MPS recommends and generally* provides to its members (both medical and dental) occurrence-based indemnity. This means that a member’s entitlement to seek assistance is unaffected by the passage of time between the date of treatment and the date of any subsequent claim arising from it. The defining requirement is that the member had paid the correct subscription, in an appropriate membership category, at the time when the treatment was provided, or the incident occurred. This is important, since a feature of many dental (and medical) claims is the long delay between incident and claim.
Occurrence-based indemnity avoids the potential gaps in one’s protection/indemnity and/or the additional cost of ‘run-off’ premiums that are often associated with the claims-made policies which are generally favoured by commercial insurance companies.
Occurrence-based indemnity is unquestionably the gold standard as far as the individual member is concerned, and it also eliminates many uncertainties in the long-term protection of patients who are affected by adverse incidents.
In a very small number of international jurisdictions, there is a legal requirement to cover certain dento-legal risks by means of a contract of insurance.
In some instances, the local legislation or regulatory environment makes it difficult, or perhaps not commercially feasible, for MPS to offer occurrence-based indemnity, as we would prefer to do for the reasons stated above.
Where this is the case, members will be advised locally of the arrangements that have been made to protect their interests, whilst complying with the local legislation and regulatory requirements. In these jurisdictions, insurance premium tax (stamp duty), where applicable, needs to be charged on any insurance premium paid to the provider of the insurance.