EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Health, Disability and Ageing and
Minister for Disability and the National Disability Insurance Scheme
Medical Indemnity Amendment (Eligible Insurers) Rules 2026
Authority
The Medical Indemnity Amendment (Eligible Insurers) Rules 2026 (Amendment Rules) are made under Section 80 of the Medical Indemnity Act 2002 (Act).
The Act establishes a framework for the provision of Australian Government support for medical indemnity arrangements for eligible privately practising medical practitioners and allied health professionals.
The Medical Indemnity Rules prescribe matters required or permitted by the Act, or necessary or convenient to give effect to the Act.
Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Purpose
The Medical Indemnity Amendment (Eligible Insurers) Rules 2026 amends the Medical Indemnity Rules 2020 to update the list of insurers eligible for the Allied Health High Cost Claim Indemnity Scheme (AHHCCS) and Allied Health Exceptional Claims Scheme (AHECS), by adding Tego Insurance Pty Ltd to the prescribed list.
This is a technical administrative amendment necessary to reflect current participants in the medical indemnity insurance market. Its objective is to ensure that insurers who actively, or will in the future, underwrite allied health professionals can access government subsidies for eligible high-cost claims. This change operates prospectively. Tego Insurance will only be eligible to seek Commonwealth contributions for eligible claims made against allied health professionals that are notified to the insurer after the date of registration of these Amendment Rules.
Because participation in the AHHCCS and AHECS requires insurers to be explicitly prescribed under the Rules, this amendment updates the list to reflect current market participants. The AHHCCS and AHECS, authorised under the Medical Indemnity Act 2002 and described in the Medical Indemnity Rules 2020, assist medical indemnity insurers with the costs of large claims made against allied health professionals. This scheme, in conjunction with other targeted schemes under the Commonwealth medical indemnity program, maintains stability in the indemnity insurance market and indirectly works to reduce premiums for allied health professionals. This contributes to the primary objective of the Medical Indemnity Act 2002 of ensuring accessible and affordable healthcare through supporting indemnity arrangements.
Consultation
The Department of Health, Disability and Ageing consulted with Services Australia, Tego Insurance, and Berkshire Hathaway Specialty Insurance Company (BHSIC). Services Australia was consulted regarding the administrative and operational implementation of adding a new insurer to the scheme. Tego Insurance was consulted regarding their entry into the allied health market and their compliance with eligibility criteria.
BHSIC was consulted to clarify their ongoing status. BHSIC confirmed that they continue to actively underwrite allied health professionals. Therefore, BHSIC remains listed in the Rules as an active participant. All stakeholders support the amendment to explicitly add Tego Insurance to the Rules while maintaining BHSIC's listing.
Regulatory Impact
The Amendment Rules do not have any regulatory impact.
Details of the Medical Indemnity Amendment (Eligible Insurers) Rules 2026
Section 1 – Name
This section provides that the instrument is the Medical Indemnity Amendment (Eligible Insurers) Rules 2026.
Section 2 – Commencement
This section provides that the instrument commences on the day after it is registered.
Section 3 – Authority
This section provides that the instrument is made under Section 80 of the Medical Indemnity Act 2002.
Section 4 - Schedules
This section provides that each instrument that is specified in a Schedule to the Amendment Rules is amended or repealed as set out in the applicable items in the Schedule concerned, and that any other item in a Schedule has effect according to its terms.
SCHEDULE 1 — AMENDMENTS
Item 1 — At the end of section 11
This item adds a new paragraph (g) to section 11 of the Medical Indemnity Rules 2020 to include Tego Insurance Pty Ltd (ACN 608 505 960) in the list of eligible insurers. This addition ensures that Tego Insurance, as an active, or future, insurer underwriting these allied health professionals, can access government subsidies for eligible high cost and exceptional claims.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Medical Indemnity Amendment (Eligible Insurers) Rules 2026
This Disallowable Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Disallowable Legislative Instrument
The Medical Indemnity Amendment (Eligible Insurers) Rules 2026 amends the Medical Indemnity Rules 2020 to update the list of insurers eligible for the Allied Health High Cost Claim Indemnity Scheme (AHHCCS) and Allied Health Exceptional Claims Scheme (AHECS), by adding Tego Insurance Pty Ltd to the prescribed list.
This is a technical administrative amendment necessary to reflect current participants in the medical indemnity insurance market. Its objective is to ensure that insurers who actively, or will in the future, underwrite allied health professionals can access government subsidies for eligible high-cost claims. This change operates prospectively. Tego Insurance will only be eligible to seek Commonwealth contributions for eligible claims made against allied health professionals that are notified to the insurer after the date of registration of these Amendment Rules.
Because participation in the AHHCCS and AHECS requires insurers to be explicitly prescribed under the Rules, this amendment updates the list to reflect current market participants. The AHHCCS and AHECS, authorised under the Medical Indemnity Act 2002 and described in the Medical Indemnity Rules 2020, assist medical indemnity insurers with the costs of large claims made against allied health professionals. This scheme, in conjunction with other targeted schemes under the Commonwealth medical indemnity program, maintains stability in the indemnity insurance market and indirectly works to reduce premiums for allied health professionals. This contributes to the primary objective of the Medical Indemnity Act 2002 of ensuring accessible and affordable healthcare through supporting indemnity arrangements.
Human rights implications
This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.