Pricing for a doctor’s professional indemnity
A professional indemnity insurance policy covers doctors against third-party liabilities. A lawsuit filed in case of wrongful treatment or negligence can be expensive.
The premium charged depends on many factors including the coverage and likelihood of the claim. Moreover, every insurance company follows its own pricing policy. The premium varies even if the coverage benefits are the same.
Key Takeaways
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The Deductible Trade-off: Increasing your deductible (the amount you pay before insurance kicks in) is the fastest way to lower your premium. For a large hospital, setting a ₹1 Lakh deductible can lead to substantial annual savings.
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Specialization Accuracy: Insurers price based on the “risk of life.” A neurosurgeon will always pay more than a pediatrician. Ensure your insurer knows your exact scope of work to avoid paying “blanket” high rates.
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The 1:1 Safety Net: While a 1:2 AOA:AOY ratio is cheaper, it limits you to only 50% of your sum insured per claim. If you face one large lawsuit, you could be left under-covered despite having a high total limit.
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Geographical Optimization: Many modern policies include “Global Coverage” by default. If you do not perform tele-consultations for international patients, removing this extension can lead to an immediate discount.
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Experience & History: In 2026, a “clean” claims history for 5+ years is a powerful negotiation tool. Some insurers offer “No Claim Discounts” (NCD) similar to motor insurance.
Additional Read: What is the right price to pay for DPI cover?
However, one can negotiate the premium rate on the following –
Sum insured
The premium is directly dependent on the sum insured. A suitable sum insured helps in negotiating the premium. However, we caution you from keeping the sum insured too low. So, doctors with surgical practices should have at least Rs 1 crore of cover. Non-surgical specialties can have lower.
Coverage benefits
You could remove some of the unnecessary covers and extensions. For example, if your patients are based in India then an international cover is unnecessary. This will reduce the premium.
Deductibles (also called excess)
The deductible is the amount that you must pay yourself before the insurance kicks in. So, a higher deductible means that you will have more out-of-pocket expenses but also that the premium will be lower. So, ideally, you want to set deductibles for small costs that are paid by you and only the larger expenses by the insurer. For an individual practitioner, a deductible of about Rs 15,000 should be okay. For larger hospitals, the deductible could be as high as Rs 1 lakh.
AoA:AoY ratio
This stands for Any one Accident: Anyone Year. Ideally, this should be set to 1:1 so that you can claim 100% of your sum assured in one claim. However, if you want to reduce cost, then consider a ratio of 1:2 which means that you cannot claim more than 50% of the sum assured in any one claim. Clearly, a higher AoA:AoY ratio reduces premiums.
Summary: Factors Influencing DPI Pricing
| Pricing Factor | Impact on Premium | Strategic Tip |
| Sum Insured | High (Primary Driver) | Surgical roles should target ₹1 Crore+; avoid under-insuring to save a few thousand rupees. |
| Specialization | High | Risk is categorized by your medical branch. Ensure you are not misclassified (e.g., as a surgeon if you only do OPD). |
| Deductibles | Moderate | Higher deductibles (e.g., ₹15k–₹1L) lower the premium by showing you are willing to share the risk. |
| AOA:AOY Ratio | Low to Moderate | A 1:1 ratio is pricier than 1:2 but is significantly safer for high-risk practitioners. |
| Territorial Scope | Low | Remove “International Coverage” if your practice is strictly within India to shave off costs. |
Buying through SecureNow
SecureNow is a marketplace that allows you to compare premium quotes of different insurance companies. We will help you negotiate and find the best professional indemnity insurance policy. SecureNow will also help you understand the coverage’s nuances.
Frequently Asked Questions (FAQs)
Q1: What is a “Compulsory Deductible” vs. a “Voluntary Deductible”?
A) A compulsory deductible is fixed by the insurer (e.g., ₹5,000) and cannot be changed. A voluntary deductible is an extra amount you choose to pay out-of-pocket per claim to reduce your annual premium.
Q2: Will my premium increase if I move my clinic from a rural area to a metro city?
A) Generally, yes. Insurers view metro cities as higher risk due to a more litigious population and higher legal/medical costs, which often leads to larger court-awarded settlements.
Q3: Does the premium change if I hire more junior doctors under my practice?
A) Yes. Most policies charge an additional premium for “Assistants” or “Partners.” It is vital to declare them so that the policy’s Vicarious Liability clause covers their mistakes as well.
Q4: Can I pay my premium in installments (EMIs)?
A) As of 2026, many Indian insurers offer EMI options for higher premium amounts (usually for hospitals). However, individual practitioners typically pay the annual premium upfront to ensure there is no “gap” in coverage.
Q5: If I reduce my premium by choosing a 1:4 AOA:AOY ratio, is it worth the risk?
A) For most doctors, no. A 1:4 ratio means you can only claim 25% of your sum insured per incident. If you are sued for ₹1 Crore but have a ₹1 Crore policy with a 1:4 ratio, the insurer will only pay ₹25 Lakh, leaving you to pay ₹75 Lakh yourself.
About The Author
Saloni Mishra
MBA Insurance Management
With an illustrious career in the insurance sector, Saloni is a distinguished writer specializing in articles concerning doctor professional indemnity policies for SecureNow. Leveraging 12 years of hands-on experience, she understands the intricate nuances of professional indemnity insurance tailored specifically for medical professionals. Her articles offer invaluable insights into the significance of doctor professional indemnity coverage, addressing the unique risks and challenges healthcare practitioners face. Renowned for their expertise and attention to detail, Saloni is committed to providing readers with informative and actionable content that empowers them to make informed decisions regarding their insurance needs.
