b) payable and liquidated at the time the amount of the IBNR indemnity is worked out;
to the MDO or insurer in relation to the payment the MDO or insurer makes or is liable to make.
 (3) Without limiting subsection (2), the amounts to be deducted under that subsection include:
 (a) any high cost claim indemnity that is paid or payable to the MDO or insurer in relation to the payment the MDO or insurer makes or is liable to make; and
 (b) any amount that is paid or payable to the MDO or insurer because of a right to which the MDO or insurer is subrogated; and
 (c) the amount of any payment specified in the rules.
 (4) The following amounts are not to be deducted under subsection (2):
 (a) any amount that is paid or payable to the MDO or insurer by way of an insurer‑to‑insurer payment;
 (b) any amount that is paid or payable to the MDO or insurer by way of membership subscription or insurance premium;
 (c) any amount that is payable under this Division;
 (d) the amount of any payment specified in the rules.

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