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Australia: An Integrated Scheme for Regulating Liability for Medical Malpractice and Indemnity Insurance Martkest that Does Not Include the Goal of Improving the Safety and Quality of Health Care


The successful regulation of compensation for harms caused by medical malpractice is an important achievement in Australia. While this is a significant achievement, it is also crucial to identify the costs of this set of regulatory initiatives. This Article outlines the two major sets of initiatives that have successfully regulated claims for compensation associated with medical malpractice. The first set of initiatives has imposed limitations on a plaintiff's right to claim compensation and the amount of damages a successful plaintiff is entitled to recover. Developments in the common law have increased the effectiveness of these initiatives. The second set of initiatives has had the aim of creating an effective and prudentially sound market for medical indemnity insurance. The aim of this set of initiatives has been to ensure that medical professionals are able to purchase reasonably priced indemnity insurance policies.