Confidential

Questions / Answers:          Incident Occurring Policy (IOP)

On 30 April 2002 the then Commonwealth Minister for Health, Senator Patterson, announced to doctors who were members of United, that the Commonwealth would guarantee cover for claims that may arise at any time in relation to treatment provided to patients in Australia between 29 April 2002 and 30 June 2002(ie all Australian incidents during that period would be covered).

The Incident Occurring Policy (IOP) policy will provide cover for any claim arising from any incident occurring during the period 29 April 2002 to 30 June 2002 in the event that either UNITED's discretionary assistance or AMIL's professional Indemnity policy is not financially able to pay the claim.

Questions and Answers

Q       Why do I need to take out the Incident Occurring Policy?

A       The offering of and issuing of the IOP policy is a formalisation of the Commonwealth Governments offer to United Members to provide this cover to you.

 Q       Will the Incident Occurring Policy cost me anything?

 A       If you take up the offer of the Incident Occurring Policy and in the event of a claim you will be required to provide payment of $100 if requested by AMIL to do so.

Q       Does the Incident Occurring Policy cover my right to request discretionary assistance in the event of an overseas claim?

A       No, this only applies to treatment provided in Australia

Q       What do I need to do to get the policy?

A       This letter is only to advise you that the policy will be offered to you in early 2004.  You will be provided with the information to apply for the policy in 2004.

Q       Why is this Incident Occurring Policy only for the period of 29 April 2002 and 30 June 2002 when the government guarantee is until 31 December 2003 or the end of Provisional Liquidation?

 A      This IOP policy reflects the Commonwealth Governments offer made by Senator Patterson in her press release, and is to cover the period of 29 April 2002 to 30 June 2002, for incidents that occurred in that period on a "claims incurred"* basis. Subsequent Guarantees were made to the Provisional Liquidator on a Claims made basis.