Do past claims impact renewal premium for a doctor’s professional indemnity policy?
A doctor’s professional indemnity insurance policy covers legal expenses that might be incurred in the wake of unintentional errors or wrong diagnosis. 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.
The premium is 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 specialisation
- 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. Infact, 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 premium 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 is the premium
- Choose an appropriate limit of indemnity. For surgical specialisations 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?
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.