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47 Medico-Legal J. 3 (1979)

handle is hein.journals/medlgjr47 and id is 1 raw text is: THE MEDICO-LEGAL JOURNAL Founded 1901. Vol. 47 1979 Part One EDITORIAL MDU v. Department of Trade IN 1968 the then Board of Trade stated that the Medical Defence Union was not an insurance company within the provisions of the current insurance companies legislation (the Insurance Companies Acts 1958-67). However in 1974 the law relating to insurance companies was modified by the Insurance Companies Act 1974 and this led the Department of Trade to enquire into the status of the three defence societies, the Medical Defence Union, the Medical Protection Society and the Medical and Dental Defence Union of Scotland. Discussions took place between the two London societies and the Department of Trade in which it became clear that it was the Department's wish to control the defence societies under the provisions of the new Act. The Councils of the societies considered the matter and decided that it was in the best interests of the professions and patients that the societies should remain independent of any government control. It was decided therefore to test the matter in the High Court and the Medical Defence Union commenced pro- ceedings in the Chancery Division. The case was heard by Vice Chancellor Megarry from December 11 th to 13th and in a reserved judgment given on December 21st 1978 the Vice Chancellor made a Declaration that the Medical Defence Union was not an insurance company and did not carry on any class of insurance business within the provisions of the Insurance Com- panies Acts and ordered the Department of Trade to pay the costs of the action. The Medical Defence Union's submission was that for nearly one hundred years it had been providing a large number of services to its members includ- ing advice and assistance on all aspects of members' professional work, repre- sentation at inquests and tribunals and before the Disciplinary Comrhittees of the General Medical Council and the General Dental Council, the defence of members charged with criminal offences arising out of the exercise of their profession and the defence of members sued for negligence and their indemnification against damages and costs. Members pay an annual sub- scription and their requests for assistance are considered by the Council or by