Discretionary Mutual Fund
Why are we doing this?
Unfortunately, this has left us in an untenable position where we may find we are not covered in the event we need our PI insurance cover.
This resulted in the need for those of us who are pro-choice to have another option. One where our PI insurance is not based or affected by our pro-choice decisions.
The solution at this point in time is for us to “self-insure” and the way to do this is by forming a Discretionary Mutual Fund (DMF).
The DMF will offer both Professional Indemnity and Public Liability insurance.
Unfortunately, this has left us in an untenable position where we may find we are not covered in the event we need our PI insurance cover.
This resulted in the need for those of us who are pro-choice to have another option. One where our PI insurance is not based or affected by our pro-choice decisions.
The solution at this point in time is for us to “self-insure” and the way to do this is by forming a Discretionary Mutual Fund (DMF).
The DMF will offer both Professional Indemnity and Public Liability insurance.
What do you need to do to join?
At the present time we are asking for expressions of interest to join the Allied Health Practitioners DMF.
You will need to fill in your details above. Once your details are received you will then get an email in return, confirming we have received your expression of interest and what you need to do next.
For those wanting to know more about the DMF, please read “What is a DMF?” that follows the form to fill in below. You may also chose to watch the video.
About DMF
A Discretionary Mutual Fund (DMF) is an entity that is used for the management of risk. DMF’s are an alternative way to mitigate risk instead of using an insurance company.
DMF’s are used by its members who have a common purpose. In this case allowing chiropractors and allied health practitioners to have Professional Indemnity (PI) and Public Liability (PL) insurance.
Unlike insurance companies that you pay a premium to for the PI and PL insurance, the DMF supplies this cover through the annual contribution of its members. These annual contributions create what is referred to as an Aggregate.
The Aggregate is the pool of funds that is then used to payout any claims that are incurred by the DMF’s members.
Unlike insurance companies, whose purpose is to sell insurance and make a profit for the shareholders of that company, DMF’s insure their membership and any “profits” remain in the DMF for the benefit of the members.
Initially, the contributions of the members in a DMF may not create a big enough Aggregate. To ensure there is enough cover in the event of a large claim, the DMF will use some of the Aggregate to purchase insurance that will provide cover for these claims. This is known as re-insurance/Excess of Loss insurance. The level of re-insurance/Excess of Loss insurance required is a function of the amount of funds held in the DMF, the Aggregate.
DMF’s for administrative purposes utilise a company structure that is limited by guarantee. The company will have a board of directors. The board of directors will consist of a DMF manager that oversees the compliance and regulatory requirements of the DMF. Along with the DMF manager, the board also consists of members of the DMF, chiropractors, allied health practitioners, whom are suitability qualified to be board members and ensure that the needs and best interests of the members are met.
The DMF board must balance the financial viability of the DMF along with the appropriate risk mitigation strategies to ensure the success of the DMF.
What are the benefits of a DMF?
A Discretionary Mutual Fund (DMF) is an entity that is used for the management of risk. DMF’s are an alternative way to mitigate risk instead of using an insurance company.
DMF’s are used by its members who have a common purpose. In this case allowing chiropractors and allied health practitioners to have Professional Indemnity (PI) and Public Liability (PL) insurance.
Unlike insurance companies that you pay a premium to for the PI and PL insurance, the DMF supplies this cover through the annual contribution of its members. These annual contributions create what is referred to as an Aggregate.
The Aggregate is the pool of funds that is then used to payout any claims that are incurred by the DMF’s members.
Unlike insurance companies, whose purpose is to sell insurance and make a profit for the shareholders of that company, DMF’s insure their membership and any “profits” remain in the DMF for the benefit of the members.
Initially, the contributions of the members in a DMF may not create a big enough Aggregate. To ensure there is enough cover in the event of a large claim, the DMF will use some of the Aggregate to purchase insurance that will provide cover for these claims. This is known as re-insurance/Excess of Loss insurance. The level of re-insurance/Excess of Loss insurance required is a function of the amount of funds held in the DMF, the Aggregate.
DMF’s for administrative purposes utilise a company structure that is limited by guarantee. The company will have a board of directors. The board of directors will consist of a DMF manager that oversees the compliance and regulatory requirements of the DMF. Along with the DMF manager, the board also consists of members of the DMF, chiropractors, allied health practitioners, whom are suitability qualified to be board members and ensure that the needs and best interests of the members are met.
The DMF board must balance the financial viability of the DMF along with the appropriate risk mitigation strategies to ensure the success of the DMF.
Caveats
A DMF can only be set up if we have enough chiropractors/allied health practitioners willing to join. The scenarios below assume there are enough members.