Medical Indemnity Act 2002 (Cth)

Medical Indemnity Act 2002 No. 132, 2002 Compilation No. 23 Compilation date: 14 October 2024 Includes amendments: Act No. 38, 2024 About this compilation This compilation This is a compilation of the Medical Indemnity Act 2002 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Preliminary 1 Short title 2 Commencement 3 Objects of this Act and the medical indemnity payment legislation 4 Definitions 5 Medical defence organisation (MDO) 6 Member of an MDO 7 Incident‑occurring based cover 8 IBNR exposure of an MDO 8A Eligible related claims 8B Treatment of deductibles for the exceptional claims indemnity scheme and the allied health exceptional claims indemnity scheme 9 External Territories Part 2—Commonwealth payments Division 1—IBNR (incurred but not reported) indemnity scheme Subdivision A—Introduction 10 Guide to the IBNR indemnity provisions Subdivision C—Incidents covered by the IBNR indemnity scheme 14 Incidents covered by the IBNR indemnity scheme Subdivision D—IBNR indemnity 15 IBNR indemnity may be payable under either section 16 or 17 16 IBNR indemnity for payment made by MDO or insurer 17 IBNR indemnity for MDO or insurer in external administration 18 Clarification of circumstances in which IBNR indemnity payable 19 Exceptions 20 Payment partly related to treatment of public patient in public hospital 21 Amount of the IBNR indemnity Subdivision E—Recovery of amount paid to MDO or insurer after IBNR indemnity paid 24 Recovery if certain amounts paid to MDO or insurer after IBNR indemnity paid 25 MDO or insurer to inform Chief Executive Medicare of certain amounts 26 Chief Executive Medicare to notify MDO or insurer of repayable amount 27 Penalty imposed if an amount is repaid late Subdivision F—Regulations may provide for payments 27A Regulations may provide for payments in relation to IBNR claims 27B The Chief Executive Medicare may request information Subdivision G—IBNR exposure 27C Process for annually reassessing IBNR exposure Division 2—High cost claim indemnity scheme Subdivision A—Introduction 28 Guide to the high cost claim indemnity provisions 29 High cost claim threshold Subdivision B—High cost claim indemnity 30 Circumstances in which high cost claim indemnity payable 31 Aggregating amounts paid or payable by an MDO and insurer 32 Exceptions 33 Payment partly related to treatment of public patient in public hospital 34 Amount of high cost claim indemnity Subdivision C—Regulations may provide for payments 34AA Regulations may provide for payments in relation to high cost claims 34AB The Chief Executive Medicare may request information Division 2A—Exceptional claims indemnity scheme Subdivision A—Introduction 34A Guide to the exceptional claims indemnity provisions 34D Interaction with high cost claim indemnity scheme and run‑off cover indemnity scheme Subdivision B—Certification of qualifying claims 34E When may the Chief Executive Medicare certify a claim as a qualifying claim? 34F What is the relevant threshold? 34G Setting the exceptional claims termination date 34H Application for a qualifying claim certificate 34I Time by which an application must be decided 34J Obligation to notify the Chief Executive Medicare if information is incorrect or incomplete 34K Revocation and variation of qualifying claim certificates Subdivision C—Exceptional claims indemnity 34L When is an exceptional claims indemnity payable? 34M Qualifying liabilities 34N Treatment of a claim that partly relates to a public patient in a public hospital 34O Treatment of a claim that relates to a series of incidents some of which occurred after the exceptional claims termination date 34P The amount of exceptional claims indemnity that is payable 34Q How exceptional claims indemnity is to be applied 34R Who is liable to repay an overpayment of exceptional claims indemnity? Subdivision D—Payments that would have reduced the amount paid out under the contract of insurance 34S Amounts paid before payment of exceptional claims indemnity 34T Amounts paid after payment of exceptional claims indemnity 34U Obligation to notify the Chief Executive Medicare that amount has been paid 34V The Chief Executive Medicare to notify of amount of debt due 34W Penalty imposed if an amount is repaid late Subdivision E—Regulations may provide for payments 34X Regulations may provide for payments in relation to exceptional claims 34Y The Chief Executive Medicare may request information Subdivision F—Miscellaneous 34Z Modifications and exclusions Division 2B—Run‑off cover indemnity scheme Subdivision A—Introduction 34ZA Guide to the run‑off cover indemnity provisions 34ZB Eligible run‑off claims Subdivision B—Run‑off cover indemnities 34ZC Circumstances in which run‑off cover indemnities are payable 34ZD MDOs and medical indemnity insurers that are Chapter 5 bodies corporate 34ZE Aggregating amounts paid or payable by an MDO and medical indemnity insurer 34ZF Clarification of circumstances in which run‑off cover indemnities are payable 34ZG Exceptions 34ZH Amount of run‑off cover indemnities Subdivision C—Payments that would have reduced the amount of run‑off cover indemnity 34ZI Amounts paid before run‑off cover indemnity 34ZJ Amounts paid after payment of run‑off cover indemnity 34ZK Obligation to notify the Chief Executive Medicare that amount has been paid 34ZL The Chief Executive Medicare to notify of amount of debt due 34ZM Penalty imposed if an amount is repaid late Subdivision D—Regulations may provide for payments 34ZN Regulations may provide for payments in relation to run‑off claims 34ZO The Chief Executive Medicare may request information Subdivision E—Effect of terminating the run‑off cover indemnity scheme 34ZP Commonwealth's obligations on termination of the run‑off cover indemnity scheme 34ZQ Affected medical practitioners 34ZR Payments in relation to affected medical practitioners 34ZS Total run‑off cover credits 34ZT Medical indemnity insurers must provide information attributing run‑off cover support payments Subdivision F—Miscellaneous 34ZU Chief Executive Medicare must be notified of a person ceasing to be covered by the run‑off cover indemnity scheme 34ZV Invoices for medical indemnity cover 34ZW Reports on the run‑off cover indemnity scheme 34ZX Modifications and exclusions Division 2C—Allied health high cost claim indemnity scheme Subdivision A—Introduction 34ZY Guide to the allied health high cost claim indemnity provisions 34ZZ Eligible MDOs and eligible insurers 34ZZA Allied health high cost claim threshold Subdivision B—Allied health high cost claim indemnity 34ZZB Circumstances in which allied health high cost claim indemnity payable 34ZZC Aggregating amounts paid or payable by an MDO and insurer 34ZZD Exceptions 34ZZE Payment partly related to treatment of public patient in public hospital 34ZZF Amount of allied health high cost claim indemnity Subdivision C—Regulations may provide for payments 34ZZG Regulations may provide for payments in relation to allied health high cost claims 34ZZH The Chief Executive Medicare may request information Division 2D—Allied health exceptional claims indemnity scheme Subdivision A—Introduction 34ZZI Guide to the allied health exceptional claims indemnity provisions 34ZZJ Interaction with allied health high cost claim indemnity scheme Subdivision B—Certification of qualifying allied health claims 34ZZK When may the Chief Executive Medicare certify a claim as a qualifying allied health claim? 34ZZL What is the relevant allied health threshold? 34ZZM Setting the allied health termination date 34ZZN Application for a qualifying allied health claim certificate 34ZZO Time by which an application must be decided 34ZZP Obligation to notify the Chief Executive Medicare if information is incorrect or incomplete 34ZZQ Revocation and variation of qualifying allied health claim certificates Subdivision C—Allied health exceptional claims indemnity 34ZZR When is an allied health exceptional claims indemnity payable? 34ZZS Qualifying allied health liabilities 34ZZT Treatment of a claim that partly relates to a public patient in a public hospital 34ZZU Treatment of a claim that relates to a series of incidents some of which occurred after the allied health termination date 34ZZV The amount of allied health exceptional claims indemnity that is payable 34ZZW How allied health exceptional claims indemnity is to be applied 34ZZX Who is liable to repay an overpayment of allied health exceptional claims indemnity? Subdivision D—Payments that would have reduced the amount paid out under the contract of insurance 34ZZY Amounts paid before payment of allied health exceptional claims indemnity 34ZZZ Amounts paid after payment of allied health exceptional claims indemnity 34ZZZA Obligation to notify the Chief Executive Medicare that amount has been paid 34ZZZB The Chief Executive Medicare to notify of amount of debt due 34ZZZC Penalty imposed if an amount is repaid late Subdivision E—Regulations may provide for payments 34ZZZD Regulations may provide for payments in relation to allied health exceptional claims 34ZZZE The Chief Executive Medicare may request information Subdivision F—Miscellaneous 34ZZZF Modifications and exclusions Division 3—Administration of the indemnity schemes Subdivision A—Introduction 35 Guide to this Division Subdivision B—Applications for, and payment of, indemnity scheme payments 36 Application for IBNR indemnity, high cost claim indemnity, run‑off cover indemnity or allied health high cost claim indemnity 37 Payment date for IBNR indemnity, high cost claim indemnity, run‑off cover indemnity or allied health high cost claim indemnity 37A Application for exceptional claims indemnity or allied health exceptional claims indemnity 37B Payment date for exceptional claims indemnity or allied health exceptional claims indemnity Subdivision C—Information gathering and record keeping 38 Chief Executive Medicare may request information 39 Main record keeping obligations 40 Certain insurers and MDOs to keep additional records Subdivision D—Overpayments of the indemnities 41 Recovery of overpayments Subdivision E—Recovery of repayment or overpayment debt 42 Chief Executive Medicare may collect money from a person who owes money to a person Division 4—Medical indemnity premium subsidy scheme 43 Regulations may provide for subsidy scheme 44 Chief Executive Medicare may request information 44B Chief Executive Medicare may notify run‑off cover credits Division 5—Offences 45 Failing to give information 46 Failing to notify 47 Failing to keep and retain records 47A Failing to include required information in invoices Division 6—Finance 48 Appropriation Division 7—Reinsurance contracts 49 Indemnity scheme payments disregarded for purposes of reinsurance contracts Division 8—Monitoring 50 Insurers may be required to provide information Part 2A—Universal cover obligation Division 1—Introduction 51 Guide to the universal cover obligation provisions 51A Winding up of medical indemnity insurer Division 2—Requirements in relation to providing professional indemnity cover 52 Division applies for the purposes of the AFCA scheme 52A Universal cover obligation 52B Medical indemnity insurer to notify of refusal 52C Risk surcharge requirements 52D Medical indemnity insurer may be required to offer interim cover until complaint is finalised Division 3—Records, reporting and information 53 Records 53A Failing to keep and retain records 53B Medical indemnity insurer must report annually 53C Failing to report 53D Secretary may request information 53E Failing to give information Part 3—Payments towards the cost of providing indemnities Division 2—Run‑off cover support payment Subdivision A—Introduction 57 Guide to the run‑off cover support payment provisions Subdivision B—Who pays run‑off cover support payment 58 Who is liable to pay the run‑off cover support payment 59 Exemptions Division 3—Administration of the run‑off cover support payments Subdivision A—Introduction 60 Guide to this Division Subdivision B—Payment and collection of run‑off cover support payments 61 When run‑off cover support payment must be paid 65 Late payment penalty 66 Method of paying certain amounts Subdivision C—Refunds 67 Refund of overpaid amounts Subdivision D—Recovery of payment debt 68 Recovery of payment debt 69 Chief Executive Medicare may collect money from a person who owes money to a person 70 Evidentiary certificates Subdivision E—Information gathering processes 71 Chief Executive Medicare may request information 72 Chief Executive Medicare must be notified of a change in circumstances etc. Division 4—Offences 73 Failing to give information 74 Failing to notify Part 4—Miscellaneous 75 General administration of this Act and medical indemnity payment legislation 76 Additional functions of the Chief Executive Medicare 76A Chief Executive Medicare may use computer programs to take administrative action 76B Delegation by Secretary 77 Officers to observe secrecy 78 Act not to apply in relation to State insurance within a State 78A Evaluation of medical indemnity market 79 Regulations 80 Rules Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act to make provision in relation to indemnities in relation to the practice of medical professions and vocations, and for related purposes Part 1—Preliminary 1 Short title This Act may be cited as the Medical Indemnity Act 2002. 2 Commencement This Act commences, or is taken to have commenced, on 1 January 2003. 3 Objects of this Act and the medical indemnity payment legislation Availability of medical services (1) An object of this Act is to contribute towards the availability of medical services in Australia by providing Commonwealth assistance to support access by medical practitioners to arrangements that indemnify them for claims arising in relation to their practice of their medical professions. (2) The Commonwealth provides that assistance under this Act by: (a) meeting part of the costs of large settlements or awards paid by organisations that indemnify medical practitioners (but only for claims notified on or after 1 January 2003); and (aa) meeting the amounts by which settlements and awards exceed insurance contract limits, if those contract limits meet the Commonwealth's threshold requirements; and (ab) meeting the amounts payable in relation to certain claims (notified on or after 1 July 2004) against medical practitioners who are no longer in private medical practice; and (b) providing for a subsidy scheme to help certain medical practitioners meet the cost of their indemnity arrangements; and (c) meeting the cost associated with certain IBNR liabilities of organisations that indemnify medical practitioners to the extent to which those organisations had not made adequate provision for those liabilities as at 30 June 2002. Note: The acronym "IBNR" is used in this Act for "incurred but not reported". (3) The Commonwealth provides further assistance in relation to members and former members of UMP under a Medical Indemnity Agreement referred to in the Medical Indemnity Agreement (Financial Assistance—Binding Commonwealth Obligations) Act 2002. (3A) This Act also supports access by medical practitioners to arrangements that indemnify them for claims arising in relation to their practice of their medical professions by limiting when medical indemnity insurers can refuse to provide medical indemnity cover. (4) Another object of this Act (together with the medical indemnity payment legislation) is to allow the Commonwealth to recover the costs of providing the assistance referred to in paragraph (2)(ab) by requiring payments from medical indemnity insurers. Availability of other health services (5) Another object of this Act is to contribute towards the availability of certain health services in Australia by providing Commonwealth assistance to support access by persons who practise allied health professions to arrangements that indemnify them for claims arising in relation to their practices. (6) The Commonwealth provides that assistance under this Act by: (a) meeting part of the costs of large settlements or awards paid by organisations that indemnify persons who practise allied health professions; and (b) meeting the amounts by which settlements and awards exceed insurance contract limits, if those contract limits meet the Commonwealth's threshold requirements. 4 Definitions General (1) In this Act, unless the contrary intention appears: Actuary means the Australian Government Actuary. administrative action has the meaning given by subsection 76A(4). AFCA has the same meaning as in the Corporations Act 2001. affected medical practitioner has the meaning given by section 34ZQ. allied health exceptional claims indemnity means an allied health exceptional claims indemnity paid or payable under Division 2D of Part 2. Note: Amounts payable under regulations made for the purposes of section 34ZZZD (allied health exceptional claims payments) are not covered by this definition. allied health high cost claim indemnity means an allied health high cost claim indemnity paid or payable under Division 2C of Part 2. Note: Amounts payable under regulations made for the purposes of section 34ZZG (allied health high cost claims payments) are not covered by this definition. allied health high cost claim threshold has the meaning given by section 34ZZA. allied health profession means a profession that is: (a) a health profession within the meaning of the Health Practitioner Regulation National Law, other than the medical profession; or (b) specified in the rules. allied health termination date means the date, if any, set by rules under section 34ZZM. Chapter 5 body corporate means: (a) a body corporate that is a Chapter 5 body corporate within the meaning of the Corporations Act 2001; or (b) a body corporate to which a provisional liquidator has been appointed. Chief Executive Medicare has the same meaning as in the Human Services (Medicare) Act 1973. claim: (a) means a claim or demand of any kind (whether or not involving legal proceedings); and (b) includes proceedings of any kind including: (i) proceedings before an administrative tribunal or of an administrative nature; and (ii) disciplinary proceedings (including disciplinary proceedings conducted by or on behalf of a professional body); and (iii) an inquiry or investigation; and claim against a person includes an inquiry into, or an investigation of, the person's conduct. Note: Subsection (1A) extends the meaning of claim for the purposes of Division 2B of Part 2 (run‑off cover indemnity scheme). conducted appropriately: a defence of a claim against a person is conducted appropriately if, and only if: (a) to the extent it is conducted on the person's behalf by an insurer, or by a legal practitioner engaged by an insurer—the defence is conducted to a standard that is consistent with the insurer's usual standard for the conduct of the defence of claims; and (b) to the extent it is conducted by the person, or by a legal practitioner engaged by the person—the defence is conducted prudently. contribution year has the same meaning as in the Medical Indemnity (Run‑off Cover Support Payment) Act 2004. defence, of a claim against a person, includes any settlement negotiations on behalf of the person. eligible insurer has the meaning given in section 34ZZ. eligible MDO has the meaning given in section 34ZZ. eligible midwife has the same meaning as in the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010. eligible related claims: see section 8A. eligible run‑off claim has the meaning given by section 34ZB. exceptional claims indemnity means an exceptional claims indemnity paid or payable under Division 2A of Part 2. Note: Amounts payable under regulations made for the purposes of section 34X (exceptional claims payments) are not covered by this definition. exceptional claims termination date means the date, if any, set by rules under section 34G. Federal Register of Legislation means the Federal Register of Legislation established under the Legislation Act 2003. health care related vocation means a health care related vocation in relation to which there is at least one State or Territory under the law of which a person must be registered in order to practise. Health Practitioner Regulation National Law means the Health Practitioner Regulation National Law set out in the Schedule to the Health Practitioner Regulation National Law Act 2009 (Qld). health service means any service, care, treatment, advice or goods provided in respect of the physical or mental health of a person. high cost claim indemnity means a high cost claim indemnity paid or payable under Division 2 of Part 2. Note: Amounts payable under regulations made for the purposes of section 34AA (high cost claims payments) are not covered by this definition. high cost claim threshold has the meaning given by section 29. IBNR exposure has the meaning given by section 8. IBNR indemnity means an IBNR indemnity paid or payable under Division 1 of Part 2. Note: Amounts payable under regulations made for the purposes of section 27A (IBNR claims payments) are not covered by this definition. incident means any incident (including any act, omission or circumstance) that occurs, or that is claimed to have occurred, in the course of, or in connection with, the provision of a health service. incident‑occurring based cover has the meaning given by section 7. indemnify has a meaning affected by subsection (2). indemnity scheme payment means: (a) an IBNR indemnity; or (b) a high cost claim indemnity; or (c) an exceptional claims indemnity; or (d) a run‑off cover indemnity; or (e) an allied health high cost claim indemnity; or (f) an allied health exceptional claims indemnity. insurance business has the same meaning as in the Insurance Act 1973. insurer means a person who carries on insurance business. insurer‑to‑insurer payment means a payment that: (a) is made by an MDO or insurer to an MDO or an insurer; and (b) is not made by the MDO or insurer on behalf of another person. invoice includes: (a) any document issued by an MDO to a person (whether or not the person is already a member of the MDO) that contains a quote for the amount of subscription that is or would be payable by that person for membership of the MDO; and (b) any document issued by a medical indemnity insurer to a person (whether or not the medical indemnity insurer already provides medical indemnity cover to the person) that contains a quote for the amount of premium that is or would be payable by that person for provision of such cover. late payment penalty: (a) in relation to an amount repayable under section 24—means a penalty payable under section 27; and (aa) in relation to a debt owed under section 34T—means a penalty payable under section 34W; and (ab) in relation to a debt owed under section 34ZJ—means a penalty payable under section 34ZM; and (ac) in relation to a debt owed under section 34ZZZ—means a penalty payable under section 34ZZZC; and (b) in relation to a run‑off cover support payment—means a penalty payable under section 65. legal practitioner means a person who is enrolled as a barrister, a solicitor, a barrister and solicitor, or a legal practitioner, of: (a) a federal court; or (b) a court of a State or Territory. MDO has the meaning given by section 5. medical indemnity cover: a contract of insurance provides medical indemnity cover for a person if: (a) the person is specified or referred to in the contract, whether by name or otherwise, as a person to whom the insurance cover provided by the contract extends; and (b) the insurance cover indemnifies the person (subject to the terms and conditions of the contract) in relation to claims that may be made against the person in relation to incidents that occur or occurred in the course of, or in connection with, the practice by the person of a medical profession. Note: A single contract of insurance may provide medical indemnity cover for more than one person. medical indemnity insurer means: (a) a body corporate authorised under section 12 of the Insurance Act 1973 that; or (b) a Lloyd's underwriter within the meaning of that Act who; in carrying on insurance business in Australia, enters into contracts of insurance providing medical indemnity cover for other persons. medical indemnity payment legislation means the Medical Indemnity (Run‑off Cover Support Payment) Act 2004. medical practitioner means a person registered or licensed as a medical practitioner under a State or Territory law that provides for the registration or licensing of medical practitioners. Note: Subsection (6) gives this definition an extended meaning in Division 2B or 4 of Part 2. medical profession includes a health care related vocation. medicare program has the same meaning as in the Human Services (Medicare) Act 1973. member of an MDO has the meaning given by section 6. midwife insurer means an insurer that is an eligible insurer within the meaning of the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010. midwife professional indemnity cover has the same meaning as in the Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010. participating MDO means UMP. payment made in relation to a claim has (other than in Divisions 2A and 2D of Part 2) the meaning given by subsections (3) and (4). practitioner's contract limit, in relation to a person for whom a contract of insurance provides medical indemnity cover, means the maximum amount payable, in aggregate, by the insurer under the contract in relation to claims against the person. Note 1: If the contract provides medical indemnity cover for more than one person, there must be a separate contract limit for each of those persons. Note 2: For how this definition applies if the contract provides for deductibles, see section 8B. Note 3: For how this definition interacts with the high cost claim indemnity scheme and the allied health high cost claim indemnity scheme, see sections 34D and 34ZZJ. private medical practice means practice as a medical practitioner, other than: (a) practice consisting of treatment of public patients in a public hospital; or (b) practice for which: (i) the Commonwealth, a State or a Territory; or (ii) a local governing body; or (iii) an authority established under a law of the Commonwealth, a State or a Territory; indemnifies medical practitioners from liability relating to compensation claims (within the meaning of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003); or (c) practice conducted wholly outside both Australia and the external Territories; or (d) practice of a kind specified in the rules. professional indemnity cover: a contract of insurance with a medical practitioner provides professional indemnity cover if it provides medical indemnity cover for the practitioner in relation to the practitioner's private medical practice. provable: an amount that an MDO or insurer is liable to pay is provable if: (a) it is provable in the winding up of the MDO or insurer if the winding up of the MDO or insurer has commenced; or (b) it would be provable in the winding up of the MDO or insurer if the MDO or insurer were to be wound up. public hospital means a recognised hospital within the meaning of the Health Insurance Act 1973. public patient has the same meaning as in the Health Insurance Act 1973. qualifying allied health claim certificate means a certificate issued by the Chief Executive Medicare under section 34ZZK. qualifying allied health liability, in relation to a claim, has the meaning given by section 34ZZS. qualifying allied health payment: see subsection 34ZZB(4). qualifying claim certificate means a certificate issued by the Chief Executive Medicare under section 34E. qualifying liability, in relation to a claim, has the meaning given by section 34M. qualifying payment: see subsection 30(2). related body corporate has the same meaning as in the Corporations Act 2001. relevant allied health threshold: see subsection 34ZZL(1). relevant threshold: see subsection 34F(1). risk surcharge has the meaning given by subsection 52C(1). rules means the rules made under section 80. run‑off cover credit has the meaning given by subsection 34ZS(2). run‑off cover indemnity means a run‑off cover indemnity paid or payable under Division 2B of Part 2. Note: Amounts payable under regulations made for the purposes of section 34ZN (run‑off claims payments) are not covered by this definition. run‑off cover support payment means a payment payable under Division 2 of Part 3. Secretary means the Secretary of the Department. subject to appeal: a judgment or order is subject to appeal until: (a) any applicable time limits for lodging an appeal (however described) against the judgment or order have expired; and (b) if there is such an appeal against the judgment or order—the appeal (and any subsequent appeals) have been finally disposed of. total run‑off cover credit has the meaning given by section 34ZS. UMP means United Medical Protection Limited. Notifications by practitioners may constitute claims (1A) A reference in Division 2B of Part 2 to a claim includes a reference to a notification by or on behalf of a person of an incident, or a series of related incidents, if: (a) at the time of the incident, or one or more of the incidents, the person was a medical practitioner; and (b) the notification is to a medical indemnity insurer or an MDO; and (c) at the time of the notification: (i) a contract of insurance with the insurer provided the person with medical indemnity cover; or (ii) an arrangement with the MDO provided medical indemnity cover (within the meaning of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003) for the person; and the cover would have indemnified the person in relation to any claim relating to the incident, or series of incidents, if the claim had been made at the time of the notification. The notification is taken, for the purposes of Division 2B of Part 2, to be a claim against the person. Indemnifying (2) To avoid doubt, a person may, for the purposes of this Act, indemnify someone else by either: (a) making a payment; or (b) agreeing to make a payment. Note: A person may indemnify someone else by making a payment even if the payment was not preceded by an agreement to pay. Payments in relation to claims (3) For the purposes of this Act (other than Divisions 2A and 2D of Part 2): (a) a payment is made in relation to a claim against a person if and only if the payment is made to: (i) satisfy or settle the claim; or (ii) meet legal and other expenses that are directly attributable to any negotiations, arbitration or proceedings in relation to the claim; and (b) a payment is made in relation to a claim by a person if and only if the payment is made to meet legal and other expenses that are directly attributable to any negotiatio