What is Professional Indemnity Insurance for Doctors?

Professional indemnity insurance for doctors is a type of liability insurance that covers doctors against legal claims arising from their professional services. It protects doctors from the costs of defending themselves in court, paying compensation to patients, or settling out of court. It also covers errors, omissions, negligence, malpractice, breach of confidentiality, and loss of documents related to their practice.

Features and benefits of Professional Indemnity Insurance Policy

  • Customisable amount: Get coverage up to Rs. 1 crore with indemnity insurance for doctors based on the size of your practice, identifiable risks, etc.

  • Best-in-market premiums: Keep your policy affordable with premiums starting at Rs. 9,440 for Rs. 50 lakh coverage.

Coverage amount (in Rs.)

Premium incl. GST (in Rs.)

Deductible for every claim (in Rs.)

50 lakh

9,440

2 lakh

1 crore

12,980

3 lakh


What is covered under an Indemnity Insurance Policy for Doctors?

An Indemnity Insurance Policy for Doctors covers the legal liability of medical professionals arising from errors, omissions, or negligence in their services. It also covers the defense costs, compensation to patients, breach of confidentiality, and loss of documents related to their practice.

  • Exhaustive coverage
    Stay financially protected against a wide range of professional risks and legal liabilities
  1. Defence costs
  2. Third-party damages
  3. Breach of confidentiality
  4. Libel and slander
  5. Loss of documents
  6. Claims arising out of professional services
  7. Damages for loss arising out of a professional incident that takes place in the coverage territory during the policy period
  • Dedicated claims team
    Get in touch with your relationship manager via call or mail anytime you need to claim insurance.
  • Speedy claims redressal
    Have the settlement amount confirmed within 30 days of receipt of the details/ documents as per policy terms and conditions.
  • Easy claims process
    Get your claim in 3 easy steps: Claim intimation, document submission, and claim settlement.

What is a professional indemnity insurance policy?

Professional indemnity insurance for doctors is liability insurance that provides coverage against professional risks such as negligent misdiagnosis, incorrect medicine dosage, surgery-related procedures, and wrong course of treatment. It provides coverage if a patient or any third-party claims injury, harm, death, or financial loss due to the insured medical practitioner’s service, consultation, or advice. It can also protect doctors from any libel or slander.

Why is Professional Indemnity Insurance an Important Purchase?

Professional indemnity insurance stands as a crucial investment for individuals and businesses alike due to its protective umbrella against financial liabilities stemming from professional negligence or errors. This insurance shields professionals, such as doctors, lawyers, architects, and consultants, from bearing the full brunt of legal costs and compensation payouts in case a client sues for damages due to alleged mistakes or omissions in their services. Without this coverage, professionals risk substantial financial losses and reputational damage, which can jeopardise their livelihoods and businesses. Moreover, in today's litigious environment, where even a minor error can lead to costly litigation, having professional indemnity insurance provides peace of mind and financial security, allowing professionals to focus on delivering quality services without the constant fear of litigation looming over their heads.

How does indemnity insurance work?

For medical practitioners or doctors, medical indemnity insurance works as a shield that protects them against any allegations that may be made due to an unfortunate mishap whilst performing a medical procedure. Such incidents can come with heavy expenses. An indemnity insurance covers the expenditure resulting from any litigations without digging a hole in your savings. Here, the insurer charges a premium and in exchange, promises to cover doctors/ medical practitioner against such expenses.

Types of professional indemnity insurance in India

There are mainly 3 types of professional indemnity insurance cover that you can get:

  • Malpractice insurance: This is generally designed for medical professionals, and can be used in cases where a mistake causes harm to a client.
  • Errors and omissions insurance: This is designed for business professionals. It protects against the financial risks that come with carelessness, mistakes, and omissions. It also pays for the cost of defence.
  • Civil liability insurance: This covers all the risks that are not included in basic personal indemnity insurance policy.
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What is not covered under an indemnity insurance policy?

Professional indemnity insurance (PI insurance) for doctors does not cover the following:
  • Medical treatment given for weight loss, plastic surgery, genetic damage, and conditions associated with AIDS
  • Criminal acts, penalties, fines, punitive, and exemplary damages
  • Intentional non-compliance, wilful neglect, deliberate act
  • Loss of goodwill
  • Medical practice done under the influence of alcohol or narcotics
  • Losses arising due to an act of war/ terrorism/ invasion
  • Losses arising due to fraudulent claims or contractual liability
  • Claims based upon/ or losses/ liability arising due to any actual or alleged unfair competition
  • Losses arising due to insolvency or bankruptcy

Who can take the professional indemnity policy?

Professionals like doctors, accountants, lawyers, etc., can avail of professional indemnity insurance in India to provide them with coverage against any third-party claims, death, financial loss, etc. Indemnity insurance for doctors can help medical practitioners provide coverage against professional risks such as incorrect treatment, negligent misdiagnosis, etc.

Professional Indemnity Insurance Policy - Limit of Indemnity

The "Limit of Indemnity" within a professional indemnity Insurance policy denotes the maximum amount that the insurer will pay out for claims made against the insured professional during the policy period. This limit is crucial as it determines the level of financial protection provided by the policy. When selecting a professional indemnity insurance policy, it is essential for professionals to carefully consider their potential exposure to liability and choose a limit of indemnity that adequately covers their risks. Opting for a higher limit ensures greater protection against costly legal expenses, compensation payouts, and damages resulting from claims of professional negligence or errors. Additionally, professionals should review their coverage periodically to adjust the limit of indemnity according to changes in their practice, client base, and regulatory requirements, ensuring they maintain sufficient protection against potential liabilities.

How to choose the right professional indemnity cover?

Choosing the right professional indemnity insurance cover requires a thorough assessment of various factors to ensure adequate protection against potential liabilities. Firstly, professionals should evaluate the nature of their profession, including the scope of services provided and the associated risks of errors or negligence. Understanding the specific risks they face allows professionals to determine the appropriate coverage limits and policy features needed to mitigate these risks effectively. Additionally, considering the size of their client base, the value of contracts undertaken, and industry standards for insurance coverage helps professionals gauge the level of indemnity required. It is also essential to research and compare insurance providers, examining their reputation, financial stability, claims settlement process, and customer service. Seeking guidance from insurance brokers or legal advisers can further assist professionals in navigating the complexities of professional indemnity insurance and selecting a policy that aligns with their needs and budget. Regular reviews of coverage adequacy are also recommended to ensure ongoing protection against evolving risks and regulatory changes.

Eligibility criteria for professional indemnity insurance:

  • Only individual doctors can apply.
  • Applicant to have nil claims in the past.

Preferred category

Referred category

Declined category

With no claim history

Degrees - MBBS, BDS, BPT, BHMS, BAMS, MD, MDS, MPT, MS or higher

 

Lifestyle-related cosmetic surgeons

Proposer with past claims

As per the limit opted

How to apply for professional indemnity insurance

To avail of indemnity insurance for doctors up to Rs. 1 crore:

Step 1: Click on "Apply Online" above to open our online application form.

Step 2: Provide personal details and generate an OTP.

Step 3: Enter professional details as required.

Step 4: View the policy options and select the right policy.

Step 5: Make the payment for the insurance.

Step 6: Await policy issuance.

How to claim an indemnity insurance

  1. Immediate claim intimation
    Give the customer experience team an immediate written notice with all the available details through the liability insurance claims form.

  2. Document submission
    Submit documents relating to the claim viz., claim form, incidence report, documents/ details concerning the reported claim, etc., considering the nature of the reported claim.

    Our claims team will advise on the exact list of requirements based upon the nature of the claim intimated.

    Note
    : The above list of requirements is indicative, and the exact list can be confirmed after knowing the cause and incidence of loss.

  3. Claim settlement
    Once your claim is assessed and scrutinised, the settlement amount will be confirmed within 30 days of receipt of all the details/ documents as per policy terms and conditions.

Contact the customer experience team through:

  • Toll-free number: 1800-209-5858
  • Email: bagichelp@bajajallianz.co.in
  • Customer service website
  • Mailing address: Bajaj Allianz General Insurance Co. Ltd. - Bajaj Allianz House, Airport Road, Yerwada Pune- 411006

How to select the sum insured?

The premium for professional indemnity insurance policy in India directly depends on the sum insured. Selecting the suitable sum insured helps you check the premium amount. However, medical practitioners seeking professional indemnity insurance for doctors must not keep the sum insured too low. You should decide the sum insured based on your area of practice. For example, super-specialist doctors with surgical practices must opt for a higher amount as the risk involved is high, while a doctor with non-surgical practice can choose a lower sum insured.

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Frequently asked questions

What is the purpose of professional indemnity insurance?

As a medical practitioner, if you face allegations of malpractice, negligence, misdiagnosis, incorrect treatment, etc., a pi insurance policy will provide coverage to protect your finances. The purpose of professional indemnity insurance is to safeguard doctors from professional risks such as legal defence costs, claims for compensation, injury, damage borne by a third party, or breach of confidentiality, amongst others.

When patients’ expectations of compensation are significant, and the costs associated with litigation are high, professional indemnity insurance protects your finances as a doctor. By investing in this policy, you can ensure that your finances are protected and carry on your business smoothly without suffering from cash flow constraints.

Who needs a professional indemnity cover?

Any professional who guides, advises, or provides services to clients or companies should opt for professional indemnity insurance. This usually includes doctors such as surgeons, consultants, physicians, pathologists, and specialists. For medical professionals, establishments such as clinics, nursing homes, and polyclinics are also advised investing in a professional indemnity insurance policy.

How much does professional indemnity cost?

As a rough estimate, you can assume 0.2% to 1% of the sum insured to be the premium amount you will have to pay. With Bajaj Finance, you can get professional indemnity insurance of up to Rs. 1 crore with affordable premiums starting as low as Rs. 9,440.

However, to arrive at a figure, the insurer will consider factors such as the sum insured, the revenue of the medical practitioner or establishment, the professional record of the prospective policyholder, and the speciality of the medical professional. For instance, as compared to a general physician, specialists such as cardiologists or gynaecologists are more likely to encounter greater risks at a higher frequency. This impacts the premium charged.

The size of the establishment, equipment, skill levels of the support staff such as nurses, limits of the indemnity selected, and the ratio of the limitations are also considered to determine the premium.

Lastly, if you are renewing your policy, remember that the number of claims you have made in the past will have a bearing on the premium. The number of claims and the claim amounts help insurers determine what is to be expected and adjust the premium accordingly.

Is it a legal requirement to have professional indemnity insurance?

For doctors, professional indemnity insurance is not mandatory but is highly recommended. Given that it provides you with a safety net if you are caught in legal liability, its benefits far outweigh the associated cost.

What is the difference between public liability and professional indemnity insurance?

Public liability and professional indemnity insurance cover different kinds of risks. Public liability provides coverage if your business has caused damage to property or injury to third parties. In contrast, professional indemnity provides you with coverage when an incident happens with an individual due to your professional advice.

What does a professional indemnity policy cover?

Professional indemnity insurance covers against risks such as incorrect medicine dosage, surgery-related procedure, negligent misdiagnosis, and wrong course of treatment. However, this insurance policy does not cover medical treatment for weight loss, plastic surgery, genetic damages, criminal acts, wilful neglect, a medical practice done under the influence of narcotics, etc.

What are the benefits of an indemnity insurance?

Indemnity insurance offers coverage to doctors and medical practitioners against allegations and court cases that may arise due to any unfortunate event. These allegations and cases can be financially exhausting for the professional. This insurance plan provides financial coverage against such risks and compensates for the litigation cost, court fees, legal defence costs, and breach of confidentiality.

Is professional indemnity insurance mandatory in India?

It is not legally required for medical and other professionals to have indemnity insurance in India. However, it is nevertheless financially prudent to cover yourself against risks arising from mistakes and omissions.

Which is the best professional indemnity insurance in India?

Bajaj Finance offers one of the most comprehensive indemnity insurance policies in the market. Get coverage against defence costs, third-party damages, professional claims, and more.

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