Medical Indemnity Act 2002

This section applies if:

an amount (the actual run‑off cover amount) of run‑off cover indemnity has been paid in relation to an eligible run‑off claim made against a medical practitioner; and

another amount (not being an amount referred to in subsection (5)) is paid to the practitioner, an MDO, a medical indemnity insurer or another person in relation to the incident or incidents to which the claim relates, or in relation to one or more other incidents; and

the other amount was not taken into account in calculating the actual run‑off cover amount; and

if the other amount had been so taken into account, a lesser amount (the reduced run‑off cover amount, which could be zero) of run‑off cover indemnity would have been paid in relation to the liability.

The amount overpaid is the amount by which the actual run‑off cover amount exceeds the reduced run‑off cover amount.

If the Chief Executive Medicare has given an MDO or a medical indemnity insurer a notice under subsection 34ZL(1) in relation to the amount overpaid, the amount is a debt owed to the Commonwealth by the MDO or insurer.

The amount overpaid may be recovered:

by action by the Chief Executive Medicare against the MDO or insurer in a court of competent jurisdiction; or

under section 42.

This section does not apply to any of the following:

an amount paid to an insurer by another insurer under a right of contribution;

a payment of high cost claim indemnity;

a payment of exceptional claims indemnity;

an amount of a kind specified in the rules for the purposes of this paragraph.