Midwife Professional Indemnity Scheme
In the 2009-10 Budget, the Government announced the 'Improving Maternity Services Package'. The package provides for the introduction of Medicare supported services to provide greater choice for women during pregnancy, birthing and postnatal maternity care, including the provision of professional indemnity for midwives.
The Midwife Professional Indemnity Scheme (MPIS) includes a Commonwealth contribution initiative designed to assist with claims made against eligible midwives and encourage the provision of indemnity insurance policies for private independent midwives.
The Midwife Professional Indemnity Scheme provides financial assistance to eligible Insurers who provide indemnity to eligible midwives.
Level 1 Commonwealth Contributions (Claims Scheme) - Effective 1 July 2010
For each Level 1 claim, the Insurer will pay the first $100 000.
For each claim over $100 000 the Australian Government, via the Insurer, will pay 80% of the cost that exceeds the threshold, up to a ceiling of $2 million.
For example:
A claim of $500 000 exceeds the threshold by $400 000, the Insurer pays the first $100 000 and 20% of the remaining $400 000, the Commonwealth pays 80% of $400 000.
Level 2 Commonwealth Contributions (Claims Scheme) - Effective 1 July 2010
For each Level 2 claim, the Insurer will pay the first $100 000.
For each claim that exceeds $2 million, the Australian Government, via the Insurer, will pay at the Level 1 rate for the first $2 million, plus 100% of the cost of the claim above the threshold.
For example:
A claim of $2 800 000 exceeds the $2 million threshold by $800 000, the Insurer pays the first $100 000 and 20% of $1 900 000, the Commonwealth pays 80% of $1 900 000 and all of the remaining $800 000 over the $2 million threshold.
Run-off Cover (ROC) Commonwealth Contributions (Claims Scheme) - Effective 1 July 2010
Under the Run-off Cover scheme eligible claims will be paid by the Australian Government. A levy placed on total premium costs is payable by the Insurer annually. Levies collected will fund midwife Run-off Cover claims.
ROC is designed to assist an eligible Insurer in respect of claims made against midwives who:
- are retired
- were not engaged in private practice during the preceding 3 years
- have a permanent disability
- are deceased
- are on maternity leave, or
- have permanently left private midwifery practice in Australia
ROC Commonwealth contributions reimburse the Insurer 100% of an eligible claim.
Contact details
If you require additional assistance please contact Medicare Australia's Midwife Professional Indemnity Contact Centre Monday–Friday during business hours on:
Phone: 1800 813 167
Email: mpis.program.support@medicareaustralia.gov.au
Last updated: 24 August, 2012