What is Indemnity Insurance?

Medical Indemnity Insurance (MI) is mandatory,It is important to clarify with the insurance
and good practice, for every doctor working incompany what the insurance does and does not
English Speaking countries.cover, and if there are any exclusions. And
WHO PROVIDES MI COVER?always, read the fine print and make sure you
Every country has different arrangements forunderstand the MI policy, and that it is appropriate
this, and in some countries like the USA, youfor your needs.
should check the credit rating of your MITo protect you as a doctor, and ensure an
company carefully, as many of them are facingaccurate MI application process, it is necessary to
solvency issues. In Canada, medical indemnity isestablish what indemnity insurance is held by each
covered by a general pool, similar to self insuranceemployer, and where there is doubt, an extract
needed by doctors before they start practicingfrom the certificate of currency should be
and due to market regulations, these companiesrequested.
are far less likely to be insolvent than their USHOW MUCH DOES MI COST?
counterparts.In Australia, the cost of the premium depends on
To take the Australian example:the mix between public and private that the
The first level of cover is provided by the (public)doctor has: the more income earned in the
hospitals, employers or practice, the second byprivate sector, the more the annual premium will
insurance organisations such as MDAVcost. It also depends on the category of
Note that the MI information in each country isspecialization, procedural vs. non procedural etc.
very different. For accurate information on MI inFor this reason, and the fact that all insurers
other countries, please contact the releventmeasure risk slightly differently, the premium
organisations.would be determined on a case by case basis, by
WHAT IS COVERED BY A MI POLICY?the insurance company.
In Australia, in the public sector, the hospital'sThe need to have run off cover for three years
insurance will cover the cost of the doctor gettingafter the position ends is standard throughout the
sued-the claim itself- but will not cover legal andworld, some experts recommend it should be
other costs associated with defending the claim.maintained for longer, for example if the doctor
Therefore the insurance from organisations suchhas been practicing as an obstetrician.
as MDAV would cover the "gap".in the case ofIn addition to the indemnity insurance, doctors
private hospitals, the insurance should cover themay be advised by third party experts about
whole amount of the claim plus fees, as theother means of protection of assets, such as
hospital itself doest not routinely provide insuranceappropriate company structures.
- although some of the larger ones may - it isNote that the MI information in each country is
best not to assume.very different.