Commonwealth Consolidated Acts

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MEDICAL INDEMNITY ACT 2002 - SECT 34ZJ

Amounts paid after payment of run - off cover indemnity

  (1)   This section applies if:

  (a)   an amount (the actual run - off cover amount ) of run - off cover indemnity has been paid in relation to an eligible run - off claim made against a medical practitioner; and

  (b)   another amount (not being an amount referred to in subsection   (5)) is paid to the practitioner, an MDO, a medical indemnity insurer or another person in relation to the incident or incidents to which the claim relates, or in relation to one or more other incidents; and

  (c)   the other amount was not taken into account in calculating the actual run - off cover amount; and

  (d)   if the other amount had been so taken into account, a lesser amount (the reduced run - off cover amount , which could be zero) of run - off cover indemnity would have been paid in relation to the liability.

  (2)   The amount overpaid is the amount by which the actual run - off cover amount exceeds the reduced run - off cover amount.

  (3)   If the Chief Executive Medicare has given an MDO or a medical indemnity insurer a notice under subsection   34ZL(1) in relation to the amount overpaid, the amount is a debt owed to the Commonwealth by the MDO or insurer.

  (4)   The amount overpaid may be recovered:

  (a)   by action by the Chief Executive Medicare against the MDO or insurer in a court of competent jurisdiction; or

  (b)   under section   42.

  (5)   This section does not apply to any of the following:

  (a)   an amount paid to an insurer by another insurer under a right of contribution;

  (b)   a payment of high cost claim indemnity;

  (c)   a payment of exceptional claims indemnity;

  (d)   an amount of a kind specified in the rules for the purposes of this paragraph.



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