{"id":"F2020L00451","name":"Medical Indemnity Rules 2020","slug":"medical-indemnity-rules-2020","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":100988,"registerId":"commonwealth-F2020L00451-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Commonwealth payments","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":4},{"sectionNumber":"Division 1","sectionType":"division","heading":"IBNR indemnity scheme","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid","content":"#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.","sortOrder":6},{"sectionNumber":"Division 2","sectionType":"division","heading":"High cost claim indemnity scheme","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":"High cost claim threshold","content":"#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.","sortOrder":8},{"sectionNumber":"Division 3","sectionType":"division","heading":"Exceptional claims indemnity scheme","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":9},{"sectionNumber":"7","sectionType":"section","heading":"Circumstances for claim relating to overseas incident to be qualifying claim","content":"#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.","sortOrder":10},{"sectionNumber":"Division 4","sectionType":"division","heading":"Run‑off cover indemnity scheme","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":11},{"sectionNumber":"8","sectionType":"section","heading":"Persons against whom eligible run‑off claims are made","content":"#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.","sortOrder":12},{"sectionNumber":"9","sectionType":"section","heading":"Late payment penalty rate for recovery of overpaid run‑off cover indemnity","content":"#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.","sortOrder":13},{"sectionNumber":"10","sectionType":"section","heading":"Applicable interest rate for working out total run‑off cover credits","content":"#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.","sortOrder":14},{"sectionNumber":"Division 5","sectionType":"division","heading":"Allied health high cost claim indemnity scheme","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":15},{"sectionNumber":"11","sectionType":"section","heading":"Eligible insurers","content":"#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.","sortOrder":16},{"sectionNumber":"12","sectionType":"section","heading":"Allied health high cost claim threshold","content":"#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.","sortOrder":17},{"sectionNumber":"Division 6","sectionType":"division","heading":"Allied health exceptional claims indemnity scheme","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":18},{"sectionNumber":"13","sectionType":"section","heading":"Circumstances for claim relating to overseas incident to be qualifying claim","content":"#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.","sortOrder":19},{"sectionNumber":"Part 3","sectionType":"part","heading":"Universal cover obligation","content":"## Part 3—Universal cover obligation","sortOrder":20},{"sectionNumber":"14","sectionType":"section","heading":"Circumstances in which medical indemnity insurer may refuse professional indemnity cover","content":"#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.","sortOrder":21},{"sectionNumber":"15","sectionType":"section","heading":"Notice of refusal to enter into contract of insurance for professional indemnity cover","content":"#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.","sortOrder":22},{"sectionNumber":"16","sectionType":"section","heading":"Maximum amount of risk surcharge","content":"#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.","sortOrder":23},{"sectionNumber":"17","sectionType":"section","heading":"Amount of risk surcharge to be identified without GST in offer of insurance","content":"#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.","sortOrder":24},{"sectionNumber":"18","sectionType":"section","heading":"Records of refusals to provide professional indemnity cover","content":"#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.","sortOrder":25},{"sectionNumber":"19","sectionType":"section","heading":"Records of risk surcharges","content":"#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.","sortOrder":26},{"sectionNumber":"20","sectionType":"section","heading":"Matters to be reported annually","content":"#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).","sortOrder":27},{"sectionNumber":"Part 4","sectionType":"part","heading":"Payments towards the cost of providing indemnities","content":"## Part 4—Payments towards the cost of providing indemnities","sortOrder":28},{"sectionNumber":"21","sectionType":"section","heading":"Late payment penalty rate for run‑off cover support payment","content":"#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.","sortOrder":29},{"sectionNumber":"22","sectionType":"section","heading":"Methods of paying run‑off cover support payment or related late payment penalty","content":"#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.","sortOrder":30},{"sectionNumber":"Part 5","sectionType":"part","heading":"Application, transitional and saving provisions","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n  This instrument is the Medical Indemnity Rules 2020.\n\n#### 3 Authority\n\n  This instrument is made under the Medical Indemnity Act 2002.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n    (a) allied health profession;\n    (b) claim;\n    (c) incident;\n    (d) medical practitioner;\n    (e) private medical practice.\n  In this instrument:\n\n> Act means the Medical Indemnity Act 2002.\n\n> AFCA scheme has the meaning given by section 761A of the Corporations Act 2001.\n\n> Note: The AFCA scheme is an external dispute resolution scheme that is authorised under Part 7.10A of the Corporations Act 2001 and that is operated by AFCA (short for the Australian Financial Complaints Authority).\n\n> Commonwealth, State or Territory agency means:\n\n    (a) the Commonwealth; or\n    (b) a State; or\n    (c) a Territory; or\n    (d) an authority established under a law of the Commonwealth, a State or a Territory.\n\n> general interest charge rate has the same meaning as in section 8AAD of the Taxation Administration Act 1953.\n\n> Note: The general interest charge rate is a daily rate.\n\n> gross indemnity costs has the meaning given by the Medical Indemnity Regulations 2020.\n\n> GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.\n\n> premium period has the meaning given by the Medical Indemnity Regulations 2020.\n\n> Note: A premium period may vary from one insurer to another.\n\n## Part 2—Commonwealth payments\n\n### Division 1—IBNR indemnity scheme\n\n#### 5 Late payment penalty rate for recovery of amount paid to MDO or insurer after IBNR indemnity paid\n\n  (1) For the purposes of paragraph 27(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to an amount that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the amount became due and payable before 1 July 2020. Subitem 148(3) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the amount becomes due and payable.\n\n### Division 2—High cost claim indemnity scheme\n\n#### 6 High cost claim threshold\n\n  For the purposes of paragraph 29(1)(b) of the Act, $500,000 is specified.\n\n### Division 3—Exceptional claims indemnity scheme\n\n#### 7 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34E(1)(c) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of a medical profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n### Division 4—Run‑off cover indemnity scheme\n\n#### 8 Persons against whom eligible run‑off claims are made\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by any of subsections (2), (3) and (4) of this section.\n  Certain practitioners providing medical services free\n  (2) This subsection covers a medical practitioner who is providing medical services free of charge in the course of private medical practice and is covered by any of the following paragraphs:\n    (a) the practitioner has retired permanently from practice as a medical practitioner, apart from providing medical services free of charge in the course of private medical practice;\n    (b) the practitioner has retired permanently from providing medical services for payment in the course of private medical practice;\n    (c) the practitioner has not engaged in practice as a medical practitioner at any time during the preceding period of 3 years, apart from providing medical services free of charge in the course of private medical practice;\n    (d) the practitioner has not provided medical services for payment in the course of private medical practice at any time during the preceding period of 3 years;\n    (e) the practitioner has, apart from providing medical services free of charge in the course of private medical practice, ceased practice as a medical practitioner:\n    (i) because of maternity (within the meaning of subsection 34ZB(4A) of the Act); or\n    (ii) because of permanent disability (within the meaning of subsection 34ZB(4B) of the Act).\n  Practitioners no longer engaged in certain kinds of medical practice\n  (3) This subsection covers a medical practitioner who:\n    (a) was engaged in medical practice, other than:\n    (i) private medical practice; and\n    (ii) practice conducted wholly outside Australia and the external Territories; and\n    (b) either:\n    (i) has retired permanently from that medical practice; or\n    (ii) has not engaged in that medical practice at any time during the preceding period of 3 years.\n  Former temporary residents who used to practise in Australia\n  (4) This subsection covers a person who:\n    (a) was the holder of a temporary visa (within the meaning of the Migration Act 1958) that permitted the holder to work in Australia and that did not prohibit the holder from engaging in medical practice in Australia; and\n    (b) engaged in medical practice in Australia; and\n    (c) has permanently ceased medical practice in Australia; and\n    (d) no longer resides in Australia.\n\n#### 9 Late payment penalty rate for recovery of overpaid run‑off cover indemnity\n\n  (1) For the purposes of paragraph 34ZM(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a debt that remains wholly or partly unpaid after it becomes due and payable.\n\n> Note: This section does not apply if the debt became due and payable before 1 July 2020. Subitem 150(2) of Schedule 4 to the Medical and Midwife Indemnity Legislation Amendment Act 2019 provides for the rate in that case.\n\n  (2) The rate is the general interest charge rate for the day after the day the debt becomes due and payable.\n\n#### 10 Applicable interest rate for working out total run‑off cover credits\n\n  (1) For the purposes of subsection 34ZS(4) of the Act, the rate of interest, for a financial year, is the rate as worked out using the following formula:\n  ![Start formula start fraction index number for the latest March quarter over index number for the earlier March quarter end fraction end formula](image.002.png)\n  where:\n\n> index number, in relation to a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in respect of that quarter.\n\n> earlier March quarter, in respect of a financial year, means the index number for the March quarter before the latest March quarter in respect of that financial year.\n\n> latest March quarter, in respect of a financial year, means the index number for the March quarter before the beginning of the financial year.\n\n> Note: Example: For the 2020–21 financial year, the index number for the latest March quarter is the index number for the quarter ending March 2020 and the index number for the earlier March quarter is the index number for the quarter ending March 2019.\n\n  (2) A rate of interest is to be worked out to 3 decimal places.\n  (3) If a rate of interest worked out under subsections (1) and (2) would, if it were worked out to 4 decimal places, end in a number that is greater than 4, the rate is to be increased by 0.001.\n  (4) If a rate of interest worked out under subsections (1), (2) and (3) would be less than 1, the rate is to be increased to 1.\n  (5) Subject to subsection (6), if at any time (whether before or after the commencement of this section), the Australian Statistician publishes an index number for a quarter in substitution for an index number previously published by the Statistician for that quarter, the publication of the later index number is to be disregarded for the purposes of this section.\n  (6) If at any time (whether before or after the commencement of this section) the Australian Statistician changes the index reference period for the Consumer Price Index, regard is to be had, for the purposes of applying this section after the change takes place, only to index numbers published in terms of the new index reference period.\n\n### Division 5—Allied health high cost claim indemnity scheme\n\n#### 11 Eligible insurers\n\n  For the purposes of paragraph 34ZZ(a) of the Act, the following medical indemnity insurers are specified:\n    (a) Avant Insurance Limited ACN 003 707 471;\n    (b) Berkshire Hathaway Specialty Insurance Company ARBN 600 643 034;\n    (c) Guild Insurance Limited ACN 004 538 863;\n    (d) MDA National Insurance Pty Ltd ACN 058 271 417;\n    (e) Medical Insurance Australia Pty Ltd ACN 092 709 629;\n    (f) MIPS Insurance Pty Ltd ACN 089 048 359.\n\n#### 12 Allied health high cost claim threshold\n\n  For the purposes of paragraph 34ZZA(1)(b) of the Act, $500,000 is specified.\n\n### Division 6—Allied health exceptional claims indemnity scheme\n\n#### 13 Circumstances for claim relating to overseas incident to be qualifying claim\n\n  (1) For the purposes of paragraph 34ZZK(1)(d) of the Act, subsections (2) and (3) of this section specify different circumstances relating to a claim that relates to:\n    (a) an incident (the relevant incident) that occurs or occurred outside Australia and the external Territories at a time (the relevant time); or\n    (b) a series of related incidents (the relevant incidents) any of which occur or occurred outside Australia and the external Territories at a time (the relevant time).\n  (2) The circumstances are:\n    (a) the claim is or was made by a person who at the relevant time is or was an Australian citizen or a resident of Australia or an external Territory; and\n    (b) at the relevant time the person is or was:\n    (i) engaged in a sporting activity (as a participant, adjudicator, judge, referee or umpire or in a similar capacity); or\n    (ii) engaged in a cultural activity; or\n    (iii) undertaking official business for a Commonwealth, State or Territory agency; or\n    (iv) travelling with a person to whom any of the other subparagraphs of this paragraph applies; and\n    (c) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory accompanying the person in the course of, or in connection with, the practice by the practitioner of an allied health profession.\n  (3) Alternatively, the circumstances are:\n    (a) at the relevant time the practitioner against whom the claim is or was made is or was a permanent resident of Australia or an external Territory undertaking aid work outside Australia and the external Territories; and\n    (b) the relevant incident, or any of the relevant incidents, occurs or occurred in the course of, or in connection with, the undertaking of that aid work.\n\n## Part 3—Universal cover obligation\n\n#### 14 Circumstances in which medical indemnity insurer may refuse professional indemnity cover\n\n  (1) This section specifies circumstances for the purposes of paragraph 52A(f) of the Act (about the circumstances in which a medical indemnity insurer may refuse to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover).\n  (2) The circumstances are that the medical practitioner:\n    (a) has practised without being registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners; or\n    (b) is practising in breach of a limit (however described) on the registration or licensing of the practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners.\n\n#### 15 Notice of refusal to enter into contract of insurance for professional indemnity cover\n\n  (1) For the purposes of section 52B of the Act, this section specifies requirements for notification of a medical practitioner of a medical indemnity insurer’s refusal to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (2) The notification must include:\n    (a) the reasons for the refusal; and\n    (b) a statement that the medical practitioner may make a complaint about the refusal in accordance with the AFCA scheme.\n  (3) If, immediately before the refusal there was not a contract of insurance with the insurer providing professional indemnity cover for the practitioner, the notification must be made within 30 days of the insurer receiving all information reasonably required to decide whether to enter into such a contract.\n  (4) If, immediately before the refusal there was a contract (the existing contract) of insurance in force with the insurer providing professional indemnity cover for the practitioner, the notification must be made:\n    (a) as soon as practicable after the refusal; and\n    (b) if possible, at least 60 days before the expiry of the existing contract.\n\n#### 16 Maximum amount of risk surcharge\n\n  (1) For the purposes of paragraph 52C(3)(b) of the Act, this section specifies a method for working out the amount that must not be exceeded by a risk surcharge a medical indemnity insurer requires a medical practitioner to pay for a premium period, as part of the amount payable for professional indemnity cover provided by a contract of insurance with the practitioner.\n  (2) The amount is twice the practitioner’s gross indemnity costs relating to the contract and the premium period.\n\n#### 17 Amount of risk surcharge to be identified without GST in offer of insurance\n\n  For the purposes of subsection 52C(4) of the Act, the amount of the risk surcharge identified in an offer to enter into a contract of insurance to provide professional indemnity cover must exclude GST.\n\n#### 18 Records of refusals to provide professional indemnity cover\n\n  For the purposes of paragraph 53(1)(a) of the Act, a medical indemnity insurer must keep records of the following matters relating to a refusal by the insurer to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover:\n    (a) the date of the refusal;\n    (b) the identity of the medical practitioner;\n    (c) the reasons for the refusal, indicating both:\n    (i) the provision of section 52A of the Act and, if relevant, the provision of section 14 of this instrument, applying to exempt the insurer from the requirement in that section of the Act not to refuse to enter into the contract; and\n    (ii) the evidence of the existence of the circumstances that cause that provision to apply.\n\n#### 19 Records of risk surcharges\n\n  For the purposes of paragraph 53(1)(b) of the Act, a medical indemnity insurer must keep records of the following matters relating to a requirement by the insurer that a medical practitioner pay a risk surcharge:\n    (a) the date of the requirement;\n    (b) the reasons for the requirement, indicating the evidence of the matters described in paragraph 52C(1)(a) of the Act;\n    (c) the gross indemnity costs of the practitioner for the premium period to which the risk surcharge related;\n    (d) the amount of the risk surcharge.\n\n#### 20 Matters to be reported annually\n\n  (1) For the purposes of section 53B of the Act, this section specifies matters required by that section to be notified to the Secretary by a medical indemnity insurer that, in a financial year:\n    (a) refuses to enter into a contract of insurance with a medical practitioner to provide professional indemnity cover; or\n    (b) requires a medical practitioner to pay a risk surcharge.\n  (2) For the purposes of paragraph 53B(1)(b) of the Act, this subsection specifies the following:\n    (a) the number of refusals that:\n    (i) are made in the financial year by the medical indemnity insurer; and\n    (ii) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made);\n    (b) the number of occasions in the financial year on which a medical practitioner withdrew an invitation made by the practitioner to the medical indemnity insurer for the insurer to offer to enter into a contract of insurance with the practitioner to provide professional indemnity cover.\n  (3) For the purposes of paragraph 53B(2)(b) of the Act, this subsection specifies the number of requirements to pay risk surcharge that:\n    (a) are made in the financial year by the medical indemnity insurer; and\n    (b) are the subjects of complaints made in accordance with the AFCA scheme before the notification is made (whether or not the complaints are resolved before the notification is made).\n\n## Part 4—Payments towards the cost of providing indemnities\n\n#### 21 Late payment penalty rate for run‑off cover support payment\n\n  (1) For the purposes of paragraph 65(2)(a) of the Act, this section specifies the rate for calculating late payment penalty relating to a run‑off cover support payment that remains wholly or partly unpaid after it becomes due and payable.\n  (2) The rate is the general interest charge rate for the day after the day the payment becomes due and payable.\n\n#### 22 Methods of paying run‑off cover support payment or related late payment penalty\n\n  For the purposes of subsection 66(4) of the Act, an amount referred to in subsection 66(1) or (3) of the Act must be paid by one of the following methods:\n    (a) BPAY;\n    (b) direct debit;\n    (c) credit card.\n\n## Part 5—Application, transitional and saving provisions\n\n### Division 1—Temporary measure relating to eligible run‑off claims\n\n#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":31},{"sectionNumber":"23","sectionType":"section","heading":"Eligible run‑off claims","content":"#### 23 Eligible run‑off claims\n\n  (1) For the purposes of paragraph 34ZB(2)(f) of the Act, subsection 34ZB(2) of the Act applies to the persons covered by subsection (2) of this section.\n  (2) Subject to subsection (3) of this section, this subsubsection covers a person if subsection 34ZB(2) of the Act would apply to the person (disregarding this section) were it not for practice as a medical practitioner that the person begins to engage in during the period:\n    (a) beginning on 1 April 2020; and\n    (b) ending on 21 September 2023.\n  (3) If, at the end of 21 September 2023, the person is still engaged in practice as a medical practitioner, subsection (2) of this section ceases to cover the person at the end of that day.","sortOrder":33}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Rules mainly implement operational detail required by the Medical Indemnity Act 2002 (thresholds, interest calculations, notification and recordkeeping). However they also include two items that materially change practical scope compared with a bare implementation: (1) A temporary expansion of run‑off claim eligibility for persons who begin practice between 1 April 2020 and 21 September 2023 (s 23) — this provision broadens who can qualify for run‑off cover credits for that cohort; and (2) a prescriptive list of eligible allied‑health insurers (s 11) and fixed dollar thresholds ($500,000 at ss 6 and 12) which concretely determine which insurers and claims are within scheme coverage. Those elements do more than merely clarify the Act: they set substantive eligibility and participation rules that alter who receives Commonwealth support and which firms participate in allied‑health schemes."},"complexity_factors":["Multiple cross‑references to the Medical Indemnity Act 2002 and to the Medical Indemnity Regulations 2020 (heavy reliance on external definitions)","Several distinct indemnity schemes covered (IBNR, high cost, exceptional claims, run‑off, allied‑health variants) increasing structural complexity","Conditional overseas incident tests with alternative branches for claimant/practitioner status (ss 7 and 13)","Interest calculation formula tied to March quarter CPI with rounding rules and a 1% floor (s 10) — numeric precision required","Different timing rules for notification depending on whether an existing contract was in force (s 15)","Recordkeeping and annual reporting requirements with specific items to be recorded (ss 18–20)","Named list of eligible allied‑health insurers (6 named entities) — precision and maintenance risk (s 11)","Temporary transitional provision with a defined date window and a cutoff behaviour (s 23)","Repetitive structure across medical/allied‑health Parts which requires careful navigation to avoid missing parallel rules","Several provisions reference external rates (general interest charge) or definitions (gross indemnity costs), requiring consultation of other instruments to apply the Rules"],"plain_english_summary":"**What this instrument does (mechanics)\n\n- Names the instrument \"Medical Indemnity Rules 2020\" and says it is made under the Medical Indemnity Act 2002 (introductory provisions).\n\n- Defines or cross‑refers to key terms used in the Rules (for example: AFCA scheme, general interest charge rate, gross indemnity costs, GST, premium period) and relies on definitions in the Act and the Medical Indemnity Regulations (s 4).\n\n- Sets rates, thresholds and calculation rules used by the Commonwealth when making or recovering payments under the Act:\n  - Late‑payment penalty for IBNR (incurred but not reported) recoveries: the general interest charge (GIC) rate for the day after the amount becomes due (s 5).\n  - High cost claim threshold: $500,000 (s 6).\n  - Late‑payment penalty for overpaid run‑off indemnities and for run‑off support payments: GIC (ss 9, 21).\n  - Method for calculating the interest rate applied to run‑off cover credits: CPI‑based formula using March quarter All Groups CPI (weighted eight‑capital‑city index), worked to 3 decimal places with a rounding increment rule and a 1% minimum (s 10).\n\n- Specifies which overseas incidents qualify for Commonwealth exceptional‑claims cover (instances where the claimant is an Australian citizen/resident engaged in sporting/cultural/official activity or travelling with such a person, with the practitioner a permanent resident accompanying them; alternatively incidents while the practitioner is doing aid work) (s 7). A parallel rule applies for allied‑health practitioners (s 13).\n\n- Defines who is an eligible subject of run‑off cover claims (categories of practitioners who may be covered when run‑off claims are made against them): e.g. practitioners who have retired, those who have not practised for 3 years (except for unpaid voluntary work), those who have permanently ceased practice and left Australia after having been a temporary resident, and special rules for those providing free services (s 8).\n\n- Lists the insurers eligible under the allied‑health high cost claim indemnity scheme (six named insurers) (s 11) and sets the allied‑health high cost threshold at $500,000 (s 12).\n\n- Sets rules for the universal cover obligation (insurer behaviour and procedural requirements):\n  - Circumstances in which an insurer may refuse to provide professional indemnity cover (practising without required registration/licence or in breach of registration limits) (s 14).\n  - What a refusal notice must contain and timing for giving that notice (must state reasons, inform practitioner of right to complain to AFCA; timing differs if there was an existing contract) (s 15).\n  - Limit on a risk surcharge: it cannot exceed twice the practitioner's gross indemnity costs for the premium period (s 16), and offers must state the surcharge excluding GST (s 17).\n  - Record‑keeping obligations for refusals and risk‑surcharge decisions (what to record) and annual reporting items to the Secretary (numbers of refusals, complaints, withdrawals, and risk‑surcharge complaints) (ss 18–20).\n\n- Prescribes permitted payment methods for run‑off cover support payments and related penalties: BPAY, direct debit or credit card (s 22).\n\n- Includes a temporary, time‑limited measure that treats people who begin a period of practice between 1 April 2020 and 21 September 2023 as eligible for run‑off coverage in circumstances where they would otherwise be excluded — but that temporary cover ends for a person if they are still practising at the end of 21 September 2023 (s 23).\n\n\nWho this affects and why it matters\n\n- Medical indemnity insurers: the Rules constrain what insurers must do (record keeping, notification timing, maximum surcharge formula), what they may refuse coverage for (s 14), and in allied‑health schemes which insurers are eligible (s 11). Insurers are also affected by administrative rules (payment methods, interest calculation, late payment penalties) that change cashflows and accounting treatment.\n\n- Medical practitioners (including allied‑health practitioners where relevant): the Rules set thresholds and eligibility tests that affect whether Commonwealth indemnity assistance applies (high cost thresholds, exceptional claims for overseas incidents, run‑off eligibility), limit how much insurers can surcharge a practitioner (s 16), and ensure practitioners receive reasons and information on objection routes when cover is refused (s 15).\n\n- The Commonwealth and its agencies: the Rules set how the Commonwealth calculates interest and late penalty rates for its payments and recoveries (ss 5, 9, 10, 21), and narrow/widen which claims attract Commonwealth support.\n\n- Claimants of overseas incidents and practitioners doing aid, sporting or cultural work overseas: the Rules clarify when overseas incidents are treated as qualifying for exceptional‑claims indemnity (ss 7, 13).\n\n\nPurpose claims and practical trade‑offs (stated then tested)\n\n- The Rules present themselves as operational settings needed to implement the Act: numeric thresholds ($500,000), interest rules tied to CPI, lists of eligible insurers, time windows for a temporary run‑off expansion, and procedural safeguards (notice and recordkeeping). Those are explicit in the text (see ss 6, 10, 11, 12, 23, 15, 18–20).\n\n- Costs and incentives: the Rules cap risk surcharges at twice a practitioner's gross indemnity costs (s 16). That compresses the insurer's ability to price individual risk by imposing an administratively calculated ceiling, which may shift pricing behaviour (insurers may raise base premiums, tighten underwriting, or decline riskier practitioners where permitted (s 14)). Recordkeeping and reporting requirements (ss 18–20) impose administrative costs on insurers but create a paper trail for accountability.\n\n- Opportunity costs and implementation risks: the CPI‑based interest formula (s 10) and the requirement to use particular CPI quarters creates a predictable, formulaic approach but requires timely access to published CPI numbers and creates a small rounding and minimum floor complexity (3 decimal places, a +0.001 rule and 1% floor). Mistakes in applying the formula could create accounting or reconciliation disputes. The temporary run‑off eligibility window (s 23) requires insurers and administrators to track start dates of practice and could create edge cases at the expiry boundary.\n\n- Compliance burden and bureaucratic discretion: most rules are prescriptive and mechanical (fixed thresholds, named insurers, GIC usage), reducing unstated discretion. Discretion remains in the parent Act's decision points (for example, whether a particular foreign incident qualifies under the factual criteria in ss 7/13), which may create appeals to AFCA where practitioners or claimants disagree (s 15 requires AFCA to be pointed out).\n\n- Effects on private choice, competition and prices: specifying eligible allied‑health insurers (s 11) and limiting surcharge amounts (s 16) have distributional effects. Listing only six insurers constrains which insurers can access allied health high‑cost support under the Act; that concentrates benefits to those firms (concentrated benefit) while imposing uniform rules on all insurers (diffuse compliance cost). The cap on surcharges may reduce insurer ability to price for very high individual risk, possibly leading to narrower underwriting or more refusals where lawful (s 14), affecting practitioners' ability to obtain cover from some insurers.\n\n\nConcentrated benefits and potential risks to watch (mechanisms, not judgments)\n\n- Named‑insurer list (s 11): concentrated benefit for those six insurers — they are the only specified participants for the allied‑health high‑cost scheme. That creates a clear administrative boundary but may favour their market position for allied‑health business.\n\n- Temporary run‑off expansion (s 23): materially expands the class of persons who can qualify for run‑off cover credits for a defined period (practitioners who began practice 1 Apr 2020–21 Sep 2023). This is a targeted, time‑limited scope change that shifts potential Commonwealth exposure for run‑off claims happening later.\n\n- Caps and procedural requirements (ss 16–20): limit insurer pricing freedom and impose reporting obligations designed to produce information for the Secretary and AFCA; these increase administrative costs and reduce some forms of pricing discretion.\n\n\nKey sections to look up in practice (quick reference)\n\n- Interest/penalty rates: ss 5, 9, 21 (GIC); s 10 (CPI formula for run‑off credits).\n- Thresholds: s 6 (high cost claims) and s 12 (allied‑health high cost claims) — both $500,000.\n- Overseas incident qualifying conditions: s 7 (medical practitioners) and s 13 (allied health).\n- Run‑off eligibility categories: s 8 and the temporary extension in s 23.\n- Universal cover obligations (refusal, notice, records, surcharge cap): ss 14–20.\n- Eligible insurers for allied health: s 11.\n\n\nOverall summary sentence\n\nThe Medical Indemnity Rules 2020 supply the operational detail the Medical Indemnity Act 2002 needs: numeric thresholds and eligibility tests, interest and penalty calculation rules, lists of eligible allied‑health insurers, procedural and recordkeeping requirements for insurers, payment methods, and a temporary, time‑limited expansion of run‑off eligibility for practitioners who began practice during 1 April 2020–21 September 2023 (see ss 4–23)."},"kimi_summary":{"_metrics":{"completionTokens":693},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation remains within its original scope as a technical implementation instrument under the Medical Indemnity Act 2002. The 2020 version consolidates previous rules and adds a temporary COVID-19 provision for run-off claims, but does not expand beyond the established framework of medical indemnity support schemes."},"complexity_factors":["Multiple cross-references to the Medical Indemnity Act 2002 and other legislation (Corporations Act, Taxation Administration Act, Migration Act)","Nested conditional logic in sections 7 and 13 with multiple alternative circumstances for overseas claims","Formula-based calculations for interest rates with rounding rules (3 decimal places, conditional adjustments)","Extensive defined terms that rely on external regulations (Medical Indemnity Regulations 2020)","Temporal limitations and transitional provisions (COVID-19 measure with specific start and end dates)","Duplicative structure with parallel schemes for medical practitioners and allied health professionals","Specific record-keeping requirements with multiple data points for each refusal and surcharge"],"plain_english_summary":"This law sets Commonwealth-backed rules for medical indemnity schemes that protect doctors and allied health professionals against negligence claims, including coverage for late-reported incidents, very high-cost claims (over $500,000), run‑off protection for retired or inactive clinicians, and certain exceptional or overseas cases. It requires insurers to offer universal cover except for unregistered or condition-breaching practitioners, allows limited risk surcharges (capped at twice gross indemnity), mandates record‑keeping and annual reporting, and thus affects practitioners, insurers and patients."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/medical-indemnity-rules-2020","history":"/api/acts/medical-indemnity-rules-2020/history","analysis":"/api/acts/medical-indemnity-rules-2020/analysis","conflicts":"/api/acts/medical-indemnity-rules-2020/conflicts","importantCases":"/api/acts/medical-indemnity-rules-2020/important-cases","documents":"/api/acts/medical-indemnity-rules-2020/documents"}}