Introduction
Being a doctor is a noble profession and is respected by society, but doctors are also humans, and making mistakes is possible in rare cases. This type of unintentional mistakes, like neglect, error, or omission, can lead to a significant loss for the patient. When a patient complains or sues on the issues in a court of law, medico-legal cases will be charged against the doctor. It will harm the reputation of the doctor, and not only that, when the case is proven in court and the doctor is found guilty, it will lead to legal complications and the doctor will be ordered to pay a huge amount as indemnity to the patient. The fine charged can be very high, and this will cause a financial threat to the doctor. Insurance against such situations is provided by insurance companies, and this is called Indemnity Insurance for Doctors.
Vicarious liability is another condition or policy under which a hospital is legally liable for any malpractice committed by its employees, like doctors, nurses, and other health care providers. According to the vicarious liability rule, any employer (including hospitals) is accountable for its employee’s delinquency. Professional indemnity insurance protects medical practitioners from legal charges and cases brought by patients and their family members.
Table of Contents
- What is an indemnity insurance policy?
- Insurance companies which provide professional indemnity insurance for doctors in India
- Sum Assured Value
- The major benefits of Professional Indemnity Insurance
- Who is Eligible for Indemnity Insurance
What Is An Indemnity Insurance Policy?
Indemnity is a contractual obligation of one party to reimburse the loss incurred by the indignant party. Professional Indemnity insurance aims to cover all financial damage for loss caused to victims against unintentional errors of doctors and other medical professionals. Indemnity insurance also covers all court expenses and defense charges, also called decrees of law.
It does not cover any criminal actions of health care professionals or intentional mistakes caused in treatment. An indemnity insurance policy will cover all expenses of unintentionally made medicolegal cases, and if the amount is more than that of the insured, it should be borne by the doctor.
Insurance policies for medical practitioners are provided by various agencies like:
- Indian Medicolegal Consulting Services
- IMA National Professional Protection Scheme
- Professional Indemnity Policies(National General Insurance companies).
Insurance Companies Which Provide Professional Indemnity Insurance For Doctors In India
The list of insurance companies providing Professional Indemnity Insurance policies for doctors in India is as follows:
- Bajaj Allianz General Insurance Company
- ICICI Lombard General Insurance Company
- HDFC Ergo General Insurance Company
- New India Assurance Company
- SBI General Insurance Company
Professional protection organizations handle medicolegal cases, while insurance companies cover indemnity. When a doctor gets a notice from an advocate, a court, or a police warrant, he or she can call the medicolegal firm. There is advice on keeping medico-legal documents. They also consult, inspect documents, prepare documents, and provide advocate assistance in all phases of consumer lawsuits in all consumer forums and appeals to the Supreme Court.
Sum Assured Value:
“Sum assured” refers to the limit of indemnity. This limit is set per accident and policy period and is referred to as the “Any One Accident” (AOA) and “Any One Year” (AOY) limits, respectively.
According to a survey by the National Law University, in Bengaluru, there has been a whopping rise of 400% in cases related to medical negligence filed in consumer courts. Even though only 10–15% of the appealed cases are genuine, where doctors are being found guilty, the medical practitioners in the remaining 85% of cases are left to fend for themselves.
The major benefits of Professional Indemnity Insurance
- Protects from unforeseen risks: The financial burden due to a case can be very high, and this insurance covers it.
- Safeguard your assets from Indemnity
- Pay legal costs: Indemnity insurance also pays court and lawyer charges.
- Safeguard finance and practice: Negligence can lead to loss of fame and cause mental trauma and loss of reputation if a case is made to defame a doctor. Insurance helps to meet the practice charges.
- Boost the confidence of doctors when it comes to unintentional errors.
As a doctor, dentists, or other medical professionals, we must safeguard the patient. In rare cases, unintentional errors, negligence, or faults can occur. There are cases where the doctor may not be at fault, but the patient or their relatives still blame them for failure. Professional indemnity insurance protects against heavy legal expenses.
It is essential for consultants to understand the terms of the policy and to elucidate the exact meaning of every clause of the policy. Then, if a claim is received, they know what they are covered for and what action is required.
Frequently Asked Questions
Q1. What is the purpose of hospital doctors having indemnity insurance?
Ans. Doctors’ Liability Insurance protects the doctors in case of their legal obligation to compensate third parties who may experience injury, monetary loss, or damage to their property through the negligence of the doctor.
Q2. Is it mandatory for hospital doctors to have indemnity insurance?
Ans. It is not mandatory.
Q3. How does having indemnity insurance benefit hospital doctors?
Ans. The following are the benefits:
- Coverage is guaranteed. Issues at initial enrollment are subject to pre-existing condition limitations, if applicable.
- Coverage available for spouses and children
- Benefits are disbursed directly to the covered person without any restrictions
- The insured person may be able to take their coverage with them if they leave their employer.
Q4. Are there any risks associated with not having indemnity insurance for hospital doctors?
Ans: Yes, there are many risks for hospital doctors who do not have indemnity insurance. If they face any unintentional medical errors, they should pay the whole amount of the loss at their own expense. Insurance protects in such a situation.
Q5. Can hospital doctors choose the type of indemnity insurance policy that best suits their needs?
Ans: Yes, doctors have the option of selecting the policy that best meets their needs.
