Commonwealth Numbered Regulations - Explanatory Statements

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MEDICAL INDEMNITY (IBNR INDEMNITY) CONTRIBUTION REGULATIONS 2003 2003 NO. 197

STATUTORY RULES 2003 No. 197

Issued by the authority of the Minister for Health and Ageing

Medical Indemnity (IBNR Indemnity) Contribution Act 2002

Medical Indemnity (IBNR Indemnity) Contribution Regulations 2003

The Incurred But Not Reported Liabilities (IBNR) Scheme is one of the elements of the new framework for medical indemnity enacted by the Parliament in 2002, under which the government will be funding the incurred but not reported liabilities (as at 30 June 2002) of those medical defence organisations that have not set aside money to cover such liabilities. The cost of that funding is to be recouped through contributions, over an extended period, by those medical practitioners who on 30 June 2000 were members of a participating medical defence organisation.

Section 7 of the Medical Indemnity (IBNR Indemnity) Contribution Act 2002 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Subsection 5(3) of the Act provides that the imposition day for a contribution year for a participating medical defence organisation is 1 August in the contribution year or such other day as is specified in the regulations as the imposition day for the contribution year.

The purpose of the regulations is to provide for the imposition day for the contribution year beginning 1 July 2003 to be 15 August 2003, for the purposes of the IBNR Scheme. The date has been chosen as regulations providing details of the IBNR Scheme are expected to be submitted for consideration at the Executive Council meeting on 14 August. It is undesirable for the imposition date to be earlier than the date on which final details of the IBNR Scheme will be available to medical practitioners who will be required to pay contributions.

The Act specifies no conditions that need to be met before the power to make the proposed regulations may be exercised.

The regulations commence on gazettal.