New South Wales Consolidated Acts

HEALTH CARE LIABILITY ACT 2001 - SECT 24

24 Minister may prohibit person from providing approved professional indemnity insurance

(1) The Minister may, by order published in the Gazette, prohibit a person to whom the order applies ( "the insurer") from providing approved professional indemnity insurance if the Minister is satisfied that the insurer has failed to comply with any of the requirements imposed on the insurer under section 21 or by an insurance regulation order.

(2) An order under this section (a "prohibition order") may:

(a) prohibit the insurer from providing approved professional indemnity insurance from the date, or for a period, specified in the order, or

(b) prohibit the insurer from providing (from the date, or for a period, specified in the order) approved professional indemnity insurance to any person not covered by such insurance at the time the order takes effect (in which case the order does not operate to prevent the insurer from renewing any approved professional indemnity insurance that was in force at the time the order took effect).

(3) The Minister may not make a prohibition order in respect of an insurer unless:

(a) the insurer has been given:

(i) notice of the Minister’s intention to make the order (including the reasons for making the order), and

(ii) a reasonable opportunity to make submissions to the Minister with respect to the proposed order, and

(b) the Minister has considered any such submission.

(4) An insurer must not provide approved professional indemnity insurance in contravention of a prohibition order.

Maximum penalty:

(a) in the case of a corporation-400 penalty units for a first offence or 800 penalty units for a second or subsequent offence, or

(b) in any other case-200 penalty units for a first offence or 400 penalty units for a second or subsequent offence.

(5) If a continuing state of affairs is created by an offence under subsection (4), the offender is, in addition to the penalty specified in that subsection, liable to a maximum penalty of:

(a) 100 penalty units in the case of a corporation, or

(b) 50 penalty units in any other case,

in respect of each day on which the offence continues.

(6) A contravention of subsection (4), or the making of a prohibition order, does not annul or otherwise affect any professional indemnity insurance provided by the insurer or the liability of the insurer to any person covered by the insurance.

(7) A medical practitioner is covered by approved professional indemnity insurance even if the insurance was provided in contravention of a prohibition order.

(8) If a prohibition order is made:

(a) the Minister is to notify the Medical Board of the terms of the order, and

(b) the Medical Board is to notify those medical practitioners that the Board considers would be affected by the order.