Medicine is a noble vocation. Your work involves helping ailing persons get relief from health complications. In some cases, it is a matter of life and death. Nevertheless, a doctor can make mistakes. Mostly, these are unintentional and sometimes caused by negligence. Often, the negligence is on part of the support staff or assisting doctors. Sometimes, a patient may die or develop complications. In such situations, the doctor faces liability claims from the patient or the family. Consequently, the doctor or the hospital can face financial stress due to the compensation demands. This is where the Doctor’s Professional Indemnity Policy becomes essential.
Increasingly, patients are blaming doctors. Further, because litigation is so easy, many patients are filing legal suits. For doctors to follow up on these suits is difficult, expensive, and time-consuming. That’s why you must buy a doctor’s professional indemnity. This pays your litigation expenses and, in some cases, the insurer will also support you with legal infrastructure. Further, you will be paid a claim even if it is determined that you were negligent. In that sense doctors, professional indemnity operates as no-fault insurance.
The need for professional indemnity insurance among doctors in India is growing rapidly due to several factors. Firstly, the number of medical malpractice lawsuits and claims for compensation has been increasing over the years. Secondly, the awareness among patients about their rights and legal options has also risen. Thirdly, the cost of defending against such claims and paying compensation can be significant, and professional indemnity insurance provides financial protection to doctors. Finally, many hospitals and healthcare institutions now require doctors to have professional indemnity insurance as a condition of employment. As a result, more and more doctors in India are opting for this type of insurance to protect themselves from potential legal and financial liabilities.
What does this Indemnity Insurance Policy offer doctors?
Coverage against a wide range of liabilities
Firstly, this policy covers different financial liabilities that a doctor or a medical professional might incur, namely:
- Financial and legal liability suffered for breach of duty, errors, and omissions;
- Also, legal costs for defending a possible lawsuit;
- And, third-party compensation or settlement
Additional Read: Comprehensive coverage offered under a DPI policy
Financial security
In case a doctor is a hospital employee, the policy covers the lawsuit’s financial strain on the organization. Also, if the doctor practices independently, the insurance protects her personal wealth against possible penalties and legal costs. This is a big benefit because a large claim can financially ruin a doctor.
Affordable premiums to mitigate the risk
Above all, this policy has affordable premiums compared to the scope of the coverage it provides. Essentially, doctors and hospitals get financial security against unfortunate errors and their consequences at a small premium outgo. Also, doctors may treat the premium as a business expense and reduce their taxes.
Who is covered under Doctors Professional Indemnity policy?
The insurance covers doctors insured under the policy. Also protected are support staff engaged in treatment, hospital officials, hospitals, and clinics. Doctors and healthcare professionals who may face claims or lawsuits for alleged malpractice or negligence are covered under professional indemnity insurance. In fact, even unqualified staff can be insured. However, the important thing is to disclose all these people in the proposal form.
Advantages of an indemnity insurance policy
- Protects doctors and hospitals against possible legal liabilities
- Covers defense costs incurred on defending a lawsuit
- The policy is easily available
- Premiums are low vis-à-vis coverage offered by the policy
- Doctors and hospitals can protect their financial assets
- Optional extensions that can increase the scope of coverage
Additional Read: How the Doctors professional indemnity policy works?
