Over the past 12 months, Medicus has been joined by a large number of medical students, especially from the Auckland Medical School and RMOs from Canterbury and West Coast branch of Te Whatu Ora.
In this issue I want to give a special welcome to these students and young doctors, as well as to the very many other doctors, dentists and health professionals who have joined in the last year.
They will have joined for a number of reasons, but in having done so, they should know that they have now acquired professional indemnity (PI) cover which is superior to that held by most of their colleagues throughout New Zealand.
The hallmark of the PI cover provided by Aon/NZI through Medicus is that cover is provided by an insurance policy, rather than a Mutual Society. This may seem rather a subtle point, but it can become of crucial importance.
The cover provided, in terms of legal advice/assistance and provisions for awards of compensation, court costs and more are binding on the insurer, as outlined in the policy. Insurers are required by law to hold sufficient funds to meet possible future claims. This is not the case for a Mutual Society.
In that instance, the cover provided is at the discretion of the Board of the Mutual Society. This means legal assistance can be declined, and court costs and any awards of compensation are made entirely at the discretion of the Society.
This is a very important distinction, and one which is likely to become the more important as the medico-legal landscape in NZ continues to evolve. It was central to the decision of those who moved to form Medicus in 2012.
Your Board believes the cover provided to all Medicus Members through the policy with NZI, is what is needed in the healthcare environment of New Zealand today. We invite you to discuss this seemingly subtle difference with your colleagues. It is a difference worth thinking about.
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