Federal Government moves to introduce compulsory professional indemnity (PI) insurance for midwives have hit a snag: the premiums are likely to be too high for most midwives.

The Maternity Services Review is proposing changes that would require midwives in private practice to have PI insurance – which insurers do not currently provide – by mid-2010.

Caroline Holland, a director of Medisure Indemnity Australia, told insuranceNEWS.com.au the company has been asked by the Australian College of Midwives to help source a PI product for its members.

“Some insurers have shown interest in providing insurance to midwives under certain conditions,” she said.

“It is recognised at all levels that PI for midwives would be expensive. It’s likely to be out of reach financially for the average midwife. Government support in the form of access to premium support subsidy for midwives would ease this problem.”

Lisa Thorneycroft, a Ballarat birth attendant who organised a protest by midwives and mothers in the Victorian city last week, told insuranceNEWS.com.au the midwives want the Federal Government to subsidise the premiums.

“If this recommendation passes, a midwife [without PI insurance] and the woman hiring her will both be liable for prosecution and the midwife could be liable for up to two years imprisonment,” she said.

Ms Thorneycroft says she understands insurers can only work within their own constraints. The risks are high and homebirths make up only a small percentage of births.

“Lloyd’s has actually offered to insure midwives in Australia, but the premiums would be so high that it would be just not feasible,” she said.