Why is Professional Indemnity Insurance in India becoming increasingly important?

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Doctors deal with many patients every day as part of their job. Doctors are in charge of everything from making decisions about a patient’s diagnosis to guiding them on medications and even performing surgery. Therefore, these selections are essential for a patient’s well-being. You should know about professional indemnity insurance in India. 

A slight slip in judgment or any irresponsible mistake made while carrying out your tasks may negatively influence the patient’s health.

In such circumstances, patients frequently sue doctors in Court, and the courts award substantial damages.

Such cases are growing by the day, and doctors are being sued even for minor errors. The Court may award exorbitant Compensatory Damages which the Doctors may be unable to pay. They may have to liquidate personal assets, such as a clinic or a house, or use up funds to pay the Court-awarded damages.

Doctors should constantly cover themselves with Doctors’ Professional Indemnity Insurance in India to protect themselves (also called the Medical Malpractice Insurance).

If you are a member of a professional organization or company, you can get professional indemnity insurance in India as a group policy that covers all of your colleagues. As additional members are joined, it also gives a cheaper premium.

What is Doctors’ Professional Indemnity Insurance?

A Professional Indemnity Insurance Policy for Doctors in India (also called the Medical Malpractice Insurance) is an Insurance Policy for Doctors that covers Defense Costs and Compensatory Damages that the Doctor (Insured) becomes legally obligated to pay on account of lawsuits filed by patients claiming financial losses suffered due to neglect and errors or omissions that occur in the course of performing Professional Duties. Such negligent behaviors might range from the incorrect prescription or diagnosis to the incorrect surgical treatment, which ends in injury or the patient’s death.

A Doctors’ Professional Indemnity Insurance policy in India will thus cover the Defense Costs and Compensatory Damages incurred due to any error done while you are professionally practicing as a Doctor.

Nursing homes and hospitals may obtain a Group Policy for their whole practicing staff, which would allow for greater discounts.

How does this insurance policy work?

Professional indemnity insurance allows professionals to save money if they have a dispute with one of their clients. Let us look at ways this policy works and how to get the best deal:

  • Consider evaluating your customers and the potential consequences of any of them launching a lawsuit against you.
  • The evaluation will aid in determining the covered amount, which can be done in collaboration with the insurer.
  • Research and analyze the insurance companies and policies available.
  • The premium to be paid is determined by the amount insured.
  • The proposal form and any relevant documentation should be submitted.
  • If there is an emergency, notify the insurance company immediately.
  • The claim form and any supporting documentation must be immediately submitted.
  • Following an evaluation, the claim can be accepted or rejected.
  • If you are dissatisfied with the case’s outcome, you may file a legal complaint.

Doctors’ Professional Indemnity Insurance in India includes a variety of optional add-ons.

Professional Indemnity Insurance Policies for Doctors in India typically include the following add-on protections from insurance companies:

• Medical Practitioner Endorsement: In this endorsement, “Bodily Injury” is added to the definition of loss. This means that any bodily injury, mental anguish, emotional distress, sickness, or disease that a patient suffers due to medical treatment in the practice of the insured, including death, will be included in the coverage under this add-on.

• Documents lost: This extension covers losses due to misplacing documents owned by the Insured or entrusted to the Insured in the course of delivering professional services, and as a result of such loss, the Insured becomes legally responsible for compensating for such damages.

• Confidentiality breach: This add-on cover compensates you for any damage incurred as a result of a claim against the Insured Doctor for unintended disclosure of confidential information while providing Professional Services.

• Defamation (Libel and Slander): As part of the Libel and Slander Defamation Add-On Cover, this policy covers for any claim that arises out of an individual’s right to privacy being violated as a result of the insured profession.

• Employee Dishonesty: This expansion provides insurance for employee fraud and dishonesty.

• Legal Representation Cost Coverage: This extension covers the Insured’s legal representation fees for an investigation against the Insured.

Conclusion:

Professional indemnity insurance benefits both professionals and their clients since it allows professionals to shift liability to the insurer and avoid large claims. The client benefits because if professionals declare themselves bankrupt or waive their liability, the insurance becomes their only realistic choice.

In the absence of a correct definition of the term “professional,” there is an ambiguity that can limit the professional liability insurance’s scope. This is damaging to those who are not regarded as professionals. Therefore, in India, the proper meaning of the term professional must be defined and introduced through amendment.

It is time for India to establish laws requiring mandatory professional liability insurance in various disciplines, with more robust policies and regulations to execute them.

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