How is a premium for Doctor’s Professional Indemnity calculated?
A Doctor’s Professional Indemnity Insurance policy covers financial liabilities that medical practitioners face in case of negligence or errors during the treatment. The policy covers legal costs and the compensation amount.
The sum insured and the level of risk determines the premium’s policy.
Below are the factors that determine the premium for Doctor’s Professional Indemnity :
The premium amount is higher if the policyholder opts for a bigger sum insured.
Nature of practice
The premium is higher for specialists like cardiologists, gynaecologists and oncologists. They handle riskier cases compared to general physicians. Similarly, cosmetic surgeons are also considered to be a higher risk category.
Number of individuals covered
The premium depends on the number of individuals covered when the policyholder is a medical establishment. The more the insured, the higher is the premium.
Indemnity limits and the ratio
The doctor’s professional indemnity insurance policy works as per AOA:AOY limit. AOA is the maximum claim payable in an individual case. AOY is the total loss covered in a year. The limits selected and their ratio determine the premium.
A 1:1 ratio is recommended as this allows the entire sum assured to be used up in one incident.
Whereas, a 1:2 ratio means only 50% of the sum assured can be used in a particular case.
Size of establishment
The size of the hospital or the clinic buying the policy also determines the premium. A bigger establishment faces more risk and hence a higher premium.
Experience of doctors covered
Medical professionals with more experience are likely to make fewer mistakes. The premium for experienced doctors is relatively low.
If you opt for international cover the premium will increase because the policy also covers litigation in foreign courts.
The international cover is necessary if you have a practice with medical tourism. Otherwise, a domestic cover should be sufficient.
The premium amount is higher if the insured has already made claims under the policy in the past.
Deductible amount selected
This policy has a deductible amount for each insured. The deductible limit is what a policyholder pays themselves as part of a claim. The burden on the insurer is relatively lower in case of a higher deductible limit. So, the premium is also lower.
It is because of these factors that a policy’s premium is not uniform across holders.
How does SecureNow help
SecureNow provides an excellent Doctor’s PI policy with best-in-class features at an unmatchable price. It is available for various types of medical establishments and covers both General Physicians and specialists like radiologists, paediatricians, cardiologists, and various types of surgeons and dentists.