Talks between the Medical Defence Union and the Department of Health on insuring hosppital consultants have broken down.
In a letter sent on Tuesday the British-based insurer said: "Members and former members should not have an expectation that the board will exercise its discretion to assist with obstetric claims."
At a press conference yesterday Dr Michael Saunders, chief executive of the union, said "there was no point in continuing" with talks.
The negotiations were aimed at resolving an ongoing dispute about insurance cover and working out a plan under which liabilities of hospital consultants would be insured.
This is needed since the Department introduced a new way of insuring consultants under an "enterprise liability" scheme on February 1st. The MDU says it has lost business as a result and cannot guarantee it will be able to fund the liabilities of consultants who were insured in the previous years.
The Irish Hospital Consultants Association said it was concerned about the MDU's withdrawal. "We are equally concerned at any suggestion that the MDU may refuse to provide cover, in the event of a claim; this may leave both patients and doctors financially exposed where it had been reasonably assumed that cover was in place."
The association called on the MDU to honour its commitments to subscribers. A delegation from the IHCA is due to meet the MDU board in London next week.
The Department of Health said it had "devoted enormous amounts of time to trying to resolve this problem with the MDU. Eleven meetings have taken place with the MDU since the beginning of February.
Weeks were wasted while the MDU argued over the small print of confidentiality conditions, which it sought to impose on the Department . . .The Government cannot and will not be dictated to by an indemnity organisation which has got itself into the plight that the MDU has."