Document ID: chunk:federal_register_of_legislation:F2024C01011:reg:5
Version: federal_register_of_legislation:F2024C01011
Segment Type: reg
Provision Reference: reg 5
Character Range: 7692–9157

5  Simplified outline of this instrument

      Various amounts are payable by the Chief Executive Medicare to MDOs and medical indemnity insurers (together called medical indemnity providers) if they apply for them and meet certain conditions.
      Claim handling fees are payable to MDOs for claims for which IBNR indemnities are payable to the MDOs. Those fees are generally 5% of the indemnities.
      Claim handling fees are payable to medical indemnity providers for eligible run‑off claims for which run‑off cover indemnity is paid. Those fees are generally 5% of the indemnities.
      Amounts are payable to medical indemnity insurers that incur costs complying with the requirement in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 to provide run‑off cover to certain medical practitioners. Those amounts depend on the number of practitioners covered.
      To help certain medical practitioners meet the costs of purchasing medical indemnity, the premium support scheme in Part 6 provides that amounts are payable to medical indemnity insurers with contracts of insurance providing professional indemnity cover for the practitioners. Those amounts are worked out in different ways, depending on the practitioners' circumstances.
      Amounts are payable to medical indemnity insurers to help them meet the costs of administering the premium support scheme. Those amounts depend on the number of practitioners covered.