Professional Indemnity Insurance Policy for Doctors - Definition, Coverage, Exclusions, Cost, Add-On Covers, Claims Process, Companies, Benefits, Quotes

What is a Professional Indemnity Insurance Policy for Doctors? - Definition

A Professional Indemnity Insurance Policy for Doctors (also known as Medical Malpractice Insurance) is an Insurance Policy which covers Doctors and other medical professionals against lawsuits alleging Negligence or Malpractice while rendering their Professional Service. The Policy provides coverage to registered practitioners like General Physicians, Pathologists, Surgeons, Dentists, Anaesthetists, etc. against the legal liability arising because of Breach of Professional duty due to any negligent act, error or omission. Hospitals and Nursing homes might avail a group policy for its entire practicing staff which would enable higher discounts.

What are the coverages under a Doctors’ Professional Indemnity Insurance Policy?

A Professional Insurance Indemnity Policy for Doctors protects the Medical Practitioner from lawsuits alleging Negligence, Errors, Omissions committed while rendering his professional service. A Doctors’ Professional Indemnity Insurance Policy will coverage against claims of:

1. Breach of Professional Duty
2. Defamation, Libel and Slander
3. Unintentional Breach of Confidentiality (Personal Information) due to Professional Errors and Omissions
4. Coverage for Bodily Injury or Death caused by a Professional Error or Omission

What are the Exclusions in a Professional Indemnity Insurance Policy for Doctors?

A Professional Indemnity Insurance Policy for Doctors excludes the following:

1. Damages on account of willful neglect or willful misconduct of the Insured
2. Any claim arising due to an incident which occurred prior to policy inception is not covered
3. Any damages that the Insured becomes liable to pay on account of the liability being assumed in a contract or agreement is not covered under the policy
4. Fines, Penalties, Punitive Damages and Exemplary Damages are not covered under a Doctors’ Professional Indemnity Insurance Policy.

What are the Add-On Covers available in a Doctors’ Professional Indemnity Insurance Policy?

A Doctors’ Professional Indemnity Insurance Policy provides the following Add-On Covers:

1. Cover for Loss of Documents including Computer Records
2. Cover for Fraud and Dishonesty of employees
3. Cover for Legal Representation Costs: This Add-On Cover pays for the Legal Representation Costs of the Insured for an official investigation, official examination or official inquiry, in relation to the performance of or failure to perform Professional Services by the Insured

What is the Cost of a Doctors’ Professional Indemnity Insurance Policy?

A Professional Indemnity Insurance Policy with a Limit of Liability of Rs1 Crores costs Rs10,000 for General Physicians and Rs20,000 for Surgeons. The Cost of a Professional Indemnity Insurance Policy for Doctors depends on the following factors:

1. Limit of Indemnity: The Policy Limit of Indemnity impacts the premium of the Doctors Professional Indemnity Insurance Policy. Higher the Limit of Indemnity, higher will be the Policy Premium.
2. Past Claims History: The Past Claims Experience of the Insured impacts the Cost of Professional Indemnity Insurance Policy
3. Area of Specialisation for the doctor also impacts Policy Premium. The cost of a Doctors Professional Indemnity Insurance Policy will be higher for Plastic Surgeon/Anaesthetist as compared to the Premium for a General Physician considering the higher risk profile of their Profession.

What is the Limit of Indemnity under a Professional Indemnity Insurance Policy for Doctors?

A Doctors’ Professional Indemnity Insurance Policy specifies 2 limits: Any One Accident (AOA) Limit and Any One Year (AOY) Limit.

1. Any One Accident Limit: Any One Accident Limit or AOA Limit implies the maximum amount that the Insurance Company will pay for any one incident that leads to a claim.
2. Any One Year Limit: Any One Year Limit or AOY Limit implies the maximum amount that the Insurance Company will pay for any number of claims during the Policy Period (usually 1 year). The Insured can choose the ratio of AOA:AOY Limit (1:1, 1:2, 1:3 or 1:4).

Why should Doctors purchase a Professional Indemnity Insurance Policy?

A Doctor is involved in a high-risk profession and a slight error in terms of incorrect diagnosis, wrong advice, wrong administration of medicine or a mistake in a surgical procedure can adversely impact a Patient’s health. Such errors leave the doctors prone to claims of malpractice by the patient or his relatives. Defending such claims in courts is very expensive and moreover, an adverse judgement might result in doctors having to pay Crores of Rupees in Damages. A Professional Indemnity Insurance Policy covers the Defence Costs and the Damages that the Doctor becomes legally liable to pay on account of Errors or Wrongful Act committed while rendering Professional Service.

Which Insurance Companies provide a Professional Indemnity Insurance Policy for Doctors in India?

Following Insurance companies provide a Professional Indemnity Insurance Policy for Doctors in India are:

1. Bajaj Allianz General Insurance Company
2. ICICI Lombard General Insurance Company
3. HDFC Ergo General Insurance Company
4. New India Assurance Company
5. SBI General Insurance Company

What is the Claims Process for a Professional Indemnity Insurance Policy for Doctors?

The Insured needs to follow the below mentioned steps to file a Claim under a Doctors’ Professional Indemnity Insurance Policy:

1. Intimate the Claim to the Insurance Company or your Insurance Broker as soon as possible
2. Submit the necessary details such as Policy Number, Legal Notice received, Description of the Accident etc.
3. Submit the documents required for a Professional Indemnity Insurance Claim such as ID Proofs, GST Certificate, Claim Form, Legal Notice etc.
4. The Insurance Company examine the facts of the incident and if the claim is admissible, the Insurance Company will provide coverage for Defence Costs and Compensatory Damages incurred in defending the Lawsuit.

Get Best Quotes for a Doctors’ Professional Indemnity Insurance Policy

A doctor is responsible for making decisions regarding the patient’s diagnosis to advising them for their medicines and even conducting surgeries. They make hundreds of small and big decisions with regards to patients in the course of their duty which are critical for a patient’s well-being. A minor lapse in judgement or any negligent mistake has an adverse impact on the patient’s health which result in the patients suing the doctors in Courts.

The frequency of such cases has been increasing by the day and Doctors have been sued even for minor mistakes. Sometimes the court award huge damages which the Doctors may not be able to afford. Any adverse judgement of this kind will impact the Doctor’s financial stability. Thus, a Doctor should protect himself with a Doctors’ Professional Indemnity Insurance Policy.

Qian is an experienced Insurance Broker for a Doctors’ Professional Indemnity Insurance Policy having insured multiple Hospitals and Doctors for the same. You can avail of a free 1-hour for Professional Indemnity Policy Consultation with the experts at Qian. Our team of experts is well versed with the various policy clauses and exclusions to assist you with a comprehensive Doctors’ Professional Indemnity Insurance Policy Coverage.

You will also have the comfort of our experienced Claims Settlement Team which will assist you in getting your claims resolved quickly. Our team will assist you with the Best Quotes for your Doctors’ Professional Indemnity Insurance Policy. Contact us now at insurance@qian.co.in or 📞 022-35134695 . We would be glad to assist you.

FAQS about Doctors Professional Indemnity Insurance Policy