As previously advised, the Psychology Board of Australia (the Board) has introduced new standards for professional indemnity insurance for psychologists which will apply from 1 July 2010. Financial members of the VPA are covered by the VPA’s group policy up to 30 June 2010.

In our opinion the VPA group policy does not meet the new Board’s requirements. Members should take out their own PI policy from 1 July 2010.

We will not be including psychologists in the Union group policy after 1 July 2010.

Members who do not have a private practice have asked us whether or not their employer would cover them for malpractice or alleged malpractice. Even though employers have a vicarious liability in relation to the actions of employees, we are not confident that employer PI policies will comply with the requirements of the Board.

An individual policy will cover you for representation at the Psychologists Board, should a complaint be made against you. It will also provide independent representation for Coroner’s Court matters or complaints to the Health Services Commissioner. An employer group policy even if it was otherwise compliant with the Board’s requirements, would not provide you with your own representation in these circumstances – or any representation in relation to complaints to the Board.

We therefore advise employed members with no private practice income to take out their own individual PI policy from 1 July 2010. Clearly members with private practice income need to do so.

We have negotiated attractive premiums for VPA members with the IH Group. You can  find further information on the VPA Inc website at www.vicpsych.org.au – go to the IH Group button on the right hand side. Note that the Board does not mandate any minimum level of cover. www.psychologyboard.gov.au