What is professional indemnity insurance & why should doctors care?
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What is professional indemnity insurance & why should doctors care?

  • Highlights

  • Risks of negligence, omission or error

  • Legal consequences and severe financial setbacks

  • How to protect against financial liabilities/ losses

  • Prepare for unseen risks, keep your assets safe & clinic running



Curing people and treating them from chronic diseases is a noble profession. However, the profession brings along with it serious complications. In case of a mishap, doctors face legal consequences of being sued. If the case is lost, they may face a financial setback as the compensation payable to the patient or his bereaved family can be a hefty sum. This is where a professional indemnity policy could come to their rescue.

What is a Professional Indemnity Policy for Doctors?

A professional indemnity policy provides a cover to doctors against financial liabilities or losses arising from acts of negligence, omission or error. These could be in the form of compensation for any injury caused or death of a patient The policy also covers cost of investigations, cost of appointing a lawyer or any other legal costs; hence, providing all-round protection to doctors.

Why is a Professional Indemnity Policy important for Doctors?

With more and more people entering services-based professions, there has been a growing need for a professional indemnity covers. According to press reports, around 98,000 cases of medical negligence are reported annually in India. Doctors are increasingly getting sued for any errors committed and are thereby facing financial losses. They are liable if a patient incurs injury or dies in the process of treatment. Moreover, legal fees and charges further increase the liability. This can strain a doctor’s finances and has the potential to wipe out his life’s savings. The policy protects doctors from false patient allegations and limits their time, money and reputation being at stake.

Having a good insurance plan relieves you of future contingent losses and makes you confident that you are covered. Bajaj Finserv with its widespread network of 200+ branches, offers you faster services, end-to-end assistance (not only covers your financial and legal charges, but also provides the best lawyers to fight your case) and industry-first benefits such as protection from libel and slander.

How doctors can take their practice to the next level 

What Are the Benefits of Professional Indemnity Insurance?

1. Prepares you for unseen risks
It is difficult to set up a fund with an accurate amount to pay for future compensations. The amount of the legal case may be large or small- and is difficult to anticipate. An indemnity insurance cover helps you to stay prepared for any unscheduled moment.
2. Keeps your practice running
Without a good insurance plan in place, your business might have to pay for the losses incurred from legal suits. The insurance plan prevents this; and, ensures the smooth functioning of your business and job security of your employees.
3. Keeps your assets safe
You may have to sell or mortgage your professional and/or personal assets to pay the compensation. An indemnity insurance cover acts as a financial backup to fall upon in such risky times.
4. Pays your legal costs
With a good indemnity plan in place, you can afford to hire a good lawyer and get the best legal support available. This increases your chances of winning the case. It might help you minimize your losses as well as your reputation.
5. Boosts your confidence
The fear of mistakes shouldn’t come in way of your duties. Professional indemnity insurance helps you approach your professional commitments with more confidence and take greater risks. Without such a cover, you may feel intimidated and be afraid of the consequences at every step thereby reducing your professional output.

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