10Level 1 and Level 2 claim thresholds

10 Level 1 and Level 2 claim thresholds

Level 1 claim threshold for claims that are not out‑of‑hospital claims (1) The Level 1 claim threshold for a claim that relates to an incident that is not an out‑of‑hospital incident is: (a) $100,000; or (b) such other amount as is specified in the Rules for the purposes of this paragraph.

Note: Claims cannot be aggregated to reach the Level 1 claim threshold: see paragraph 11(3)(j).

No Level 1 claim threshold for out‑of‑hospital claims (1A) There is no Level 1 claim threshold for a claim that relates to an out‑of‑hospital incident. Level 2 claim threshold (2) The Level 2 claim threshold is: (a) $2 million; or (b) such other amount as is specified in the Rules for the purposes of this paragraph.

Note: Claims cannot be aggregated to reach the Level 2 claim threshold: see paragraph 11(3)(j).

(3) A Rule specifying an amount as the Level 1 claim threshold (or changing the amount previously so specified) only applies in relation to a payment made or payable under a contract of insurance entered into, or renewed, after the Rule commences. (4) A Rule specifying an amount as the Level 2 claim threshold (or changing the amount previously so specified) only applies in relation to a contract of insurance entered into, or renewed, at the time or after the Rule commences. (5) A Rule changing the Level 1 claim threshold or Level 2 claim threshold (which could be the threshold originally applicable under subsection (1) or (2), or that threshold as already changed by Rules) commences on the date specified in the Rules, which must be the date on which the Rules are entered on the Federal Register of Legislation or a later day.