Introduction
In the olden days’ doctors were admired for the quality of service they provided to patients. But nowadays, due to the negligence of doctors, patients and their families are suing them and the hospitals for malpractice, and if found guilty, doctors and hospitals are advised by the court to pay compensation to patients. Therefore, Indemnity Insurance is of great importance for doctors.
Doctors, as part of their work, are required to handle a huge number of patients daily. They are responsible for diagnosing the type of illness of a patient, advising patients on what medicines to use and how to use them, and even conducting surgeries. Hence, even the slightest negligence on the part of the doctors will have a bad impact on a patient’s health. In such cases, patients sue the doctor in court, demanding compensation for their health loss and medical expenses. More doctors are coming forward to take indemnity insurance to safeguard themselves from the future loss.
Doctors are guided to take indemnity insurance every year due to the rise in legal proceedings in recent years. There has been an almost 400% increase in legal proceedings against doctors for malpractice. Also, doctors’ profession is the one that faces the risk of financial liability in the course of treatment provided to patients. Hence, they need special protection against financial and legal liability when sued for doctors’ negligence. Indemnity insurance is a protection against this legal liability. Many insurance companies provide various plans to doctors to protect them against legal proceedings.
Table of Contents
- What is Indemnity Insurance for doctors?
- Risk of not having Indemnity Insurance
- Insurance companies providing Indemnity Insurance in India
- Conditions for providing Indemnity
- Frequently asked questions
Indemnity Insurance for Doctors
Professional indemnity insurance for doctors in India is also known as medical malpractice insurance. Indemnity insurance for doctors is an insurance plan that provides financial protection against the legal costs and claims for compensation by patients concerning legal formalities. It is a policy for covering the damages and costs that the doctor will be liable to pay for a legal case filed by a patient in court against the financial losses caused by doctors’ negligence in performing their duty. The negligence shall be a wrong medicine prescribed, a wrong disease diagnosed, or even a wrong surgical procedure that causes injury to the patient or even the patient’s death.
The amount is determined based on the mental stress and confusion that the patient has caused during treatment. The amount to be paid is uncertain, it varies depending on the severity of the case. A huge amount will have to be paid as compensation. Indemnity is a protection against this uncertain risk. The indemnity policy specifies two limits, such as any one accident limit and any one-year limit.
Any one incident limit is the maximum amount that the insurance company will incur for any one incident, whereas any one-year limit is the maximum amount that the insurance company will incur for any number of claims during one year. Usually, most insurance companies limit any one accident to 25% of any one-year limit, which is a ratio of 1:4.
The premium for this indemnity policy depends on the sum insured, past claims, the field of the doctor’s specialization, and the approximate annual earnings of the doctor. The policy doesn’t cover plastic surgery, HIV aids, criminal acts, acts done after intake of narcotics, weight loss treatment, non-compliance with statutory provisions, radiology treatment, or hair transplant.
Risks of not having Indemnity Insurance
Human mistakes are natural, and no one has ever made an error in their life. But sometimes this mistake will cost more, which will put an end to everything. Indemnity insurance is a protection against this professional negligence. It provides coverage for the legal costs incurred in safeguarding the claims and the compensation to be paid. Hence, if doctors have not taken out indemnity insurance, it will cost them a lot, especially specialist doctors like Surgeons, and Anesthesiologists, whose profession is riskier. If the doctors are to face legal proceedings due to any negligence on their part, they will have to bear the entire legal cost and, if found guilty, will have to pay the compensation advised by the court from their income.
Insurance companies providing Indemnity Insurance
The following insurance companies provide Indemnity Insurance for Doctors in India.
- Bajaj Allianz General Insurance Company
- ICICI Lombard General Insurance Company
- HDFC Ergo General Insurance Company
- New India Assurance Company
- SBI General Insurance Company
Conditions for Indemnification
Indemnity insurance for doctors needs the following conditions to be fulfilled to cover the loss to the doctor.
- The loss is due to an unexpected mistake on the part of the doctor
- The negligence by the doctor was not intentional.
- Cost and expenses incurred in India as per Indian law
- Legal compensation for death or injury by violation of professional duty by an insured doctor.
Frequently asked questions
Q1. What happens if a doctor does not have Indemnity Insurance?
Ans: If the Doctor doesn’t have Indemnity Insurance they will have to bear their legal expenses, compensation
Q2. Can a doctor face legal consequences if they don’t have Indemnity Insurance?
Ans: Yes, the doctors shall face legal proceedings even if they don’t have indemnity insurance as it has not mandatory that doctors should take this insurance
Q3. Can not having Indemnity Insurance affect doctors’ reputations and credibility?
Ans: No, indemnity insurance has nothing to do with reputation and credibility. It is financial protection against legal proceedings. If doctors having indemnity insurance are found guilty of negligence, it will be a markdown on their credibility and reputation.
Q4. What are the financial implications of not having indemnity insurance for doctors?
Ans: Doctors will have to pay from their savings the compensation, even if it is a huge amount, and also the legal expenses and cost of legal proceedings.
Q5. Can not having Indemnity Insurance affect doctors’ ability to practice medicine?
Ans: No, it doesn’t have any effect on doctors’ ability to practice medicine, as it is only a financial cover against future losses from legal proceedings
