Medical Indemnity Act 2002

A run‑off cover indemnity is payable to an MDO or a medical indemnity insurer under this section if:

an eligible run‑off claim is made that relates to an incident, or a series of related incidents, that occurred in the course of, or in connection with, a person’s practice as a medical practitioner; and

at the time the claim is first notified to the MDO or medical indemnity insurer, the person is a person to whom subsection 34ZB(2) applies; and

in the case of an MDO—the MDO makes, or is able to make, a payment in relation to the claim:

under an arrangement, with the MDO or someone else, under which the MDO is able to indemnify the person in relation to claims made by or against the person while he or she is a person to whom subsection 34ZB(2) applies; and

in the ordinary course of the MDO’s business; and

in the case of a medical indemnity insurer—the insurer makes, or is liable to make, a payment in relation to the claim under a contract of insurance under which the insurer is liable to indemnify the person in relation to claims made by or against the person while he or she is a person to whom subsection 34ZB(2) applies; and

the MDO or medical indemnity insurer was first notified of the claim, or of facts that might give rise to the claim on or after 1 July 2004; and

the MDO or medical indemnity insurer applies to the Chief Executive Medicare for the run‑off cover indemnity in accordance with section 36.

Paragraph (1)(c) does not apply to a payment that a medical indemnity insurer makes or is liable to make unless the payment is or would be made:

in relation to a claim made in relation to medical indemnity cover that section 26A or 26C of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003 requires the insurer to provide for the person; and

in the insurer’s ordinary course of business.