This report presents data on the number, nature, incidence and costs of public sector medical indemnity claims for the period 1 July 2004 to 30 June 2005. It describes incidents that gave rise to claims, the people affected by these incidents, and the size, duration and outcomes of medical indemnity claims.This is the third report originating from the Medical Indemnity National Collection (public sector). This report will be useful for policy makers, health administrators, clinicians and health professionals, and health service users.