Document ID: chunk:federal_register_of_legislation:C2024C00534:section:3
Version: federal_register_of_legislation:C2024C00534
Segment Type: section
Provision Reference: s 3
Character Range: 15133–18066

3  Objects of this Act and the medical indemnity payment legislation

Availability of medical services
 (1) An object of this Act is to contribute towards the availability of medical services in Australia by providing Commonwealth assistance to support access by medical practitioners to arrangements that indemnify them for claims arising in relation to their practice of their medical professions.
 (2) The Commonwealth provides that assistance under this Act by:
 (a) meeting part of the costs of large settlements or awards paid by organisations that indemnify medical practitioners (but only for claims notified on or after 1 January 2003); and
 (aa) meeting the amounts by which settlements and awards exceed insurance contract limits, if those contract limits meet the Commonwealth's threshold requirements; and
 (ab) meeting the amounts payable in relation to certain claims (notified on or after 1 July 2004) against medical practitioners who are no longer in private medical practice; and
 (b) providing for a subsidy scheme to help certain medical practitioners meet the cost of their indemnity arrangements; and
 (c) meeting the cost associated with certain IBNR liabilities of organisations that indemnify medical practitioners to the extent to which those organisations had not made adequate provision for those liabilities as at 30 June 2002.
Note: The acronym "IBNR" is used in this Act for "incurred but not reported".
 (3) The Commonwealth provides further assistance in relation to members and former members of UMP under a Medical Indemnity Agreement referred to in the Medical Indemnity Agreement (Financial Assistance—Binding Commonwealth Obligations) Act 2002.
 (3A) This Act also supports access by medical practitioners to arrangements that indemnify them for claims arising in relation to their practice of their medical professions by limiting when medical indemnity insurers can refuse to provide medical indemnity cover.
 (4) Another object of this Act (together with the medical indemnity payment legislation) is to allow the Commonwealth to recover the costs of providing the assistance referred to in paragraph (2)(ab) by requiring payments from medical indemnity insurers.

Availability of other health services
 (5) Another object of this Act is to contribute towards the availability of certain health services in Australia by providing Commonwealth assistance to support access by persons who practise allied health professions to arrangements that indemnify them for claims arising in relation to their practices.
 (6) The Commonwealth provides that assistance under this Act by:
 (a) meeting part of the costs of large settlements or awards paid by organisations that indemnify persons who practise allied health professions; and
 (b) meeting the amounts by which settlements and awards exceed insurance contract limits, if those contract limits meet the Commonwealth's threshold requirements.