MEDICAL DEFENCE MALAYSIA BERHAD

Annual Report for the Year ended 31^st December, 2002

Commencement of Business

Medical Defence Malaysia Berhad (MDM) was incorporated on 27 February 2001.  It commenced taking members in December 2001.  MDM is proud of its status as a pioneer local medical defence organisation in Asia, which has long been dominated by MDOs from outside Asia.

A Good Year

It has been a good year for MDM – a growing membership base;  a stable financial position;  stable membership subscription rates;  and not a single medico-legal case reported.  However, there may be cases of incurred but not reported (IBNR) liabilities in our first year.  Furthermore, subsequent years may not be as good.  Nevertheless, considering all the circumstances, the Directors of MDM have decided not to increase the existing subscription rates for the next year as well.  Yet again, MDM understands that the only foreign-based MDO will be increasing their subscription rates by 16-28%.  To our pioneer members for their fervent support, a 5% life discount has been given.

Before commencing with the recruitment of members, MDM had obtained insurance protection, a step which was slightly delayed by the upheavals in the insurance industry following the terrorist attacks of 11 September 2001.  It spoke well of the potential membership of MDM that such insurance was granted to MDM.

MDM was formed because of the crying need for a local MDO carrying with it local control and the backing of local expertise.  This is particularly so considering that the British-based MDOs, which had been active in Malaysia for some years, had, over the years, withdrawn from various overseas markets and even from the biggest segment of their business, which was the National Health Service.   Malaysian doctors must not be left in the lurch if foreign-based MDOs suddenly withdraw from Malaysia.

In medico-legal terms, Malaysia is a low-risk and low-cost country.  Therefore, most importantly, the money Malaysian doctors provide for their medical defence must not be sent overseas to be wasted or to subsidise doctors in higher-risk and higher-cost countries.  The collapse in early 2002 of the United Medical Protection of Australia left stranded its members in Singapore who found that their money had left Singapore and ended up under the control of a provisional liquidator in Australia, in which country was situated the bulk of its membership and liabilities.  MDM must not allow such a situation to happen in Malaysia.

Members of the Board of MDM have travelled all over the country to promote the business of MDM.  They have made no less than fifteen presentations to doctors during the year.  The response has been good.  MDM is pleased to see amongst its members and medical advisors, many highly-regarded members of our profession.

Our Website

Our website (www.mdm.org.my) contains information of relevance to MDM and its members.  Members are encouraged to give MDM their comments and ideas.

Medico-Legal Seminar

MDM held a medico-legal seminar with the co-operation of the Federation of Private Medical Practitioners Associations in Kuala Lumpur on 16 November 2002.  The speakers were our Deputy Chairman Dr. Richard Veerapen and lawyers Mr. P.S. Ranjan (of Messrs. P.S. Ranjan & Co.) and Miss Anit Randhawa (of Messrs. Asbir, Hira Singh & Co.).  Their presentations were well-received by an enthusiastic audience.

Other Professional Meetings

The Chairman attended the Biennial Meeting of the International Section of the Physicians’ Insurance Association of America from 10 to 12 October 2002 in Sydney, Australia.  It was a very important event for people involved in the medical defence industry.  MDM has made many useful contacts at the Meeting and was pleased to receive invitations from a number of MDOs to visit them and to call upon them for information and assistance.  We were interested to hear at the end of the Meeting of coming legislation in Australia which would introduce wide-ranging reforms, many of which would benefit doctors, including reforms capping certain types of damages awards;  the reintroduction of the Bolam test in medical negligence but in a modified form;  and the shortening of limitation periods for claims.

The Chairman also attended the Annual Seminar of the Medico-legal Society of Singapore from 26 to 27 October 2002 which proved to be of benefit to MDM in that there was much discussion of various medico-legal issues of interest to both countries.

Media Attention

MDM keeps track of reporting in the media of matters of interest to the industry and its members.  MDM has made it a point to convey through the media from time to time its views on issues which are within its purview as an MDO dedicated to protecting the professional interests of its members.

The Benefits of Membership

A member of MDM is eligible for the benefits of membership of MDM if the member is in the appropriate membership category and is in benefit with MDM at the time of the occurrence of the event giving rise to the member’s request for assistance.  However, MDM has received requests from doctors for assistance when they were not members of MDM (in some cases, they were members of another MDO or an insurance scheme).  MDM will not use the resources provided for its members for the benefit of non-members but, in some instances, MDM’s directors, advisors and experts have provided, on a personal and discretionary basis, assistance and advice to such professional colleagues.

There is strength in numbers and MDM therefore invites doctors in Malaysia to support its medical defence scheme which is intended to protect the professional interests of doctors in Malaysia.

Our Thanks

MDM thanks its members, staff, advisors, experts, insurers, brokers and supporters for contributing to its successful first year.  It looks forward to many more years of success, growth, development and progress.

Dr. Eddie Soo Fook Mun

Chairman