The market is ripe for innovation, providing an exciting opportunity for clinicians.
For many newly qualified consultants, the cost of indemnity is one of the biggest barriers to setting up in private practice. The GMC requires all doctors in private practice to maintain indemnity or insurance in respect of claims from patients. Private hospital groups also now have their own detailed requirements setting out the level of cover required. In many cases, premia will run into many tens of thousands of pounds per consultant, which must be paid up front by the consultant before a single patient is treated.
The UK indemnity market is dominated by three large mutuals, known as Medical Defence Organisations (MDOs), each of which was founded over a century ago. Between them they indemnify over 80% of consultants in private practice, and whilst they have served the profession well in the past, their mutual members’ club approach is considered by many to be outdated and no longer fit for purpose. Indeed, the sector is awaiting a response to a Government consultation which asked whether fundamental reform of medical indemnity is required.
Recognising that the discretionary cover offered by mutual societies is both expensive and inadequate, we have partnered with the one of the world’s largest insurance brokers to offer a group insurance scheme that will provide our clinicians with, not only substantial savings when compared to the traditional medical defence organisations but also a higher standard of medical indemnity cover.
A new approach to Indemnity Insurance
Contractual indemnity is provided by way of a contractual guarantee in the form of an insurance policy. The policy clearly stipulates what is covered and what is excluded and you have the ability to make an informed decision and always be aware of where you stand with regard to coverage. Contractual indemnity is provided by insurers who are also governed through the Financial Conducts Authority and have a transparent complaints process with an arbitration process managed by an independent Ombudsman.
Discretionary indemnity merely entitles you to ask for assistance and indemnity when an adverse event leads to the need for assistance on how to deal with it or results in a formal claim. You have no guarantee of indemnity, only the right to have your request considered reasonably. Discretionary indemnity is not allowed in other EU member states (except Ireland and Malta), which either have state indemnity or require insurance. Discretionary indemnity has no independent influencers in the event of a disagreement.
We believe that the modern business of healthcare, operating in a fast-changing and litigious environment, demands the certainty of contractual insurance combined with a flexibility of approach to adapt to the new patient care models that are emerging.
