The Medical Insurance Advisory Bureau (MIAB) is seen as innovators in the Locum Insurance Market. On many occasions, including Jury Service Cover, Suspension Cover, Revalidation & Loyalty Bonuses, MIAB were first to encourage its insurers to expand on its traditional locum cover. During this time new & existing clients have asked several questions relating to not only the cover in the market, but also MIAB’s types of cover.  With this in mind MIAB has compiled a list of those frequently asked questions and put them to our insurers. Our current panel of insurers include The ACE European Group, AXA Insurance, Ageas Insurance Group, Canopius & the Royal & Sun Alliance

What is Absence based cover?

Absence based cover is underwritten based on absence history of an individual rather than traditional locum cover which is underwritten based on age, sex, smoker status, BMI and pre-existing conditions. The key underwriting question for absence based cover asks “Has there been any absence of more than 10 consecutive days (5 days for AXA) within the last 12 months?”

So how does the 10 day rule differ from Traditional Locum Plans?

Traditional Locum plans will focus on the condition rather than the number of days absent. A pre-existing condition in most cases will be excluded irrelevant of the numbers of day’s absence.

So if I have a pre-existing condition but have no absence history will I be covered for this condition?

If there has been no absence from the pre-existing condition and you are not aware that you are likely to be absent then it is unlikely that any exclusion will be applied.

What happens if I make a claim on my pre existing condition, what happens to my cover?

With absence based plans you are underwritten at the outset and cover is accepted and terms are then issued. Absence based plans are generally offered on an Annually Reviewable basis and your scheme terms may be revised depending on your claims history. However, MIAB offer terms with Continuation of Cover, which will ensure the terms and conditions originally offered won’t be affected by any claims that you make.

I have heard the terms “Annual Renewable & Annual Reviewable” What’s the difference?

Put simply, renewable means the policy will continue to automatically renew under the same terms and conditions whereas reviewable the cover will be reviewed and maybe subject to change.

What is a Guaranteed Premium Rate and how does this work?

A guaranteed premium rate allows you to fix the premium for your locum insurance plan and regardless of the claims made against the book of locum business your premium will remain fixed at that rate.

Are Guaranteed Premium Rates available via Traditional Locum Insurance plans?

There are 3 types of Locum Insurance plans in the market, Absence based, Personal Accident & Sickness and Permanent contracts. Personal Accident & Sickness plans do not offer guaranteed rates, however absence plans & permanent contracts do.

So is a Permanent Contract underwritten the same way as an Absence Plan?

No permanent contracts are underwritten based on age, sex, BMI, smoker status and medical history. They also collate information based on any pre-existing conditions. Therefore the older you become the more expensive you are to insure. Absence cover is based on absence history only and therefore the premium is set regardless of age.

What are the key differences between a Permanent Plan and an Absence Based Plan?

You will find many additional features with an absence based plan which you would traditionally not find in a permanent contract. In addition, with Absence based plans there are no requirements for Locum receipts or sight of accounts in the event of a claim and 100% of the benefit is paid to your account.

Are there any benefits of a Permanent Locum plan against any traditional Absence or Accident & Sickness Locum plans?

Yes, a permanent plan means the insurer is unable to remove the cover at any time. However, if you make a claim(s), although your policy will remain in force, they can increase the rates for the cover so the plan becomes expensive.

What types of policies do MIAB offer?

MIAB is able to not only offer a panel of recognised insurers in the market place but also offer products across the range including Absence Based, Personal Accident & Sickness and Permanent.  This is a feature that makes MIAB unique in the market place - A panel of insurers and all contract advice.

I have selected an Annual Renewable premium, what would cause my premium to increase?

The premium could increase as a result of general increase in the insurer’s premium rates which are generally based on claims of all policyholders.
 

Can I opt out of a Guaranteed Rate if I decide to do so in the future?

Yes, at any time.

Will my premium increase after I have made a claim?

If you have had a claim the premium will not necessarily increase at renewal. Insurance rates generally are reviewed based on claims of all policyholders (rather than individuals) periodically and the rates determined at the review.

How quickly can I expect to receive a payment after I make a claim?

Payments are made 4 weekly in arrears, after your deferrement period has been served. In cases such as Jury service, Adoption leave, etc that don’t incur a deferrement period, claims are generally paid within 4 weeks.

How much of my will weekly benefit will be paid when I make a claim?

100% of the weekly benefit amount is payable for each full working week of an Insured Person's absence after any excess period. For odd days at the end of a period of absence, the weekly benefit is adjusted accordingly. The exception to this is under the phased return option where a maximum of 50% of the benefit is payable for a period of 7 weeks.

What deferred periods can I have with MIAB’S Locum Plans?

The deferment period options are between nil days up to 26 weeks. The most common option selected is 4 weeks. We are also able to offer shorter periods of cover for 26 weeks.

To what age will I be covered under our Locum Insurance Plan with MIAB? 

Cover is provided up to the age of 70 years.

How soon can my Plan start?

Our Underwriting process is very simple. We underwrite based on absence history rather than age, sex, BMI or smoker status. There are also no automatic exclusions for pre-existing conditions.Our aim is to have you on cover within 24 hours, but in most cases, on the same day.

Can I add or remove policy members at any time?

Members can be added or removed at any time. In respect of new members, the persons’ absence details will be required.  In respect of any amendments to the policy members and an appropriate additional or return of premium will apply.

I change my cover; do I have to fill in another application form?

Another form is only required if you increase your level of cover or you decrease your deferrement period.
 

If I have planned surgery will I still be covered?

If you have planned surgery, absence during the first 12 months from your inception date is automatically excluded.  If surgery is planned after 12 months underwriters may consider if any specific terms need to be applied.

Is there a maximum or minimum weekly benefit for each individual?

The minimum weekly benefit is £200 per week.  The maximum weekly benefit is £6,000 per week.

3 years ago I was off for 8 weeks due to stress. I have had no absence since my return and am on no medication, will I be covered?

As the policies are underwritten using your absence in the previous 12 months, this case would not incur any exclusion due to the condition occurring 3 years ago and no subsequent absence.

What happens if I am half the way through a claim and my policy is due for renewal, will you continue to pay for my claim?

We will continue to pay the relevant benefit for claims past the expiry of cover up to the maximum benefit period shown on your policy schedule.

Can I add Nursing and/or Admin staff to the policy?

We welcome all healthcare staff along with ancillary support staff such as practice management, medical secretaries and administrators.

We have found in the past when changing Insurers we need to attend medicals and complete long lifestyle questionnaires, will we need to do this with MIAB?

No. MIAB appreciates time is important for the practice and our application form just asks simple questions relating to recent absence history.

Why shouldn’t I use my Income Protection policy as locum cover?

Traditionally Income protection policies are linked to income and there are restrictions on how much cover is available (normally 60% of your gross income). MIAB’s locum insurance policies do not apply these types of restrictions. In addition a locum insurance plan can sometimes be more cost effective than an income protection plan. All income protection policy details should be discussed with an adviser prior to cancellation and replacement with a locum insurance plan.

We receive re-imbursement from our PCT will this affect any benefits we receive from MIAB’S policies?

No. MIAB’s products are benefit driven, which mean we will pay 100% of the benefit from your policy regardless of any reimbursements received from other sources. We would however strongly recommend that if you have policies with other providers that you check this with your current provider, as it may affect those plans.