Indemnity Insurance

Over 25 years ago at the request of our members, NZRDA arranged for a specifically tailored indemnity insurance scheme for RMOs to be established, known today as NZMII (NZ Medical Indemnity Insurance).

As a result, NZRDA owns 15% of NZMII, and cover is available for all resident doctors. 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. Coverage can also continue on into general practice or life as a consultant (SMO).

As a practicing RMO you will need to choose which indemnity insurance provider you are covered by. You may have heard of MPS, but there are a further two providers of indemnity cover available; Medicus and 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.

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 New Zealand, 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.

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).

• Extends to all work as an RMO (including locum work) in NZ.
• Provides legal advice for patient complaints, police statements, MCNZ notifications, and coroner/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.

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 an RMO, please click here.

If you have any questions regarding indemnity insurance, contact NZMII on 0800 120 220 or email general@nzmii.co.nz.