Members of failed medical indemnity insurer United Medical Protection won’t have to worry about finding another insurer or medical defence organisation to indemnify them – for now, at least. Doctors and creditors who are members of the group gathered in Sydney last week and voted unanimously to continue with the provisional liquidation of the group until December 2003.

Provisional liquidator David Lombe welcomed the decision by members, saying it gives doctors certainty to renew their medical indemnity cover. He had urged members and creditors to take advantage of the Federal Government’s one-year extension of its financial assistance package.

The collapse of UMP in May has given headaches to thousands of doctors around the nation over the past few months. Just as they were struggling to meet the rises in indemnity premiums, the collapse of UMP left them forcing the Federal Government to lend a hand.

UMP has a $460 million liability for incurred but not reported (IBNR) claims as at June 30.

Mr Lombe is now working to obtain Federal Government approval to re-admit 3500 members who left the group in the past year over concerns about its financial viability. The departure of members has seen UMP’s revenue fall 10% this year to $212 million.