Doctors with chequered claims histories face a surcharge of up to 200% on their indemnity premiums under a new cap proposed in Federal Government legislation.

But these doctors will also have a choice of insurer for the first time under the current system, with the government promising to force all insurers to make an offer to any doctor.

Currently, each state and territory has an “insurer of last resort” — one of either Avant, MDA National, MIPS or MIGA — that ensures universal cover in exchange for certain taxpayer subsidies.

The insurers are banned from charging anybody more than double the standard premium for other doctors in the same specialty and location.