Checklist Before Renewing Your Medical Indemnity Policy

- By Team Policy Era

KNOW YOUR CHECKLIST

For doctors, medical practice brings not only the responsibility of saving lives but also the risk of facing legal action. A single negligence claim, whether proven or not, can cause severe financial and reputational harm. This is why medical indemnity insurance is one of the most important safety nets for healthcare professionals.

But having an indemnity policy is not enough. Like medical practice itself, it requires regular review and updating. Many doctors renew their policies year after year without checking whether the cover still matches their current risks. This oversight can lead to gaps in protection, costly claims denials, or inadequate compensation limits.

To avoid these pitfalls, here is a comprehensive checklist to follow before renewing your medical indemnity policy.

1. Reviewing Claim History and Policy Usage

The first step in renewal is to reflect on the past year’s usage of your policy.

• Check for Previous Claims: Review whether any claims were filed, settled, or rejected. Insurers consider claim history when deciding renewal terms.
• Understand Claim Patterns: Were the claims related to misdiagnosis, surgical errors, or patient communication gaps? Analysing these patterns helps identify areas of higher risk.
• Policy Response: Evaluate how well your insurer handled claims. Was the legal support prompt? Were settlements fair? This tells you whether your current provider is reliable or if switching is wiser.

⚖️ Tip: Even if you didn’t file a claim, keeping detailed records of near-misses or medico-legal notices helps when negotiating renewal terms.

2. Updating Coverage Limits Based on Current Practice

Medical practice is dynamic. Your responsibilities, income, and risk exposure may have grown since you first purchased the policy. Renewal is the perfect time to adjust coverage.

• Income Growth: As income increases, potential compensation claims also rise. Coverage should be proportionate.
• Specialisation Risks: Surgeons, gynaecologists, anaesthetists, and radiologists face higher medico-legal risks than general physicians. Coverage limits should reflect this.
• Practice Expansion: Opening a new clinic, hiring junior doctors, or adopting telemedicine increases exposure. Ensure these activities are covered.
• Inflation Factor: Compensation amounts have risen significantly in Indian courts. A cover that was sufficient five years ago may be inadequate today.

Checklist Point: Aim for coverage at least 5–10 times your annual income to ensure adequate protection.

3. Checking for Retroactive Cover Continuity

Retroactive cover is one of the most crucial yet often overlooked elements in indemnity insurance.

• What It Means: Retroactive cover protects you against claims filed today for incidents that occurred in the past, provided you were insured continuously since that date.
• Continuity Clause: If you change insurers or forget to renew on time, you may lose retroactive protection, leaving you vulnerable to old cases resurfacing.
• Backdated Claims: In medical practice, negligence claims often arise years after treatment. Without retroactive continuity, you could be personally liable.

⚠️ Red Flag: Always confirm that your retroactive date remains intact at renewal, especially when switching insurers.

4. Adding or Removing Add-On Features

Indemnity policies can be customised with optional add-ons to suit your practice. Renewal is the ideal time to reassess which features you need.

Common Add-Ons:

• Libel and Slander Protection: Covers defamation lawsuits arising from professional communication.
• Loss of Documents Cover: Protection if sensitive patient records are lost or misplaced.
• Cyber Liability Cover: Essential for doctors using digital records and telemedicine platforms.
• Good Samaritan Acts: Coverage for emergency treatments offered outside clinical settings.
• Staff Errors Coverage: Extends indemnity to mistakes made by nurses, technicians, or junior doctors under supervision.

You may find that some add-ons are unnecessary for your current practice, while others—like cyber protection - are now essential.

5. Comparing Renewal Offers Across Insurers

Loyalty to one insurer is not always the best approach. Renewal is the perfect time to shop around.

• Premium Comparison: Compare not only the base premium but also hidden costs, exclusions, and co-payment clauses.
• Coverage Benefits: Some insurers include medico-legal helplines, out-of-court settlement assistance, and 24/7 legal support.
• Network of Lawyers: Check whether the insurer provides access to specialised medico-legal lawyers in your city.
• Claim Settlement Ratio: A higher claim settlement ratio reflects greater reliability.
• Discounts and Bundled Covers: Many insurers offer discounts for multi-year renewals or bundled policies.

💡 Tip: Don’t just look for the cheapest policy; look for the one that balances cost with comprehensive, practical protection.

6. Preventive Steps Doctors Can Take

Insurance is only one part of risk management. Doctors must also adopt preventive measures to reduce the chances of claims in the first place. Renewal time is an opportunity to reset these practices.

• Strengthen Documentation: Ensure patient histories, consent forms, and treatment notes are detailed and updated.
• Standard Operating Procedures (SOPs): Review clinical protocols and ensure compliance with guidelines.
• Informed Consent: Use simple, transparent language and get signed consent for all procedures.
• Communication Training: Improve doctor-patient communication to build trust and reduce misunderstandings.
• Regular CME Participation: Stay updated with medical advancements to avoid negligence claims based on outdated practices.
• Internal Audits: Conduct periodic reviews of clinical processes to identify risks early.

Preventive action not only reduces claims but also demonstrates to insurers that you are a low-risk policyholder, potentially lowering your premium.

Conclusion

Renewing your medical indemnity policy should never be a routine, automatic task. It is an opportunity to review, update, and strengthen your protection. By checking claim history, updating coverage limits, ensuring retroactive continuity, customising add-ons, and comparing insurers, doctors can avoid costly gaps in coverage.

At the same time, preventive steps, like robust documentation, clear communication, and adherence to protocols, remain essential for reducing medico-legal risks.

In today’s litigious environment, a well-renewed indemnity policy is not just a piece of paper; it is your shield against financial ruin, professional stress, and reputational damage. Take the time to renew wisely, and protect both your career and peace of mind.