13When claim handling fee is payable for eligible run‑off claim

13 When claim handling fee is payable for eligible run‑off claim

A claim handling fee, of the amount worked out under section 14, is payable to a medical indemnity provider in respect of an eligible run‑off claim if: (a) a run‑off cover indemnity is payable or has been paid to the provider in relation to a payment (the underlying payment) made, or liable to be made, by the provider in relation to the claim (whether the underlying payment was made, or the liability to make it arose, before on or after 1 July 2020); and (b) the provider has made a complying application for payment of the fee; and (c) the provider complies with any request under section 34ZO of the Act relating to the fee.

Note 1: The underlying payment may be for legal and other expenses directly attributable to negotiations, arbitration or proceedings relating to the claim: see subsection 4(3) of the Act.

Note 2: Separate claim handling fees are payable for different underlying payments relating to the same claim, but only one claim handling fee is payable for each underlying payment.

Note 3: Part 5 deals with payment of claim handling fees.