A doctor’s professional indemnity insurance covers the financial risks that medical professionals face in case of negligence.
A mistake at the hands of doctors can lead to death or medical complications. A lawsuit may be filed in case a patient is unsatisfied with the treatment. A doctor’s professional indemnity policy covers such potential liabilities.
Key Takeaways
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Specialization is the Lead Driver: In the 2026 insurance market, doctors are categorized into specific “Risk Groups.” If you are a high-risk specialist (e.g., Neurosurgeon), your base rate will be higher because the “severity” of a potential claim is much greater than that of a family consultant.
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The Payout Ratio (AOA:AOY): Choosing a 1:1 ratio means your full sum insured is available for a single mistake. While this increases the premium, it is the recommended setting for 2026, as court-ordered compensations in India are hitting record highs.
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Deductibles for Savings: You can significantly lower your premium by opting for a Voluntary Deductible. By agreeing to pay the first ₹25,000 or ₹50,000 of a claim yourself, you show the insurer you are sharing the risk, which triggers a discount.
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Clean History Rewards: Just like motor insurance, maintaining a claim-free record is an asset. Always ask for your No-Claim Discount during renewal; some insurers overlook this unless prompted.
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Avoid “Extension Bloat”: Extensions for loss of documents or cyber-liability for patient data are useful, but adding them blindly increases costs. Only select add-ons that align with your specific practice type (e.g., Telemedicine cover for online consultants).
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Revenue-Based Pricing: Be accurate about your earnings. If you under-report your income to get a lower premium, the insurer may apply the “Pro-Rata” rule and reduce your claim payout proportionately during a lawsuit.
So what is the right price to pay for a doctor professional indemnity policy? The policy’s premium depends on several factors. Let’s take a look at them.
Sum insured
The premium is directly proportional to the coverage amount.
The type of risk group covered
The risk a doctor faces partly depends on the area of specialization. For example, the risk in the case of a general physician is presumed to be lower than a surgeon. Thus, the type of risk group determines a doctor’s professional indemnity cost. The higher risk categories invite a higher premium.
Additional Read: What type of doctor has the highest malpractice insurance?
Expected earnings of the doctor
A doctor professional indemnity cost also depends on the expected earnings of the doctor being insured. The claim size increases with the earnings and so do the premium amount.
Limit of indemnity and its ratio
The DPI policy’s coverage is issued in an AOA: AOY ratio. This determines the amount of claim payable with respect to the sum insured. If the ratio is high, then the claim payable is low. Therefore, the cost of the doctor’s professional indemnity is also correspondingly low.
Size of establishment
The size of an establishment determines its premium rate for the DPI policy. The premium charged will be higher for larger establishments and lower for smaller ones, and vice versa.
Renewal pricing
The premium amount changes upon renewal of the policy. It depends on the earlier claims made. The insured may receive a premium discount if they have not made any claims so far.
How to reduce the premium?
Below are some ways to reduce a doctor’s professional indemnity cost.
- Do look for the applicable discounts.
- It is crucial to choose the right coverage.
- Choose only necessary extensions.
- Compare premium quotes to get the best deal.
- You should try to not make claims for small amounts.
- Choosing a deductible reduces the premium amount.
Summary: Factors Influencing DPI Premium
Additional coverage
The DPI policy allows extensions that are optional coverage benefits. The premium increases if an insured opts for these extensions. We, at SecureNow, can help you compare the coverage and premium of multiple policies and get a customized quote.
Frequently Asked Questions (FAQs)
Q1: Why is the premium for a surgeon so much higher than a paediatrician?
Insurers look at “Actuarial Risk.” A surgical error often results in permanent disability or death, leading to massive legal settlements. A paediatrician’s risk, while present, typically involves lower “severity” in terms of financial compensation, resulting in a lower premium.
Q2: Can I reduce my premium if I only practice part-time?
Yes, some insurers in 2026 offer “Pay-As-You-Go” or volume-based models. If you see a very limited number of patients, you can provide your annual turnover/earnings to negotiate a lower risk-based premium.
Q3: Does having multiple clinics increase my individual premium?
Usually, yes. The risk is calculated based on the total volume of patients and the different locations of practice. If you operate in a high-litigation “Metro” area, that specific location will carry a higher risk weightage than a rural clinic.
Q4: Will my premium go up immediately after I make one claim?
On your next renewal, the insurer will likely remove any “No-Claim Discount” you had and may apply a “Loading Fee” (an extra 10%–30%) depending on the size and nature of the claim.
Q5: Is it cheaper to buy a policy as an individual or through a medical association?
Buying through a Medical Association or as part of a Hospital Group is almost always cheaper. Insurers offer “Bulk Discounts” to associations because the risk is spread across hundreds of members.
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.
