Indemnity regulation reform
We recommend that the Government should, as a matter of urgency, reform the current regulation of indemnity products for healthcare professionals in light of the serious shortcomings identified by this Inquiry and introduce a nationwide safety net to ensure patients are not disadvantaged.
How was this assessed?
Response
Accepted in Part
Response
Accepted in PartAccepted in principle. Medical defence organisations launched a voluntary Code of Practice for discretionary indemnity on 6 January 2025. DHSC commissioned an independent evaluation of the Code. Government continues to consider further policy options to reform clinical negligence cover, including addressing cover for criminal acts. The Code is voluntary, not the mandatory 'nationwide safety net' the Inquiry recommended. (Sources: Written Ministerial Statement HCWS318, March 2024; Lords Written Statement HLWS789, 8 July 2025)
Progress Timeline
The voluntary Code of Practice was launched by the Medical Defence Union, Medical Protection Society, and Medical and Dental Defence Union of Scotland on 6 January 2025, establishing seven core principles. Lords Written Statement HLWS789 (8 July 2025, Baroness Merron): DHSC has commissioned an independent evaluation of the Code to assess its impact. Government continues to consider additional policy reforms including addressing cover for criminal acts. The Code remains voluntary and does not constitute the mandatory nationwide safety net recommended by the inquiry.
Written Ministerial Statement HCWS318 (7 March 2024, Minister Will Quince): Medical defence organisations proposed to implement a sector-led Code of Practice for discretionary indemnity cover by end of 2024. The Code would establish principles for corporate governance, fair member treatment, scope of benefits, decision-making, and complaints review, to provide greater transparency around discretionary indemnity. Government announced it would keep wider policy reform options under consideration.