9When claim handling fee is payable for claim for which IBNR indemnity payable

9 When claim handling fee is payable for claim for which IBNR indemnity payable

A claim handling fee, of the amount worked out under section 10, is payable to an MDO if: (a) an IBNR indemnity is payable or has been paid to the MDO in relation to a payment (the underlying payment) made, or liable to be made, in relation to a claim against or by a person (whether the underlying payment was made, or the liability to make it arose, before on or after 1 July 2020); and (b) the MDO has made a complying application for payment of the fee; and (c) the MDO complies with any request under section 27B 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.