Over 25 years ago, and at the request of our members, NZRDA arranged for a specifically tailored Indemnity Insurance scheme for RMOs to be established, known today as NZMII. As a result, NZRDA owns 15% of NZMII and cover is available for all resident doctors. Coverage can also continue on into general practice or life as a consultant (SMO). Read on for more information about your Indemnity Insurance options.
Choosing your provider
As a practicing RMO you will need to choose which indemnity insurance provider you are covered by. You may have heard of MPS, but did you know there are a further two providers of indemnity cover in NZ? They are Medicus and NZ Medical Indemnity Insurance (NZMII):
- MPS is a friendly society which does not provide insurance but discretionary cover; MPS is located and run from the UK.
- Medicus is an incorporated society through which insurance can be secured from a separate general insurance company.
- NZMII is a 100% NZ-owned insurance company that directly insures doctors. NZRDA owns 15% of NZMII and most Resident Doctors are insured with NZMII.
As a shareholder, the National Executive of NZRDA receives regular reports from the NZMII Board of Directors and is actively engaged in advising on matters of importance to RMOs in the indemnity field.
How does an insurance policy differ from discretionary cover?
The difference between insurance and discretionary cover is important to know about. With insurance you have a legally binding contract of cover that is guaranteed; with, discretionary cover there are no guarantees. In NZ, insurance providers are governed by the Reserve Bank through the Insurance Act. This requires insurance companies to have the money ready and available at all times to cover potential claims so a contractual guarantee is exactly that.
So how does NZMII protect you, the insured doctor?
NZMII is immediately available to assist and advise you on what to do if you are involved in a case or complaint.
If a complaint is made involving you, which statistically speaking will invariably happen, NZMII will provide support, review the complaint, and assist in drafting a response. In the worst-case scenario, the medico-legal team, comprising barristers and solicitors (with help from medical experts where necessary) will represent you in any hearing or court/tribunal proceeding.
You have guaranteed insurance cover to $2 million, a level that is more than sufficient for RMOs (and in fact has never been approached, although the buffer is comforting).
What is included in NZMII insurance cover?
- Extends to all work as an RMO (including locum work) in NZ
- Provides legal advice for patient complaints, police statements, MCNZ notifications and coroner or ACC reports
- Provides professional counselling through Clearhead up to $1000 per period of insurance
- Includes a 24-hour emergency phone line. Although rarely needed, over the years it has proved invaluable to a few.
- Offers extensions to cover for charity work in the Pacific
How do I apply for cover with NZMII?
NZMII offers free indemnity insurance for trainee interns so you can be covered right now at no cost – apply here.
PGY1s (and RMOs) can join the NZMII Group Scheme which Te Whatu Ora pays for so there is no out-of-pocket expense for you.
To find out more about cover with NZMII as a TI or PGY1 please click here.
If you have any questions regarding indemnity insurance, contact NZMII on 0800 120 220 or email them here.