According to a report presented by the government, India has a doctor-patient ratio of 1:1457, which is below the World Health Organisation’s mandate of 1:1000. The insufficient number of doctors in the country is one of the primary reasons why lawsuits for medical negligence have increased in recent years.
Out of a thousand such cases, many are unfounded where the accused is not at fault. But the investigation for such a case can continue for several years, resulting in extensive liability for the individual. In such cases, professional indemnity insurance for doctors can help in safeguarding individuals financially, to quite an extent.
Keeping in mind the costs incurred during a legal row, this insurance cover is a necessity when it comes to dealing with various professional risks.
What does a professional indemnity insurance policy cover?
The primary purpose of this insurance cover is to provide indemnity to an individual in case a third party sustains damages due to error, omission or negligence on the insurance holder’s part.
This insurance cover can be availed by individuals engaged in various executive professions, like – doctors, lawyers, architects, etc. With this cover in place, an individual can avail financial compensation for various liabilities that can arise in their professional space.
Following is a list of areas that are covered under this insurance cover, provided by financial institutions like Bajaj Finserv –
It provides comprehensive coverage against legal proceedings arising from a defence case. This includes a lawyers’ fee and other related legal expenses.
It provides compensation for claims arising due to third party damages.
Covers cases arising from breach of employer-employee confidentiality.
Financing for legal counsel in slander and libel cases.
Cover for claims that can arise in due course of providing professional services.
Provides compensation for damages arising due to a professional incident in territories covered under the policy during the policy period.
This policy, thus, covers various civil liabilities that can arise in one’s workplace. It does not, however, provide coverage for any criminal offence or liabilities arising from the breach of law.
Without an indemnity insurance policy, an individual usually has to pay from his/her pocket which can lead to them incurring substantial losses. It is, therefore, pertinent to have these risk-management tools in place to ensure that one’s liabilities in such situations are minimal.
Professional indemnity insurance for doctors, especially, is a major necessity in today’s world to protect one’s interests against unfounded malpractice and negligence lawsuits.
Suggested Read: What is indemnity insurance?
What are the benefits one can avail from this advance?
Having indemnity insurance for doctors and other professions in place can impart several benefits. It is crucial for individuals to learn about these benefits in order to learn how to choose the best indemnity insurance policy for doctors. Some of these are as follows –
This insurance cover helps to stave off unforeseen financial risks which can be damaging to one’s career.
Legal suits can often extend for years and land the defendant with a hefty bill. In such a scenario, the concerned individual’s business might have to pay for these losses arising from legal proceedings. A comprehensive insurance cover prevents this from happening and ensures smooth functioning of the insurance holder’s business.
Often, the accused has to mortgage or sell his/her assets to pay for the compensation for damages arising under such cases. This insurance policy safeguards one’s assets by paying for compensation.
Professional indemnity insurance for doctors and other professionals can, thus, safeguard an individual’s professional and personal interests with all-round coverage. Nonetheless, it is crucial for individuals to check the instances that are not covered under this insurance cover to ensure that they are acquainted with the policy terms.
It is also important to ensure that individuals satisfy the requisite eligibility criteria mandated under the policy to avoid any hassle that might otherwise arise during the indemnity insurance application process.