Insurance

Insurance in Retirement or Recess

Medical negligence claims can be made against a medical practitioner many years after the medical services were provided so it is important that Medical Practitioners have adequate protection after they cease practice. Run-off Cover is a form of cover generally taken out by professionals when they retire or stop practising for a significant period of time. 

Run-off cover can be provided through MDA National Insurance in one of two ways.

  1. Run-off Cover Scheme (ROCS)
  2. MDA National Insurance Professional Indemnity Policy – Run Off Category (refer to Professional Indemnity Insurance Policy Risk Category Guide)When considering Run-off Cover, you should be aware that the Australian Government has introduced a statutory Run-off Cover Scheme (ROCS) which means you may not need to purchase Run-off cover from us.   

Run-off Cover Scheme (ROCS) 

From 1 July 2004, the Australian Government introduced a Run-off Cover statutory indemnity scheme for doctors who practise in Australia. The scheme provides Run-off Cover to certain eligible doctors without the requirement for premiums to be paid. You are eligible for ROCS if you:

a) are aged 65 years or over and have retired permanently from remunerated private medical practice; 
b) are aged 65 years or over and have retired permanently from all remunerated medical practice; 
c) have not engaged in any remunerated private medical practice at any time during the preceding period of 3 years; 
d) have not engaged in any (including public sector) remunerated medical practice in the preceding 3 years;  
e) have ceased all remunerated (temporarily or permanently) medical practice because of maternity;  
f) have ceased all remunerated (temporarily or permanently) medical practice because of a permanent disability or 
g) have left Australia permanently having practiced in Australia on a Visa sub-class 422 or 457.

A medical practitioner’s estate will also be eligible for ROCS after the medical practitioners death. Further information on this scheme is available upon request or from the Department of Health at http://www.health.gov.au/