MDDUS responds to DoH indemnity statement

PRESS RELEASE

For immediate release: Wednesday, 18 October 2017

Last night, the Department of Health took the unprecedented step of warning GPs in England about the risks associated with the MDU's new ‘transitional benefits’.

Commenting on the DoH warning to GPs (see page 3), MDDUS Chief Executive Chris Kenny said:

“The MDU's ‘transitional benefits’ are not remotely comparable to the gold standard occurrence-based membership offered by MDDUS.

“As the Government's statement sets out, ‘claims-paid’ membership would only provide indemnity for claims that are incurred, reported and (crucially) paid by the MDU before the introduction of any Government-backed scheme.

“The average claim takes around three years to report after the incident that caused it, and another two years to manage through the legal process, so we think MDU members will see little practical value from this new product and, as the Government statement makes clear, GPs will be hit with an unknown bill for run-off cover as well.

“The state-backed scheme will be voluntary. Industry and professional comment alike has emphasised the need for full transparency on all the details before decisions are made.

“The MDU’s hasty action removes that vital future informed choice and waters down current protection, probably with no long-term saving.

“MDDUS members know they can place their trust in us to do the right thing. We will not sell them short with an ill-thought out and second-rate membership offering that places them at individual risk.

“The subscriptions we charge represent our best estimate of our future costs in protecting and defending members. We can and do lower prices where this is sustainable and will continue to look for every opportunity to do so in the difficult market conditions caused by the Government’s action on the discount rate and proposal for a state scheme.

“What all sides need to do is take concerted action to tackle the causes of high indemnity, not reach for commercial or policy gimmicks.”

Read our previous statement here:

MDDUS sounds note of caution over state-back indemnity scheme

Ends

For further information contact Richard Hendry on 0333 0434444 or 07976 272266, or email rihendry@mddus.com.

Note to editors

MDDUS (The Medical and Dental Defence Union of Scotland) is a medical and dental defence organisation providing access to professional indemnity and expert medico- and dento-legal advice for doctors, dentists and other healthcare professionals throughout the UK.

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