A guide to medical indemnity insurance in Australia

Medical indemnity insurance is a form of liability insurance that indemnifies medical practitioners against financial loss from actions that are brought against them as a result of the performance of their professional medical duties.

Medical practitioners who undertake private medical practice in Australia purchase medical indemnity insurance from private sector underwriters. Six private sector underwriters were operating in Australia at 30 June 2019. They were :

  1. Avant Insurance Limited owned by Avant Mutual Group Limited (Avant),
  2. MIPS Insurance Pty Ltd owned by Medical Indemnity Protection Society (MIPS),
  3. MDA National Insurance Pty Ltd owned by MDA National (MDAN),
  4. Medical Insurance Australia Pty Ltd owned by Medical Insurance Group Australia (MIGA),
  5. Guild Insurance (Guild) and
  6. Berkshire Hathaway Specialty Insurance Company (BHSI) with TEGO.

Claims are lodged against a medical practitioner when there is a breach, or perceived breach, of a professional standard of care when treating a patient. According to the Australian Government Actuary, in a recent report, roughly 2,000 negligence claims might be expected annually in respect of private medical practice in Australia, however there can be substantial variation from year to year. A number of claims will be successfully defended.

The Medical Board of Australia requires all registered medical practitioners who provide health care or medical opinions in respect of the physical or mental health of any person, to ensure all aspects of their medical practice are covered by professional indemnity insurance (PII), or some alternative form of medical indemnity insurance cover that complies with the Board’s registration standard for professional indemnity insurance. The Board may audit a practitioner’s renewal declarations to ensure that they are complying with the Board’s registration standards and their obligations under the National Law.

Experien General Insurance Services (Experien) is a national insurance brokerage firm. We help many doctors in the private sector with their medical indemnity insurance, and we give Doctors the valuable alternative to dealing directly (on their own) with insurers. We research the market to help find better coverage, pricing or other factors.  If you engage us for a review, then we will not charge you if don’t decide to use us any further.  A review is complimentary and without any obligations.

When doctors renew their indemnity insurance, many consider using Experien to review their policies. By comparing insurers, we have highlighted major differences in the pricing and features of different policies.  If you want to change insurers or take out coverage with an insurer we work with, then we can do all the work for you.

General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Consider our disclosure documents, which include our FSG and each insurer’s Product Disclosure Statements (PDS) for insurance products. Please click here for our Financial Services Guide, which includes important regulatory disclosures regarding our license, remuneration and complaints handling.