Australia's biggest medical insurer to appoint liquidator

Asian Economic News, May 6, 2002

SYDNEY, April 29 Kyodo

Australia's largest medical insurer United Medical Protection (UMP) announced Monday it will apply to appoint a provisional liquidator, Australian Broadcasting Corp. (ABC) reported.

The move casts doubt over the future of more than half of Australia's doctors who are insured by the company.

The boards of UMP and partner company Australasian Medical Insurance Ltd. (AMIL), which insure about 60% of Australian doctors, have instructed their lawyers to make a court application to appoint a provisional liquidator.

The company has been struggling under the weight of massive claims payouts.

A spokeswoman for UMP and AMIL said the government had been notified of the board's decision, according to the ABC report.

The application for liquidation was expected to be made early next week, she said.

The plight of the beleaguered medical insurer has sparked reassurances by the government to doctors that they will stay protected and that no medical services will be disrupted regardless of what happens to UMP.

Last week the government declined a full bail-out of UMP, but said it would intervene to protect doctors should the company go into liquidation.

Doctors have warned they may have to leave their profession if the insurance company stops providing coverage.