When you think you have got your Locum Insurance under control up pops another little phrase that changes everything.
You could quite easily miss this one. It is usually in the definitions section of the Locum Insurance Policy. It relates to the definition of Illness and it reads like this – “Illness that is first diagnosed after the effective date of the policy”. In other words when you sign up for this type of cover any condition/illness that you have had in the past will not be covered.
This is a very good way from the Locum Insurance insurer’s point of view of getting rid of any claims where an illness/condition manifested itself prior to the Locum Insurance Policy being taken out. It could also include a condition that you consulted your medical practitioner about in the past, but did not claim any time off work.
This makes a huge difference to the cover and could end up with the practice being left with a large hole in the practice coffers!
Here is just one example of Locum Insurance claims that would not have been paid using the above definition:
Consulted my GP several years ago and was told to “take it easy” – onset of depression. No time off work and no medication prescribed. Didn’t take the advice. Now worse than ever – Need time off work and medication. The claim for this would be rejected as the condition was first diagnosed 2 years ago, prior to the effective date of your insurance.
The cost to the practice – Just work it out – x number of weeks off times y £s per week – Say 13 weeks off at £2000 per week (the practice agreement will probably say that the first 4 weeks of illness are paid by the practice) which leaves 9 weeks at £2000 per week – £18000. This is a conservative estimate.
Twelve words in a Locum Insurance wording can cost a lot of money!
Medical Insurance Consultants