For registered medical professionals within Australia, medical indemnity insurance is mandatory. And so it should be - a doctor’s professional reputation is integral to their ability to practice. Unfortunately, however, not all medical indemnity policies are created equal. A sound policy takes careful consideration and close consultation to develop and must be ready to respond to the unique risk profile of its holder.
Right now, many policies held by Australian practitioners have been placed without adequate consideration or advice, which means in a time of need, the policyholder is often left uncovered and exposed to significant risk; financial and reputational.
Many doctors deal directly with an MDO (Medical Defence Organisation) when securing their indemnity insurance, and it is common for them to retain the same provider throughout their career. Such loyalty is not simply attributed to policy satisfaction, but a perceived difficulty associated with changing providers. As we outline below, however, medical professionals should tread carefully when it comes to indemnity insurance, and quality advice plays a major role in this.
WHY IS MEDICAL INDEMNITY INSURANCE ADVICE IMPORTANT?
Each MDO has a unique approach to both appraising the risk of its customers (doctors) and servicing them during a claim. From our experience at Honan, it is not easy for doctors to access clear and transparent information relating to all policy options available to them. Partnering with a broker helps to ensure all key information has been disclosed, and the policy offers robust, truly purpose-fit coverage for their role. Sadly, when challenged with this request, direct providers will typically refer their clients to the terms and conditions of the policy.
At Honan, we partner with medical indemnity insurers to provide outstanding protection and service for specialists. They are all backed by Government schemes including the Department of Health’s Run-Off Cover Scheme, High-Cost Claims Scheme, and offer ‘first time in’ private practice discounts, which remain with the doctor in the instance of transferring policies or moving providers.
PREMIUMS FOR MEDICAL PROFESSIONALS - CHANGES AFOOT
There are several upcoming industry changes set to impact premiums for doctors. As the Federal Government looks to reduce its support of certain schemes, our Honan team is here to provide clients with clear information, options, and advice.
Our clients in the Australian medical space have benefited greatly from our services which include:
Complimentary market analysis – often identifying areas for improvement
Advice on individual circumstances as a specialist
No additional charges on insurance premiums
Access to Honan Private Client team for personal insurance
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Honan Insurance Group Pty Ltd (Australian Financial Services Licence no. 246749, ABN67 005 372 396) is an insurance broker acting as agent for insureds and intending insureds. Honan is not an insurer. The information on this website has been prepared without taking into account your objectives, financial situation or needs. Any advice provided on this website is general advice only. Before making a decision to purchase an insurance policy, please read the relevant Product Disclosure Statement to make sure the policy is right for you. Insurance cover is subject to policy terms and conditions including policy limits and exclusions.
From time to time, Honan may act under a binder arrangement with an insurer. When this happens, Honan is authorised by the insurer to issue certain insurance policies on the insurer’s behalf. When Honan does this it acts as the agent for the insurer and not for any insured person. We will let you know when we are acting under a binder. You can view the Product Disclosure Statements for the insurance policies we issue under a binder arrangement here. A copy of the Target Market Determination for each policy is also available on this website.
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