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A Comprehensive Guide Understanding Professional Indemnity (PI) Insurance for Doctor

Posted on 23 Jan, 2024
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“Medical Negligence” is a term that is gaining popularity in our society. The growing population and sedentary lifestyle have tremendously strained our country’s healthcare infrastructure and medical practitioners. Many examples have recently come to light in which people who needed hospitalisation died or had to bear the brunt of negligence due to an absence of proper medical equipment, overworked doctors, and insufficient supervision.

Let us look at the data to back up our claim. You will be surprised to learn that every year, 5.2 million individuals suffer as a result of medical blunders, with a staggering 3 million losing their lives.

Medical negligence leads to severe consequences for doctors. It can lead to emotional and financial losses, as well as legal liabilities and reputational damage.

While mental anguish and reputation loss are difficult to overcome, there is a way to deal with legal consequences with the assistance of Professional Indemnity (PI) Insurance for doctors.

PI insurance is a liability insurance that covers claims arising from professional services or advice.

PI Insurance for CA

Inclusions of Professional Indemnity Insurance for Doctors

This insurance covers instances when you cause injury, illness, or death to your patient due to negligence, error, or omission in your treatment or diagnosis.

Even if you are not at fault, you may have to face legal proceedings and investigations from your patients, their families, or the authorities. PI insurance covers the legal expenses incurred in defending yourself.

As a doctor, you have access to sensitive and personal information about your patients. It is your duty to maintain confidentiality. If you accidentally disclose this information to a third party without their consent, you may face a claim for breach of privacy. This insurance comes in handy to deal with such issues.

Understanding Coverage Under Indemnity Professional Insurance for Doctors

The sum insured under this plan is based on the policy tenure or an incident. The coverage limit is classified into the Any One Accident limit (AOA) and Any One-Year limit (AOY).

You need to choose the ratio of AOA and AOY while purchasing the policy. Let’s understand how this works with the help of an example.

Suppose the policy you are buying has an indemnity limit of Rs 1 crore with a ratio of 1:2. That means the policy will cover up to Rs 1 crore for any one accident and up to Rs crore for any one year.

Exclusions of Professional Indemnity Insurance for Doctors

As a doctor, you must know the circumstances where PI insurance for doctors won’t come to your rescue. These situations include the following:

You cannot raise a claim if you perform any cosmetic or aesthetic procedure that is not medically necessary or indicated, such as liposuction, Botox, or breast augmentation.

Suppose your medical negligence results in genetic or hereditary damage to the patient or a third party, such as congenital disabilities, mutations, or diseases. In that case, your personal indemnity insurance stands void.

There won’t be any coverage benefits if you transmit or contract AIDS or any related condition, such as HIV, ARC, or HTLV-III.

If you treat a patient while under the influence of alcohol and he/she sustains an injury, this policy will not cover you.

Any fraudulent activities, such as concealing a patient’s information necessary for treatment or criminal acts of intentionally providing wrong treatment to the patient, are subject to policy exclusions.

Conclusion:

Professional indemnity insurance for doctors is a crucial protection for medical practitioners who face the risk of legal claims and lawsuits due to errors or negligence in their field of work. It provides financial compensation, legal assistance, and peace of mind for doctors who strive to deliver quality healthcare to their patients.

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Liability Insurance, 4021 , IRDAN115CP0024V01201920)