A doctor who wanted her premiums reduced by $14,000 has lost a bid for hardship assistance before the complaints authority, which says her insurer calculated the bill fairly.  

The GP’s premiums were recalculated by MDA National Insurance after a Medicare audit revealed the doctor had not provided her business’ correct gross annual billings for several years.  

The error led to her professional indemnity policy being underpriced, the insurer said. MDA demanded $34,009 in outstanding premiums and cancelled the policy.  

The policyholder acknowledged the mistake but asked the insurer to reduce the outstanding amount to $20,000, citing financial hardship and stress from the audit.

The GP, who had a salary of $11,000 a month, told the Australian Financial Complaints Authority she had only $66 a month left after expenses.  

The insurer did not accept that the doctor required hardship assistance.  

It said the GP, who was single and had no dependants, could “live a lavish lifestyle on much less than what she has included as her monthly living expenses”.

An AFCA panel finds the insurer took appropriate steps when considering the complainant’s request, and it was fair to deny it.  

“The panel considers the complainant has not persuasively shown she is unable to pay the outstanding premium ... or that other revised payment options or financial assistance is required.”  

See the ruling here.