Minor change to the PLP deductible formula


Originally published in March 2013

At its meeting on November 15, 2012, Council voted to give the PLP Committee the power to reduce to zero the amount payable by a member who would otherwise be subject to a step-up deductible in limited circumstances, something which was not available under the previous formula. As of January 1, 2013, the PLP Committee has the authority to waive the member’s deductible:

  • in case of the member’s death;
  • in case of the member’s bankruptcy;
  • if the deductible was triggered by the payment of defence costs and, in the opinion of the PLP Committee, the action against the member was without merit.

There is still no ability to request a reduction in the base deductible, and there were no substantive changes to the policies and procedures for requesting a reduction of a step-up.

Any request to waive or reduce a deductible should be sent in writing to the responsible PLP Advisor for presentation to the Committee and should include the reasons for the request and, where appropriate, a description of the measures taken by the member to remediate the deficiencies giving rise to the underlying claim for compensation.

As a reminder, a deductible is triggered by PLP’s incurring costs in defence of a matter, not when a member phones PLP to report an incident or to request risk management advice. Members are encouraged to immediately contact PLP with any patient-related concerns that may give rise to a claim for compensation.

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