Professional indemnity insurance is a type of liability insurance which can be given to all the professionals such as Doctors, Lawyers, Architects, Chartered accountants etc. The professional indemnity insurance policy is in demand from the doctors in India due to the rising liabilities in their professional life.
Nowadays we can see family members of patients ransacking the hospitals if the patient is dead or due to any other issue while some people sue the treating doctors and hospitals for their negligence in providing the services. The treating doctor and the hospitals should face the court cases and there would be certain expenses involved in the process. It would be very difficult for the doctors to concentrate on their profession and manage the expenses for court cases. So the professional indemnity insurance policy comes to the rescue of doctors who are in the profession.
Professional indemnity insurance helps with the legal expenses in case of :-
- Loss or damage arising out of professional negligence
- Unintentional breach of copyright or confidentiality
- Loss of documents or the data
- Claim costs or legal costs
- Defamation and libel
The policy can be taken by all the medical professionals such as practicing doctors, medical graduates working as resident doctors, specialist doctors etc. The policy can be taken on an individual level as well as group level. A doctor can take a professional indemnity policy on his own or the hospital in which he/she is working can take the policy on behalf of the doctor.
Professional negligence is the major contributor to the claims under the professional indemnity insurance policy. Professional negligence is the error, omission or an unintentional negligence by the treating doctor during diagnosis or treatment of the patient which results in bodily injury, sickness, adversities or death of the patient.
The professional indemnity policy covers the legal fees incurred and the other costs because of the court proceedings. The policy also pays for the out of court settlements depending on the merit of the case. The amount awarded by the court would also be paid by the insurance company in case of professional indemnity policy.
Sum insured under the professional indemnity policy is known as the limit of indemnity. The limit is fixed per policy period and per accident. Per accident is known as Any one accident (AOY) and per policy period is known as Any one Year (AOY). The ratio of AOA:AOY can range from 1:1 to 1:4 depending on the requirements of the customers. The sum insured should be decided by the insured and pay the premium accordingly to take the professional indemnity insurance policy.
It is important to understand that without a proper professional liability insurance policy the doctors are at the risk of losing their assets and careers. One court case could drain the Doctor of Resources and time. Hence it is advisable to take a professional indemnity insurance policy after consultation with your insurance broker. Professional indemnity insurance for medical professionals in India.