Subject to section 523(1), where under a contract of insurance a claim is made to an authorised insurer in respect of relevant medical expenses -

(a) the insurer shall, subject to section 529A, discharge the claim by making payment to the extent of the amount of the benefit, if any, due under the contract -

(i) to the practitioner who provided the professional services to the subscriber or member concerned to whom the relevant medical expenses relate, or

(ii) to the employer of the practitioner who provided the professional services to the subscriber or member concerned, where the professional services to which the claim relates were provided by the practitioner in the practitioner's capacity as employee rather than on the practitioner's own account,

and

(b) the subscriber or member, as the case may be, shall be acquitted and discharged of such amount as is represented by the payment as if the subscriber or member had made such payment.