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Insurance for VMO services
Under the VMIA's medical indemnity insurance policy, VMIA indemnifies the hospital/health
service and its employees whilst providing health care services to patients of the hospital/health
service.
VMIA also indemnifies persons for whose conduct the hospital or health service is liable at law
whilst providing health care services to public patients of the hospital or health service.100 This
means that VMOs who may not be employees of the hospital or health service, are covered
whilst providing health care services to public patients of the hospital or health service so long
as those health services were delivered in circumstances in which the hospital or health service
would be held liable at law for the conduct of the VMO.
This will apply in most situations in
which a VMO is treating a public patient at the hospital or health service. In those
circumstances the hospital or health service owes a non-delegable duty of care to the patient
and would be liable at law for the VMO's negligence.
If the VMO treats the patient as a private patient and not in the capacity as an employee of the
hospital or health service, then VMIA will not indemnify the VMO for any liability arising. There
are however some exceptions. The first is where a VMO who is treating a patient privately
refers the patient to a public hospital/health service elective surgery waiting list. The VMO will
be indemnified by VMIA to the extent that any legal liability arises in respect of the placement of
that patient on the waiting list. Secondly,
if a VMO, whilst consulting with a private patient
obtains the patient's consent to a procedure and refers the patient to a public hospital or health
service to have the procedure as a public patient, then the VMO will be indemnified for any
claims against the VMO that arise from the information or lack of information about the
procedure or risks associated with it given by the VMO to the patient at the time of obtaining the
patient's consent to the procedure. This is contingent upon the VMO having admitting rights to
the public hospital or health service to which the patient is referred.101
Rural GPs also may be individually indemnified by the VMIA under a policy of insurance. The
Rural General Practitioners Medical Indemnity Insurance Policy also includes cover for
employees of the insured GP, and medical practitioners if the medical practitioner is, at the time
of the health care incident giving rise to the claim, a registered medical practitioner and an
employee of the insured GP, and was providing health care services as a locum of the insured
GP. Under the policy of insurance, the insured GP must ensure that only registered nurses are
employed and/or engaged in the capacity as nurses.102 Trainee nurses, Division 2 registered
nurses and nurse assistants must act only under the supervision of suitably experienced
registered nurses.103
100 Clause 2, Medical Indemnity Insurance Policy, VMIA
101 Clause 2, Medical Indemnity Insurance Policy, VMIA
102 Clause 4.9.3, Rural General Practitioners Medical Indemnity Insurance Policy, VMIA
103 Clause 4.9.4, Rural General Practitioners Medical Indemnity Insurance Policy, VMIA
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Insurance for nurses
Registered nurses employed by public hospitals and health services are indemnified by VMIA
with respect to any claims against them arising out of the care provided by them to a patient of
the hospital or health service.104
If a registered nurse, employed by a medical practice, provides emergency triage and
responses from the hospital or health service, it is arguable that the hospital or health service is
liable for that nurse's conduct under its non-delegable duty of care and that the nurse is entitled
to be indemnified under the VMIA's medical indemnity insurance policy.
Purchasing additional indemnity cover
Health care professionals should consider their insurance needs in respect to their own
individual circumstances and making an informed decision about whether they wish to purchase
additional insurance.
The VMIA's insurance policy is comprehensive and covers most situations in which a claim may
arise, particularly in circumstances where the health professional is acting in his or her capacity
as an employee.
Whilst the VMIA insurance policy indemnifies health care professionals for claims that may be
made against them, and for the legal costs of defending the claim, VMIA is not obliged to pay
for the legal representation of a health care professional when a claim is not involved. For
instance, VMIA is not obliged to fund legal representation of a hospital or health service or a
health professional at a Coroner's Inquest. VMIA sometimes gratuitously pays for their legal
representation; however they are not obliged to. Equally,
VMIA is not obliged to fund the legal
representation of a health professional at a disciplinary proceeding, although has on occasions
been known to gratuitously do so.
There also is an unlikely possibility that a hospital or health service will dispute its vicarious
liability. This could occur if the hospital or health service considered that an employee acted
outside the scope of his or her employment.
Finally, the VMIA is entitled to decline indemnity if it has not been promptly notified by the
hospital or health service of a claim or potential claim (to the extent of loss caused to VMIA by
virtue of failure to give notice).105
104 Victorian Public Healthcare Program, Insurance Manual for Victorian Public Hospitals
105 Clause 4.4, Medical Indemnity Insurance Policy, VMIA
