Better health and ageing for all Australians

Maternity Services Review

Indemnity insurance - protection for midwives Fact Sheet

More choice for women - Indemnity insurance for midwives

In this section:

PDF printable version of the Indemnity insurance fact sheet (PDF 23 KB)

If you have any difficulty in accessing the PDF, please contact pacdweb@health.gov.au for an alternate version to be sent to you.

How these reforms will help privately practising midwives

Privately-practising, eligible midwives will be able to access Australian Government supported professional indemnity insurance from 1 July 2010. Eligible midwives can purchase insurance from Medical Insurance Group Australia (MIGA).

Why this support is needed

Most midwives in Australia work as employees – usually in public or private hospitals, or as part of private medical practices and are covered by their employers’ insurance. Insurers do not currently offer a product for privately-practising midwives. There are a number of reasons - they represent a very small potential premium pool and there is a lack of accurate and up-to-date data on claims. Affordable, Government supported insurance will be made available to eligible privately practising midwives who wish to purchase it. This insurance will not, however, cover the planned delivery of babies in the home – for which there is a two year exemption from the requirement under the National Registration and Accreditation Scheme for midwives to hold professional indemnity insurance. It should be noted that the exemption relates only to the actual homebirth. That is, midwives in private practice will still need to have insurance for providing ante natal and post natal services, regardless of the birth setting.

What the reforms will mean for Australian families

Pregnant women and new mothers will have more choice in maternity care because the clients of eligible midwives will have the protection that comes from dealing with appropriately insured health professionals.

How midwives will qualify

Eligible midwives must be registered and meet some additional requirements set by the Nursing and Midwifery Board of Australia that will also enable them to access the new MBS and PBS arrangements.

How the reforms will work

Under a contract with the Government, MIGA will provide professional indemnity insurance. MIGA will pay the first $100,000 of each eligible claim; plus 20 cents in the dollar for claims costs between $100,000 and $2 million. The Government will contribute the remaining 80 cents in the dollar for claims costs between $100,000 and $2 million and will meet the full costs of claims over the $2 million threshold. Midwives will also continue to be covered after they leave the workforce (eg. when they retire) via a run-off cover arrangement.

At a glance

Cost to midwives
  • The premium for a midwife in full time practice is $7,500 per year.
Cost to Government
  • $25.2 million over four years.
When this will start
From 1 July 2010.

Who can apply for insurance?
  • Registered midwives who meet the requirements for endorsement as an eligible midwife from the Nursing and Midwifery Board of Australia.
How can I purchase insurance?