Consensus
7
Subject to paragraph 8, liabilities arising for medical defence organisations in respect of outstanding claims shall be recognised in relation to events that have occurred prior to the end of the reporting period that are alleged to be covered by discretionary medical indemnity arrangements of the entity, in the following cases:
(a) unpaid reported claims;
(b) incurred but not reported claims arising under claims-incurred indemnity arrangements;
(c) incurred but not reported claims arising under extended reporting benefit indemnity arrangements, death, disablement or retirement indemnity arrangements, or other run-off cover, in relation to:
(i) members for whom such arrangements are in effect as at the end of the reporting period; and
(ii) members expected to qualify in the future for such arrangements as a member of the organisation; and
(d) incurred but not reported claims arising under claims-made indemnity arrangements which are, in substance, claims-incurred indemnity arrangements.
8
Liabilities arising in respect of outstanding claims shall be recognised when the entity has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
9
The following information shall be disclosed in relation to the determination of the liability for outstanding claims:
(a) the accounting policies and methods adopted, including the basis of measurement and key assumptions applied; and
(b) information about the nature and extent of the underlying indemnity arrangements, including significant terms and conditions that may affect the amount, timing and uncertainty of future cash flows.