Frequently Asked Questions (FAQs)

1.     What is MDM all about?

MDM is a mutual medical defence organisation (MDO) founded by Malaysian doctors, for Malaysian doctors.   We are NOT an insurance company.  We are an organisation of doctors with the primary aim of providing medical indemnity for our members at attractive rates.  MDM is a Berhad, limited by guarantee.   There are no shareholders, no dividends.  WE ARE A MUTUAL.

2.     Why Form A Local MDO?

The founders of MDM believe that Malaysian doctors should look after our own medical defence needs, as we have the medical and legal expertise to do so.  What is most important of all is to contain costs.

3.     Who runs MDM?

MDM is run by a group of doctors who volunteer their time and effort for the organisation.   The Board members do not receive any director’s fees or honorarium at the moment.  The Board members are spurred solely by their belief in a local MDO based on local needs of the medical profession. 

4.     What can MDM offer me that others cannot?

Apart from indemnity cover (at attractive rates) which include actual court awards and  legal fees for the defence lawyers,   MDM members also enjoy “non-claims”  benefits like medico-legal counselling and resources.  The intangible, but equally important,  benefits include peer support and most importantly accessibility – we are  here  when you need us.

5.     Is the MDM scheme on a claims basis or an occurrence basis?

MDM provides indemnity cover based on an occurrence basis.

6.     Does the MDM scheme give me “unlimited” cover?

As MDM is founded on local requirements, our subscription rates and limit for coverage reflect the reality of Malaysian medical indemnity experience, especially the low court awards in medical negligence suits.  Why pay more than is necessary to obtain adequate cover for our members, with a comfortable margin ?

Example:

A patient visited her obstetrician & gynaecologist to change her intra-uterine loop.  This was done.  Three months later, the patient returned to complain of ‘spotting’ and lower abdominal pain.  The doctor ultrasounds the patient and confirms that the loop is in position.  Four months later, the doctor receives a claim that the patient now has two loops – the old loop was not removed and the new one inserted.  The doctor was negligent.  The doctor contacted the foreign-based MDO of which the doctor was a member.  The MDO’s solicitor initially said this could be settled for RM8,000.  Eventually, the MDO’s solicitor said the case could be settled for RM40,000 - the MDO would only pay  RM12,000 and the doctor has to pay RM28,000!   Where is the “unlimited cover” ?  The doctor was so fed up with the management of the case that the doctor paid the RM40,000 from own (doctor’s) funds to the patient.  The doctor subsequently resigned from the foreign-based MDO.

7.  How could MDM have sufficient funds since it is a new Medical Defence Organisation?

Members will be supported by MDM’s prudent arrangements with a consortium of Insurance Companies as well as with its own growing pool of funds.  MDM will quarantine all the funds in Malaysia.

8.      Will my membership with MDM provide coverage for Locums?

We do not provide coverage for a substitute doctor who treats your patients in your absence.  If the locum doctor does regular locum work, he should have his own medical indemnity.  MDM will be more than happy to accept him as a member.   MDM will not cover a “moonlighting” locum.

9.     Is MDM “recognised” by the Government?

Yes,  MDM is ‘recognised’ by the Government as we were incorporated on 27 February 2001 under The Companies Act, 1965 as a public company limited by guarantee and not having a share capital.

10.   Is MDM regulated by Bank Negara?

As we are not an insurance company, we are not subject to Bank Negara regulations.   We are subject to the Companies Commission of Malaysia and the Companies Act 1965.