Professional indemnity insurance is a specifically designed insurance policy, which provides coverage to the target group which includes doctors, architects, lawyers, chartered accountant, and medical practitioners. Professional indemnity insurance protects their business from the legal claim.
As per the recent survey conducted by National Law University, Bengaluru, there has been an escalating rise of 400% in cases associated with the medical negligence filed in the consumer court. Even though, 10-15% cases are genuine the rest 85% cases are left to defend for themselves. Thus, the need to be legally and financially insured is gaining popularity to protect the doctors against any type of legal claim.
Further in this article, we have discussed in detail about Professional Indemnity Insurance for Doctors.
What is Professional Indemnity Insurance for Doctors?
Professional indemnity Insurance for doctors is specifically designed to provide coverage against accountabilities arising out of any omission or error committed while offering services to their respective clients. This policy is eligible for a medical practitioner such as a surgeon, physician, pathologist, cardiologist, etc. The policy insures legal charges to be paid by the professional for the damage of the third party while offering the service. The legal cost that occurred in defense of the case is subject to a limit. The policy provides coverage against the civil liability claim only. Any claim resulting from criminal or unlawful activity is not covered under the policy.
Inclusions of Professional Indemnity Insurance
Let’s take a look at the inclusions of Professional Indemnity Insurance.
- The nature and scope of coverage vary with the profession. For medical professionals like physicians, cardiologists, pathologists, and surgeons, the policy protects against the legal charges claimed by the patient due to death or any bodily injury. The policy also covers the defense cost, where the insured can add other consulting doctors, partners or assistants working under them.
- The policy provides coverage against unintentional omissions or errors.
- It protects against the cost of defending oneself in the court of law.
Exclusions of Professional Indemnity Insurance
Professional Indemnity insurance may not provide coverage against the claim arising from the following reasons for a practice.
- The medical treatment is given for plastic surgery, weight loss, genetic damage, and any conditions related to AIDS.
- Penalties, disciplinary, criminal acts, fines, and exemplary damage.
- Loss of goodwill.
- Deliberate act, intentional non-compliance, willful neglect.
- Medical practice is done under the influence of narcotics or alcohol.
Compensation from the Insurance Company
The policy pays the sum assured amount that was set as a limit for a specific cover. Any expense beyond that limit is borne by the medical practitioner additionally. The cover offered to the practitioner is decided based on factors such as the risk involved in practice and the probability of a situation that may lead to a lawsuit.
The sum assured offered by the policy is referred to as a limit of indemnity and is defined as per policy period and accident. It is called as Any One Accident limit (AOA) and Any One Year limit (AOY). The insured person needs to choose the ratio of AOA and AOY while purchasing the policy and based on that the coverage is offered against the legal claim for each accident or incident of negligence.
Wrapping it Up!
As nowadays people have become more aware of their rights, it is very important for doctors to have professional indemnity insurance so that their legal and financial implications of medical practice can be taken care of.
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