Midwife groups have welcomed the decision by health ministers to extend until June 2015 the professional indemnity (PI) insurance exemption for privately practising midwives.

This means the midwives will continue to be covered by national registration and accreditation arrangements. The current exemption was due to expire in the middle of next year.

Australian College of Midwives President Sue Kruske says the move reassures practitioners providing home-birth services that they will “not be forced to abandon women or face prosecution for violating registration requirements”.

However, she says there is still room for improvement, particularly on the issue of home births.

“All efforts must now be made to access affordable insurance for midwives providing home-birth services before the new 2015 deadline,” Ms Kruske said.

Although cover has been available since mid-2010, when the Federal Government introduced Commonwealth-supported PI insurance for privately practising midwives, it has never included the planned delivery of babies in the home.

“There has been no insurance available for birth at home since 2001, when HIH collapsed,” Ms Kruske told insuranceNEWS.com.au.

“I don’t believe this is a high-risk area for insurers.”

In its indemnity insurance fact sheet on maternity services reforms, the Federal Department of Health says insurers have not previously offered a product for privately practising midwives because “they represent a very small potential premium pool and there is a lack of accurate and up-to-date data on claims”.

Only two insurers – Medical Insurance Group Australia (MIGA) and Medisure Indemnity Australia – provide PI cover for privately practising midwives.

MIGA CEO Mandy Anderson says since the product her company provides is “heavily backed by the Commonwealth Government”, which carries most of the risk, it is difficult to comment on the possibility of policies including home births.

“The contract we work within and the scope and cover we provide is determined by Federal Government legislation,” she told insuranceNEWS.com.au.