(1)

An MDO or insurer must repay an amount to the Commonwealth if:

(a)

an IBNR indemnity has been paid to the MDO or insurer in relation to a claim against or by a person in relation to an incident; and

(b)

an amount is paid to the MDO or insurer in relation to the payment the MDO or insurer made in relation to the incident; and

(c)

that amount was not taken into account in calculating the amount of the IBNR indemnity paid to the MDO or insurer; and

(d)

the amount is not an amount referred to in subsection 21(4); and

(e)

the HIC gives the MDO or insurer a notice in relation to the amount under section 26.

(2)

The amount to be repaid is the amount obtained by applying the relevant participating MDO's unfunded IBNR factor to the amount referred to in paragraph (1)(b).

(3)

For the purposes of subsection (2), the relevant participating MDO is the MDO referred to in paragraph 16(1)(c) or 17(1)(c) as that paragraph applies for the purposes of determining whether the IBNR indemnity was payable to the MDO or insurer.

(4)

The amount to be repaid is a debt due to the Commonwealth.

(5)

The amount to be repaid may be recovered:

(a)

by action by the HIC against the MDO or insurer in a court of competent jurisdiction; or

(b)

by deduction from the amount of an indemnity scheme payment payable to the MDO or insurer; or

(c)

under section 42.

The total amount recovered must not exceed the amount to be repaid.