In December last year, the St. Paul Insurance Company announced its withdrawal from the provision of medical malpractice insurance cover. This decision affects the company's operations worldwide. Non-consultant hospital doctors have been covered under the medical indemnity scheme by the company since July 1997. The existing policy will expire on 30 June and will not be renewed or extended.
Preparations are at an advanced stage on the introduction of the new clinical negligence scheme, based on the principle of enterprise liability, from 1 July. It is intended, therefore, to have a smooth transition from the existing cover provided by St. Paul to the new scheme underwritten by the State. There is no need for concern on the part of doctors or patients as to the indemnity status of doctors after that date.
The withdrawal of an insurer of the St. Paul status and reputation is clear evidence of the difficulty being encountered by hospitals and doctors in securing professional liability cover. It further emphasises the need to have the clinical negligence scheme put in place as quickly as possible.