Healthcare professionals today find themselves entrapped in unforeseen challenges amidst heightened awareness of patient rights. The surge in the uptake of professional indemnity insurance in recent times is a testament to the risks of litigation faced by doctors, who are often asked to pay hefty compensation. Sajja Praveed Chowdary, Head and Director, Business, Policybazaar talks about the crucial role of comprehensive professional indemnity (PI) insurance that is crucial in risk management for healthcare professionals
By Sonali Patranabish
There has been an imminent spike in the uptake of PI insurance by healthcare professionals. What factors, according to you, are driving this surge?
The spike in professional indemnity (PI) insurance among healthcare professionals is primarily driven by the rising frequency and scale of medical negligence claims. Over the past three years, we have witnessed a 150-fold increase in PI insurance adoption. This surge stems from heightened litigation risks, amplified by growing patient awareness and expectations of medical care.
Medical advancements, while enhancing treatment outcomes, have added complexity to procedures, increasing the likelihood of claims. Additionally, the pandemic emphasised accountability, further driving demand for risk management solutions like PI insurance. In Tier-2 and Tier-3 cities, awareness campaigns and affordable premiums have played a pivotal role in broadening accessibility.
Healthcare professionals belonging to which specialities, in particular, are turning to PI insurance for risk management?
Surgeons, particularly gynaecologists, cardiologists, and orthopedists, account for a significant portion of PI insurance uptake due to the high-stakes nature of their work. For example, gynaecologists saw a 160 per cent increase in demand between April and November 2024. High-risk specialities such as anesthesiology also demonstrate significant adoption rates.
Beyond invasive fields, general practitioners and radiologists are increasingly recognising the need for PI insurance. This indicates a growing awareness across the medical fraternity, irrespective of specialisation.
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Surgeons, particularly gynaecologists, cardiologists, and orthopedists, account for a significant portion of PI insurance uptake due to the high-stakes nature of their work
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There has been an increased uptake of PI insurance specifically in Tier-2 and Tier-3 cities compared to Tier-1 cities. Could you reason out the causes behind this trend?
The dramatic uptake in Tier-II and Tier-III cities—80 per cent growth in policies sold and 100 per cent rise in policy values—is fuelled by rapid urbanisation and expansion of healthcare infrastructure.
Smaller cities are experiencing rising litigation, often tied to heightened patient awareness and expectations similar to those in Tier-1 cities.
Moreover, insurers have tailored policies to suit the needs of these regions, offering flexible premiums and simplified digital purchase processes. These factors, combined with increased professionalisation among healthcare providers, have driven adoption.
Do the offerings of a certain PI coverage change depending on the speciality? For example, do you have different coverage for a physician and surgeon, given that the stakes are higher for a surgeon?
Yes, PI insurance is tailored to the specific risks of each speciality. Surgeons, given the complexity and stakes of their procedures, typically require higher limits of liability and broader coverage, including complications from invasive procedures.
Physicians and diagnostic professionals, on the other hand, prioritize coverage for diagnostic errors and delays. Insurers also offer add-on coverages, such as extended claims windows or legal support, depending on the speciality’s requirements.
Looking ahead, how do you foresee the PI insurance space evolving? Are there any changes you anticipate in the types of coverage offered to meet emerging challenges?
The PI insurance landscape is poised for significant evolution. With the rise of telemedicine and AI-driven diagnostics, coverage will likely expand to address errors in virtual consultations and algorithm-based treatments. Cybersecurity risks, particularly in data breaches tied to patient information, are another area for integration.
We also foresee an increase in hybrid policies that combine indemnity with property and legal support. Customized policies for emerging risks and region-specific challenges will further shape the industry.
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With the rise of telemedicine and AI-driven diagnostics, coverage will likely expand to address errors in virtual consultations and algorithm-based treatments
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Based on your collaboration with YOSI (Young Ophthalmologist Society of India) to support young eye specialists from litigation risks, do you notice any trend in the risk of litigation among doctors in terms of a specific age group or qualification level?
Our collaboration with YOSI highlights that younger and less experienced doctors face a disproportionately higher risk of litigation. This is often due to patient perceptions that newer professionals may lack the expertise of seasoned practitioners.
Trainees or those with basic qualifications are particularly vulnerable, reinforcing the need for targeted risk management support. While still a nascent focus, such collaborations demonstrate the growing need for specialized coverage in this demographic.
Physical assault and verbal abuse of doctors in India have been hogging the limelight.
During such events, there is often damage to the physical property of hospitals. Does PI insurance cover these elements?
Professional indemnity insurance is primarily designed to cover liabilities arising from malpractice or negligence. Damage to physical property during incidents like assaults falls outside its scope and is typically addressed by property insurance policies.
However, the increasing prevalence of such incidents calls for more integrated solutions. Insurers may explore hybrid offerings that address both professional and physical risks to better support healthcare providers.