If a claim is filed but not yet decided by the court, will the premium increase?

Premium adjustments may occur even when a claim is ongoing, as insurers often consider pending litigation as an increased risk and may set aside reserves for potential settlement, subject to underwriting practices.

Does a No-Claim Bonus work similarly to motor insurance?

In many professional indemnity policies, a No-Claim Bonus or discount may be offered if no incidents or claims are reported during the policy year. The exact structure varies by insurer and policy terms.

Can switching to a new insurer avoid premium loading?

When changing insurers, previous claims history is typically considered during underwriting. While different insurers may offer varied pricing, past claims may still influence premium terms and conditions.

If a claim is dismissed by the court, can premium loading be removed?

If a claim is resolved without liability, policyholders may request a review of premium adjustments at renewal. The insurer may reassess terms based on the outcome and supporting documentation, subject to underwriting discretion.

What is a common mistake during renewal after a claim?

Accurate disclosure is essential. Failure to disclose past claims or ongoing legal matters may affect coverage validity and future claims, as policies are issued based on complete and truthful information.

Past claims impact premium for a doctor’s professional indemnity

Doctors Professional Indemnity

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A doctor’s professional indemnity insurance policy covers legal expenses that might be incurred in the wake of unintentional errors or wrong diagnoses. It provides financial protection to doctors from third-party claims and legal costs incurred while defending lawsuits. Moreover, the policy also covers compensatory settlements payable to third parties. The tenure of the doctor’s professional indemnity insurance policy is usually a year. Let’s know about the past claims impact renewal premiums for a doctor’s professional indemnity policy.

Key Takeaways

The “Loading” Factor: If you make a claim, expect your renewal premium to rise. This “loading” isn’t a penalty, but a recalibration of your risk. Surgeons typically see higher loading percentages because their claims often involve higher settlement amounts.
Loyalty vs. Portability: While switching insurers (Porting) can get you a lower rate, staying with a consistent provider has benefits. A long-term insurer is more likely to be lenient with a one-off claim than a new insurer who only sees your recent history.
Negotiation Levers: You can offset a “claim-driven” premium increase by adjusting other variables, such as increasing your voluntary deductible or opting for an India-only territorial limit.
Documentation as a Defense: Insurers value doctors who maintain rigorous patient records. If you can show that a past claim was a “misadventure” rather than “negligence,” it may be possible to negotiate a lower loading fee.
Threshold for Porting: If your current insurer increases your premium by more than 30% due to a claim, it is a signal to explore the market and compare other plans that might offer a fresh “clean slate” rate.

The premiums are based on the following parameters:

Sum insured
Limit of an indemnity fixed under the plan
Policy extensions added to the coverage for customization
Doctor’s area of specialization
The scale of the doctor’s work
Size of the establishment if it is the policy buyer

However, past claims do impact the renewal premium.

Impact of claim history on renewal premium

An additional amount called loading can be added to the premium on renewal. In fact, the loading depends on the ‘risk’ of the insured individual. Clearly, the risk is higher if the doctor has already made a claim or faces ongoing litigation. An adverse claims history suggests one of two things. Either, the practice is riskier. Or, the doctor has a tendency to be negligent. So, in both these cases, insurers will increase premiums due to the perceived higher risk. This loading can be between 10 and 50%. This loading is higher for surgical areas where the risk is more. However, on the other hand, a premium discount can be availed during renewal if no claims have been made during the policy year.

Also, one of the advantages of renewing your insurance regularly with the same insurer is that the insurer has access to claims history over many years. This means that they will be willing to overlook an occasional claim.

Negotiating for the best renewal premium

Below are some tips to get the best deal on the renewal premium for a doctor’s professional indemnity insurance policy:

Pick add-ons that you surely need
Opt for policy deductibles. So, the higher your deductible the lower the premium
Choose an appropriate limit of indemnity. For surgical specializations, this should be at least Rupees 1 crore. However, for non-surgical areas, smaller amounts may be okay
Select an India-only cover if your clientele is local.

However, while seeking to reduce the premium the essential quality of coverage should not be compromised. Moreover, at the time of renewal one can port to another insurance company. It will again depend on who offers the best coverage benefits at the most competitive premium rates.

Additional Read: Who is the right insurer to buy a doctor’s professional indemnity?

Summary: Claims Impact on Renewal

Feature	Details	2026 Market Insight
Premium Loading	An increase of 10% to 50% after a claim.	Higher for surgical fields where “risk per incident” is greater.
No-Claim Discount	A percentage reduction for a claim-free year.	Rewarded to doctors with strong “Loss Prevention” protocols.
Risk Perception	Claims suggest a “riskier practice” or “negligence.”	Insurers look for patterns rather than isolated incidents.
Loyalty Benefit	Long-term insurers may “overlook” an occasional claim.	Staying with one insurer creates a “claims buffer” over time.
Portability	Option to switch insurers at renewal.	Useful if your current insurer applies excessive loading.

Why SecureNow for doctor’s liability insurance

SecureNow will help you pick the best coverage at an affordable premium. It gives you a platform to compare different PI insurance plans. We can assist in negotiating the best premium at the time of renewals if past claims are driving up the amount. You can also compare other plans and port to another insurer at the time of renewal.

Frequently Asked Questions (FAQs)

Q1: If a claim is filed against me but the court hasn’t decided yet, will my premium still go up?

A) Yes. Insurers often apply loading based on “ongoing litigation.” Because the insurer must set aside a “reserve” (a pool of money) for your potential settlement, they perceive the risk as higher immediately upon the filing of the claim.

Q2: Does a “No-Claim Bonus” work like car insurance?

A) Similarly, yes. If you go through a policy year without any reported incidents or legal notices, many insurers offer a discount on the base premium for the following year. This is a reward for maintaining a low-risk medical practice.

Q3: Can I avoid “loading” by switching to a new insurance company?

A) Partially. When you “port” your policy, the new insurer will ask for your claims history. While they might offer a competitive rate to win your business, they will still factor in your past claims. However, a new insurer may be more aggressive in offering a lower starting rate than your current one.

Q4: If the claim was frivolous and dismissed by the court, can I get my “loading” removed?

A) Yes. If you can provide a court order showing the case was dismissed with no negligence found, you can negotiate with your insurer to remove the loading and restore your “No-Claim” status for the next renewal cycle.

Q5: What is the biggest mistake doctors make during renewal after a claim?

A) The biggest mistake is non-disclosure. If you hide a past claim or an active legal notice to get a lower premium, the insurer can cancel your policy and reject any future claims on the grounds of “misrepresentation” or “fraud.”

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.

Tagged: Doctor’s Professional Indemnity