Circumstances in which section applies

(1)

This subsection applies to a person if:

(a) under a contract of insurance (the relevant contract ), the person provides medical indemnity cover for a health care professional; and
(b) the health care professional is:
(i) a medical practitioner; or
(ii) a registered health professional prescribed by the regulations.

Offence

(2)

A person (the insurer ) commits an offence if:

(a) subsection (1) applies to the insurer; and
(b) the relevant contract is entered into, comes into effect or is renewed at a particular time on or after 1 July 2003; and
(c) the maximum amount payable by the insurer under the relevant contract in relation to a single compensation claim made against the health care professional would, but for subsection (4), be less than the minimum cover amount applicable at that time.

Penalty: Imprisonment for 12 months.

(3)

Subsection (2) does not apply if it would be reasonable to assume, at the time the relevant contract is entered into, comes into effect or is renewed, that every health care incident to which the compensation claim would relate would be one occurring outside Australia and the external Territories.

Note: A defendant bears an evidential burden in relation to the matter in this subsection (see subsection 13.3(3) of the Criminal Code ).

Maximum amount payable for single claim

(4)

If:

(a) subsection (1) applies to a person (the insurer ); and
(b) the relevant contract is entered into, comes into effect or is renewed at a particular time on or after 1 July 2003; and
(c) a compensation claim is made against the health care professional; and
(d) an amount is payable by the insurer under the relevant contract in relation to the compensation claim; and
(e) the maximum amount payable by the insurer under the relevant contract in relation to the compensation claim would, but for this subsection, be less than the minimum cover amount applicable at that time;

the maximum amount payable by the insurer under the relevant contract in relation to the compensation claim is the minimum cover amount applicable at that time (instead of the maximum amount provided for in the relevant contract).

(5)

Subsection (4) does not apply if every health care incident to which the compensation claim relates is one occurring outside Australia and the external Territories.

(6)

To avoid doubt, subsection (4) applies whether or not the insurer is convicted of an offence against subsection (2).