The Insurance Ombudsman Service (IOS) has amended its terms of reference to establish a medical indemnity panel to deal with all medical indemnity disputes involving medical practitioners.

The move follows the Federal Government’s introduction of legislation in July 2005 requiring medical indemnity insurance to be provided by a licensed and regulated insurer.

As a result all medical indemnity insurers must subscribe to an independent external dispute resolution process approved by the Australian Securities and Investments Commission (ASIC).

Insurance Ombudsman Sam Parrino says a dispute could stop doctors from practising in the area of medicine for which they are qualified at the time of the dispute.

The terms of reference cover whether a decision will reduce, or have the potential to reduce, a doctor’s gross income by 30% or more.

The amendments took effect last Friday following extensive consultation between IOS, the Medical Indemnity Industry Association, the Australian Medical Association and the Federal Government. IOS will appoint members to its medical indemnity panel soon.

“The mere fact that the forum exists means medical organisations will have to be members and there will be a lot of importance on internal dispute resolution,” Mr Parrino said. “Our hunch is that there won’t be many disputes.”

Nonetheless, IOS is looking forward to playing an educational role with medical organisations.

“There will be a learning curve for doctors and organisations new to the external dispute resolution process.”