The Lowdown on Medical Indemnity in Australia
This article has been written in collaboration with Avant, one of Australia's leading medical defence organisations and Messly's recommended partner in Australia. You can read more about Avant here and read their content for international doctors moving to Australia here.
If you are a UK doctor planning a move to Australia, you might be concerned about working in a new healthcare system and the risk of legal issues, such as patient complaints or even referrals to the medical board.
In this article, we’ve teamed up with the experts at Avant to unpack the kinds of legal issues to be aware of when you start practising in Australia, what cover you will get from the Australian public health system and the value that a medical defence organisation can bring.
Let's dive into it, breaking down the most common questions about medical indemnity that we get from UK doctors moving out to start working in Australia.
What legal risks might I face as a doctor in Australia?
Whilst every health system is different, broadly speaking the main areas of legal risk in Australia are similar to those you have encountered in your work in the NHS.
The main medico-legal risks that doctors may face in Australia are:
👉 Patient complaints to regulators
👉 Investigations by the Medical Board of Australia (MBA) or the Australian Health Practitioner Regulation Agency (Ahpra). The MBA is the national body that regulates medical practice in Australia, the equivalent of the GMC in the UK
👉 Medicare billing investigations and audits
👉 Coronial inquiries (after a patient death)
👉 Disciplinary hearings (even from minor professional conduct issues)
👉 Employment disputes, such as a dispute with your employer regarding your professional conduct towards a hospitalised patient
These are serious situations that could have an impact on your fitness to practice.
What is medical indemnity?
Medical indemnity protects you if something goes wrong in your professional practice — such as those issues listed above.
With medical indemnity insurance, you get protection for the costs of claims and of defending yourself in any of these situations.
Is it compulsory to have medical indemnity in place in Australia?
Yes. In Australia, having appropriate indemnity insurance is a requirement to practise medicine.
This requirement is laid out by the MBA, so before you can start a job practising medicine in Australia, you need to be registered with the MBA and have current medical indemnity cover that meets their minimum requirements.
Do I already get protection from Australia’s public health systems?
As with the NHS in the UK, in Australia doctors generally tend to benefit from a level of medical indemnity by their employer.
This applies if they are employed in state-based public health services.
This is known as being ‘employer indemnified’, and means that your employer agrees to indemnify you for any civil claims resulting from your acts, errors and omissions in carrying out your duties.
However, the level of cover can vary significantly depending on your role and your employer. There are often gaps in this cover, which leaves you unprotected.
For example, employment disputes, hospital inquiries and defamation claims may not be covered through an employer-indemnified arrangement.
For comprehensive protection, many doctors choose to have their own indemnity insurance to cover any potential ‘gaps’ in protection.
That’s why many doctors also obtain private cover from an Australian Medical Defence Organisation (MDO), like Avant, to cover other areas of medico-legal risk.
See below to learn more about MDOs and Avant.
How can I check what level of cover I have from my employer?
You should review your contract arrangements and check with your employer to confirm if or how you are covered.
Avant Law offers a fixed-fee contract review service for IMGs, providing concise legal advice on key terms of Australian employment contracts. This service aims to give clarity and confidence to IMGs as they embark on their medical careers in Australia. For more information on this service, please refer to their website here.
What about private practice outside of the Australian public health system?
The employer indemnity mentioned above only applies to doctors employed in state-based public health services.
Doctors who undertake private practice will most often not have any form of employer indemnity for that work, so they must ensure they have their own cover for that practice through an MDO.
What if I transition from a substantive post to locum work with agencies?
If you move into locum work, it’s important to ensure you’re fully indemnified.
Here are some steps to help you meet your indemnity requirements and avoid potential pitfalls.
Step 1 – Check the indemnity clause in your contract
Firstly, you should thoroughly review your locum contract’s indemnity clause. Your contract will typically specify whether you are employer indemnified or non-employer indemnified for the healthcare services you provide.
As explained above, employer indemnified practice refers to practice where your employer (employing hospital, practice or locum agency) agrees to indemnify you for any civil claims resulting from your acts, errors and omissions in carrying out your duties. If your contract confirms you are covered by your employer, your practice is considered ‘employer indemnified’.
Non-employer indemnified practice refers to practice where you’re not indemnified by your employer for any civil claims arising from your healthcare practice, regardless of whether these services are undertaken in a public or private setting. If your contract doesn’t provide for employer indemnity, you will need your own cover.
Even if your employer provides indemnity for the healthcare you provide, this coverage may not extend to all types of claims.
As we mentioned above, employment disputes, hospital inquiries and defamation claims may not be covered through an employer-indemnified arrangement. For comprehensive protection, it’s a good idea to have your own indemnity insurance to cover any potential ‘gaps’ in protection.
Step 2 – Consider an additional policy
If you’re not employer indemnified for locum work, you will need to get a policy in place from a Medical Defence Organisation. Make sure your policy includes cover for non-employer indemnified practice.
And even if you are employer indemnified, you may still want to consider additional protection to cover any potential ‘gaps’ in protection.
In either case, make sure your level of cover is appropriate for the locum work you are undertaking. The MDO will need to know your estimated earnings, and the kinds of locum settings you will be working in.
What is a Medical Defence Organisation?
Medical Defence Organisations (MDOs) are mutual membership organisations that provide indemnity and support for their members.
MDOs aren’t insurance companies, and provide protection on a discretionary basis. They were established and are run to look after their members, using their discretion to support doctors.
Doctors who want this indemnity and support become members of an MDO, and pay an annual subscription fee to join.
What other benefits could I get from joining an MDO?
As well as cover from any medico-legal claims, you also get access to experienced experts who understand how to support doctors through these complex situations.
Many Australian medical indemnity providers offer members access to 24/7 medico-legal advice and support by phone or email.
Some offer educational resources to help members improve their practice and reduce risk, including courses that count towards Continuing Professional Development points, which is an ongoing requirement of registration in Australia. Some also provide additional private health insurance and travel cover for members.
How much does indemnity insurance cost?
Premium prices differ between medical indemnity providers and depend on your circumstances and the kind of clinical work you are undertaking.
There are also individual and industry factors that influence your premiums. The key ones are:
👉 Your specialty and healthcare that you provide (e.g. surgical specialties are higher risk, and come with higher premiums)
👉 Your level of seniority
👉 Whether you are working privately or as a locum, and if so your gross annual earnings
👉 Your claims history (if any)
👉 Wider factors such as costs of litigation and inflation.
As a new practitioner in Australia, you may be eligible for significant discounts. Avant can help you get a tailored quote.
How do I choose an MDO?
It’s best to start making inquiries early so that you can make sure you have all the information needed to hand and everything in place before you start your role.
When reviewing MDOs, you should consider a provider who offers:
👉 Strong medico-legal expertise
👉 Comprehensive coverage tailored for the healthcare you provide
👉 Transparent costs and benefits
👉 Additional support services (like education, advice, and medico-legal advice)
👉 A track record of supporting doctors in your situation
Why is Avant Messly’s recommended partner in Australia?
The team at Messly undertook a review of the major MDOs in Australia, to come to a recommendation of the most suitable MDO for UK doctors considering a move to Australia.
We did some ‘secret shopping’ and spoke to doctors, and have decided to recommend Avant.
We really liked their focus on helping UK doctors making the move Down Under. They have helped thousands of international doctors successfully transition to practising in Australia, and have dedicated support for doctors in your situation (more on this below).
They are also the largest MDO in Australia, with over 90,000 students and doctors insured with Avant, more than any other MDO.
We also really like that they are one of the few MDOs that has dedicated risk advisors for personalised support.
They also have support for early career doctors, with premium discounts in the first four years, through their Getting Started in Private Practice, and loyalty rewards, offering premium deductions to eligible members who stay with us.
How does Avant support UK doctors relocating to Australia?
Avant provides a comprehensive suite of services tailored for doctors relocating to Australia.
They have an extensive range of materials to help navigate the Australian medical system, as well as their contract review service and discounts on expert legal advice on Australian employment contracts.
Avant has curated an extensive collection of educational materials to assist IMGs in understanding the Australian medical system. This includes an E-book designed to support recently migrated doctors. All the materials can be located on their website here.
As well as comprehensive cover, Avant membership gives you access to:
👉 24/7 medico-legal advice and support, in emergencies
👉 Discounts on employment contract reviews with Avant Law
👉 Risk management and education
👉 Support through regulatory and hospital processes
👉 Wellbeing programs
👉 A community of 90,000+ doctors across Australia
To learn more about Avant, click here and review their materials for doctors relocating to Australia here.
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