Insurance companies are seeing a boost in demand for professional liability insurance (PII) in the healthcare field, according to CoverYou CEO and co-founder Deepanker Mahajan, an insurance broker dedicated solely to the healthcare industry.
Speaking to IndiaMed, a media platform for healthcare professionals, Mr Mahajan said, “There has been a tremendous increase in medical malpractice claims against doctors lately in India, with cases under the Consumer Protection Act growing 110% since 2015.“
Outlining other factors that have led to the increase in demand, he said that defending such cases may be very expensive, costing between INR200,000 ($2,382) and INR1m. The new Consumer Protection Act of 2019 has made it easier for patients to claim medical negligence, with tougher penalties and better redress systems. More patients are aware of their rights now—over 60%, according to a 2022 survey by the Indian Medical Association (IMA). Peer influence plays a big role too; in a 2021 IMA survey, 75% of doctors said they bought liability insurance because their colleagues recommended it.
Factors driving growth in demand
Explaining the different coverages for a consultant, surgeon, practitioner, and health coach, Mr Mahajan said that healthcare professionals (HCPs) are given tailor-made professional indemnity insurance (PII) based on their profession and the risks involved in their practice. Consultants pay premiums that differ per specialty and threat level, with higher charges being imposed on high-risk areas like cardiology and oncology as they have several frequent and expensive claims. The risks associated with surgery make surgeons’ premiums higher, those of general practitioners or family doctors moderate reflecting average risk; whereas health coaches incur the lowest costs because of lower risk. High-risk practices such as surgery attract higher rates than low-risk fields like psychology.
For example, neurosurgeons pay between INR50,000 – INR100,000 annually; Cardiologists pay between INR30,000 – INR60,000 per annum; family physicians pay between INR10,000 – INR25,000 for protection every year while health coaches usually pay less than INR5,000 per year.
Geographic location also affects the amount charged due to varying trends in local medical practices and litigation levels. Experience also counts; highly experienced professionals may be offered PII at a relatively cheaper rate while recently qualified or less experienced ones may have to pay more premiums.
CoverYou says that it works with over 75 different medical societies, to make sure insurance plans are tailored for cost effectiveness and customised offerings. It also considers mob attacks as a risk thus covering these incidents such as physical assault and property damage among other things.