I propose to take Questions Nos. 192, 193, 217, 237, and 243 together.
I am aware of the growing cost of litigation arising from allegations of medical negligence. These costs are rising for a number of reasons. The number of claims against individual doctors and against hospitals is rising; the size of awards made to successful claimants is rising and the associated legal costs falling on the parties to claims are also rising. The result of these developments is a significant increase in the cost of providing insurance cover against the risk of claims.
At the request of my predecessor, the Government approved the establishment of a working group representing the Departments of Health, Finance, Industry and Commerce and Justice, and the Office of the Attorney General to examine this area and to make recommendations. This group have been asked to produce a report on alternatives to the present system of establishing negligence and awarding compensation. The Group are examining a full range of alternative options including the introduction of a "no fault" system, practice guidelines and a specific scheme for non-consultant hospital doctors. However, I would prefer to make no further comment on the merits of any particular proposal until the group has reported. I expect to receive an interim report from the Group before the end of May.
The approximate annual cost of refunds of medical defence premia to my Department for the years 1987 to 1991 was £0.49 million, £0.86 million, £2.8 million, £4 million and £9 million respectively. The estimated cost in 1992 is £14 million.