The Australian Government Medical Indemnity Package

This page provides information on the Medical Indemnity Package.

Page last updated: 03 June 2009

What is the Australian Government's medical indemnity package?

The Australian Government supports medical practitioners and their medical defence organisations through a package that will help ensure the continuation of Australia's medical indemnity insurance market.

The Australian Government's initial medical indemnity insurance framework package was announced by the Prime Minister on 23 October 2002. Subsequent enhancements to the package were announced on 19 March 2003, 23 May 2003, 6 June 2003, 10 October 2003, 17 December 2003, 13 May 2004, and 18 June 2004.

The measures contained in the package make the medical indemnity market more sustainable, gives doctors the certainty they need to continue practicing and to make medical indemnity cover more affordable for doctors.
The package includes:
  • the Premium Support Scheme (PSS), to help doctors whose medical indemnity costs exceed 7.5% of their gross private medical income. The PSS is a broader based scheme that has now replaced the Medical Indemnity Subsidy Scheme;
  • the High Cost Claims Scheme, to help medical indemnity insurers by funding 50% of the cost of medical indemnity insurance payouts between $300,000 and up to the limit of the doctor's cover;
  • the Exceptional Claims Scheme to provide protection for doctors against personal liability for claims that exceed their insurance of $20 million.;
  • the Run-off Cover Scheme to provide free run-off cover for eligible doctors who retire or leave the private medical workforce permanently and cover the cost of claims against them;
  • the IBNR Scheme, where the Government will cover the costs of claims from UMP's unfunded incurred but not reported liabilities (IBNRs), with UMP members contributing to these costs through the UMP Support Payment (the UMP Support Payment replaces the IBNR contribution); and
  • market reforms to medical indemnity insurance and better consumer protection for doctors who buy insurance.

Before taking action based on the information provided on this page, you need to consider your own situation and the relevant laws. You should seek advice that takes account of your particular set of circumstances.

The Department of Health and Ageing makes reasonable efforts to ensure that the information provided on this page is accurate. However, before relying on any information on this page, you should always check that the information is accurate, current and complete. The Department does not guarantee the accuracy, currency or completeness of the information on this page. The Department accepts no legal liability for the information on this page.

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