Concept of AOA and AOY
The sum insured provided by professional indemnity insurance for doctors is referred to as the limit of indemnity, and this limit is defined for each incident and within each policy period. The limit is classified into an AOA limit and an AOY limit. AOA in insurance refers to the maximum amount that the insurer will pay for a single claim, which is typically a fraction of the AOY limit. AOY, on the other hand, refers to the total amount available for all claims within one policy year. While purchasing professional indemnity insurance, the insured has to choose the ratio of AOA and AOY in insurance, which can range from 1:1 to 1:4.
Exclusion
It’s important for doctors to know what is not covered under professional indemnity insurance. Here are the circumstances which fall under exclusions:
- If treatment or surgery is done under the influence of alcohol or drugs and the patient sustains an injury, the insurer cannot provide any protection to the doctor.
- If you transmit or contract AIDS, HIV or any related condition, insurance will not provide coverage.
- If you perform any cosmetic surgery, which is not medically necessary, such as botox, or liposuction, the claims filed will be denied.
- Your professional indemnity insurance will not cover any genetic damage to the patient or third-party, which was caused due to medical negligence.
- Hiding a patient’s information required for treatment or purposefully providing wrong treatment to the patient is excluded from coverage.
Conclusion
Professional indemnity insurance protects medical practitioners from lawsuits and legal claims filed by patients for medical negligence. While buying the policy, make sure you have understood AOA meaning, AOY, inclusions, exclusions and terms and conditions.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.