Doctors used to be revered during earlier times in India. Even today, despite changing times, it is difficult to ignore the importance that society gives to a doctor. However, even doctors are human, and they can commit errors and mistakes. With the evolution of laws, such negligence and error in judgments can be costly. In this article, we will get to learn the importance of Professional Indemnity Insurance for doctors.
As a professional, it is not your motive to hurt your patients physically or financially. But situations may arrive where a major decision could quickly lead to a loss for the patient. As a medical practitioner, this makes you liable for the entire loss, or some part of the loss suffered by the patient.
Again as a professional, one or two failures of your decisions should not affect your practice. Professional indemnity insurance for doctors covers various types of medical practitioners and medical establishments from such setbacks, which usually have a financial impact on the doctor as well.
Importance of Professional Indemnity Insurance
According to a recently published study, legal proceedings alleging negligence have seen a rise of 400% in the Supreme Court. Although according to reports, only about 10- 15% of the cases have seen doctors being found guilty, the remaining 85% of medicos nonetheless had to incur the cost of defending themselves.
Indemnity insurance for doctors takes care of such expenses, without denting your pocket. Also, it is important to understand that the insured doctor will not get the coverage the insurance if found guilty of criminal misconduct, or deliberate negligence.
Additional Read: What are the exclusions of professional indemnity policy for doctors?
Uncertain Penalty Amounts
There is no formula to estimate an appropriate penalty in case a patient loses a limb or an organ. Thus the cost can be extremely exorbitant at times. So when the affected patients sue the doctors, they need special insurance so that they can safeguard themselves financially from penalties and legal costs.
Other Medical Professionals
Many insurance providers provide protection schemes to doctors to protect them in their practice. For a healthcare establishment, indemnity insurance for medical staff is also necessary. Liability Insurance for other professionals is also available. A hospital can also insure itself and its practitioners, staff, nurses, etc. under an umbrella policy.
Conditions for Indemnification
In any case, the doctor’s professional indemnity insurance scheme traditionally requires the following conditions to be fulfilled to indemnify the loss to the doctor:
- The loss to the victim is not an outcome of willful neglect
- The loss is due to unplanned errors and omissions by the doctor
- Legal liability can arise because of bodily injury or death caused by a breach of professional duty by:
- The insured doctor
- The support staff (in the case of hospitals if insured)
- Other officials or instruments involved in the medical activity if covered
- Defense costs, fees, and expenses incurred in India in accordance with Indian Law
What to Expect from Doctor’s Professional Indemnity?
Professional indemnity insurance for doctors offers wide coverage for the claims made by patients for negligence or wrong treatment or accidents are mostly covered. It also offers to cover the costs of litigation, court fees, and settlements.
Policy Exclusions:
- Doesn’t cover criminal acts, duplicity, penalties, or punitive damages.
- Insolvency of the insured
- Loss of goodwill, private damages
Doctors are lifesavers but even a lifesaver can sometimes commit a mistake that can affect anybody’s life, and reason can be completely unintentional. Anybody can make mistakes, but a doctor’s mistake can cause a lot of repercussions. A physician’s motive while treating is always to make sure that the patient gets better – but errors can happen anywhere.
