Medical Indemnity (IBNR Indemnity) Contribution Amendment Act 2003
No. 120, 2003
An Act to amend the Medical Indemnity (IBNR Indemnity) Contribution Act 2002, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Medical Indemnity (IBNR Indemnity) Contribution Act 2002
Medical Indemnity (IBNR Indemnity) Contribution Amendment Act 2003
No. 120, 2003
An Act to amend the Medical Indemnity (IBNR Indemnity) Contribution Act 2002, and for related purposes
[Assented to 5 December 2003]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Medical Indemnity (IBNR Indemnity) Contribution Amendment Act 2003.
2 Commencement
This Act is taken to have commenced on 1 July 2003.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Medical Indemnity (IBNR Indemnity) Contribution Act 2002
1 Subsection 5(3)
Repeal the subsection, substitute:
(3) The imposition day for a contribution year for a participating MDO is:
(a) for the contribution year that starts on 1 July 2003:
(i) 1 March 2004; or
(ii) such other day as is specified in the regulations as the imposition day for the contribution year; and
(b) for a later contribution year:
(i) 1 August in the contribution year; or
(ii) such other day as is specified in the regulations as the imposition day for the contribution year.
2 Before subsection 6(1)
Insert:
(1A) The amount of the IBNR indemnity contribution imposed on a participating member of a participating MDO for the contribution year for the MDO that starts on 1 July 2003 is the lesser of:
(a) the applicable percentage of the member’s annual subscription for the base year; and
(b) $1,000.
(1B) The amount of the IBNR indemnity contribution imposed on a participating member of a participating MDO for the contribution year for the MDO that starts on 1 July 2004 is the amount worked out by adding:
(a) half of the applicable percentage of the member’s annual subscription for the base year; and
(b) the lesser of:
(i) $500; and
(ii) half of the applicable percentage of the member’s annual subscription for the base year.
3 Subsection 6(1)
After “the MDO”, insert “that starts on or after 1 July 2005”.
[Minister’s second reading speech made in—
House of Representatives on 6 November 2003
Senate on 26 November 2003]
Overview
The Medical Indemnity (IBNR Indemnity) Contribution Amendment Act 2003, enacted by the Parliament of Australia, was introduced to amend the Medical Indemnity (IBNR Indemnity) Contribution Act 2002. The original Act was designed to address issues related to the insurance of medical indemnity risks not yet incurred (IBNR), but it was found to have certain gaps and needed adjustments to ensure a more stable and predictable financial environment for medical indemnity schemes. This amendment aimed to fine-tune the contribution mechanisms and implementation timelines to better support the participating medical defence organisations (MDOs) and their members. The Act was designed to provide clarity and stability to the financial contributions required for IBNR indemnity, with the overarching policy objective of ensuring that medical indemnity funds are managed effectively to protect both medical practitioners and patients.
Scope and Application
The Medical Indemnity (IBNR Indemnity) Contribution Amendment Act 2003 amends the Medical Indemnity (IBNR Indemnity) Contribution Act 2002 to refine the imposition of IBNR (Incurred But Not Reported) indemnity contributions on participating members of medical defence organisations (MDOs). This Act applies to participating MDOs and their members who are subject to the IBNR indemnity contribution. The geographic reach of this Act is nationwide, applying to all MDOs and their members within Australia. The Act specifies the imposition days for contribution years, adjusting the timing for the year commencing 1 July 2003 and establishing a new schedule for subsequent years, which can be further specified by regulations. Additionally, the Act delineates the specific contribution amounts for the years commencing 1 July 2003 and 1 July 2004, with a gradual increase in the contribution amount for the latter year. The application of this Act can be extended or restricted through subordinate instruments, such as regulations, which may specify additional details or exemptions not covered in the primary Act.
Key Provisions
The Medical Indemnity (IBNR Indemnity) Contribution Amendment Act 2003 amends the Medical Indemnity (IBNR Indemnity) Contribution Act 2002. The Act introduces new provisions for the imposition of IBNR (Incurred But Not Reported) indemnity contributions on medical defence organisations (MDOs) and their members, effective from 1 July 2003. Key changes include the introduction of specific imposition dates for contribution years (section 1), the definition of the amount of the IBNR indemnity contribution for participating members of MDOs for specific years (section 2), and the amendment of the calculation of contributions for MDOs that start on or after 1 July 2005 (section 3).
The Act imposes obligations on participating MDOs and their members to comply with the new provisions regarding the imposition dates and contribution amounts. Participating MDOs must ensure they are aware of the specific imposition days for different contribution years as specified in the Act and any subsequent regulations (section 1). Members of participating MDOs must pay the IBNR indemnity contributions calculated according to the new provisions for the specified contribution years (section 2). MDOs starting on or after 1 July 2005 must adhere to the amended calculation of contributions as outlined in the Act (section 3).
Failure to comply with the provisions of the Act may result in legal consequences. While the Act does not explicitly state the penalties for non-compliance, breaches of legislative requirements typically attract civil or criminal penalties under general laws or specific provisions of related statutes. The exact penalties can vary depending on the nature and severity of the breach but may include fines, enforcement actions, or other legal remedies as prescribed by the relevant authorities. It is crucial for MDOs and their members to adhere to the requirements to avoid potential legal repercussions.