Commonwealth Consolidated Acts Commonwealth Consolidated Acts(a) an amount (the indemnity payment ) has been paid, in relation to a liability of a medical practitioner, under:
(i) an arrangement with an MDO for indemnifying the practitioner in relation to claims that may be made against the practitioner in relation to incidents that occur or occurred in the course of, or in connection with, the practice of the practitioner's profession; or
(ii) a contract of insurance with a medical indemnity insurer that provides medical indemnity cover for the practitioner; and
(b) another amount (not being an amount referred to in subsection (2)) has been paid to the practitioner, MDO, medical indemnity insurer or another person in relation to the incident or incidents to which the liability relates; and
(c) the other amount was not taken into account in working out the amount of the indemnity payment; and
(d) if the other amount had been taken into account in working out the amount of the indemnity payment, a lesser amount would have been paid under the arrangement with the MDO, or under the contract of insurance, in relation to the liability;
then, for the purpose of calculating the amount of run - off cover indemnity (if any) that is payable in relation to a liability of the practitioner, the lesser amount is taken to have been the amount of the indemnity payment.
(2) This section does not apply to any of the following:
(a) an amount paid to a medical indemnity insurer by another insurer under a right of contribution;
(b) a payment of high cost claim indemnity;
(c) a payment of exceptional claims indemnity;
(d) an amount of a kind specified in the rules for the purposes
of this paragraph.