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What Insurance is Good for Doctors in India?

Posted on 11 JUN, 2024
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The medical profession in India is a noble calling that requires skill, dedication, and a strong commitment to the well-being of patients. Despite their dedication, doctors often face the risk of legal action in the form of medical malpractice lawsuits. This is where professional liability insurance (PI insurance), also known as medical indemnity insurance, plays a crucial role. It covers legal expenses and liabilities related to allegations of medical negligence like misdiagnosis, surgical errors, or incorrect medication administration.

Professional Liability Insurance

Why is PI Insurance Important for Doctors in India?

While trust forms the foundation of the doctor-patient relationship, unexpected situations can result in legal disputes. Here are some reasons why doctors in India should have PI insurance coverage

Rising Scrutiny and Legal Actions: With increasing awareness and legal knowledge among the populace, there has been a rise in medical negligence claims in India. Even if a lawsuit is proven baseless in the end, defending your reputation can be both time-consuming and costly

Financial Safeguard: Legal battles can take a toll on finances. Medical indemnity insurance assists doctors in handling the expenses linked to defending themselves against malpractice allegations, including attorney fees, court expenses, and potential settlements.

Peace of Mind: Understanding that you have the right insurance coverage gives you peace of mind and lets you focus on providing top-notch care to your patients without worrying about legal implications.

What is Medical Indemnity Insurance?

While there are insurance options that may be relevant to a doctor's life, such as health or property insurance, professional liability insurance is essential for practising medicine in India. Let’s delve into the details of what medical indemnity insurance covers and excludes.

Coverage under Professional Liability Insurance typically includes legal liabilities that may arise from medical practice. Here's a breakdown of what it entails

Defence Costs: This insurance covers fees involved in defending yourself against medical malpractice claims regardless of the outcome.

Third-Party Liability: It provides compensation for injury or death of a patient resulting from your mistakes, omissions, or negligence.

Breach of Confidentiality: Some policies cover legal expenses related to breaches of patient confidentiality.

Slander/Libel: Certain policies may offer coverage for costs incurred to defend allegations of defamation, subject to specific conditions.

Loss of Documents: Some policies might cover the costs of replacing damaged or lost records.

What Professional Indemnity Insurance Does Not Cover

  • It's crucial to be aware of the limitations of indemnity (PI) insurance. Here are some common exclusions to keep in mind.

  • PI insurance typically does not cover damages awarded for intentional wrongdoing or extreme negligence.

  • Any penalties for breaching laws or ethical standards are usually not included in the coverage.

  • PI insurance does not protect against losses such as income loss due to legal claims.

  • Coverage is usually excluded if the policyholder faces criminal charges or legal troubles stemming from breaking laws.

  • Medical services provided while under the influence of drugs or alcohol are typically not covered.

  • Cosmetic procedures, such as plastic surgery and weight loss treatment, are not covered.

  • Losses arising from an act of terrorism, war, or invasion are not covered.

  • Losses from bankruptcy/insolvency and contractual liability or fraudulent claims are not covered.

  • Claims based on losses or liabilities from actual/unfair competition are not covered.

  • Loss of goodwill is exempt from coverage.

Factors to Consider When Selecting Medical Indemnity Insurance

Choosing a medical indemnity insurance policy requires consideration of factors such as —

Your Specialisation: The risks associated with different specialities differ; for instance, an orthopaedic surgeon might require a higher sum insured compared to a general practitioner.

Claim History: A history of malpractice claims could lead to higher insurance premiums. Reputation of the Insurance Provider: Opt for an insurance company known for fair claim settlements and exceptional customer service.

Policy Exclusions: Take a look at the policy wording to grasp which situations or events are not included in the insurance coverage.

Cost Comparison: While cost plays a role, it should not be the determining factor. Give priority to a policy that provides comprehensive coverage at an affordable price.

Sum Insured: This represents the amount that the insurance company will contribute towards a claim. Select a sum insured that can cover legal expenses and settlements specific to your area of practice.

Deductible: This refers to the amount you, as a doctor, must pay before the insurance company steps in to cover claim expenses. Opting for a higher deductible can reduce your premium.

Conclusion

Medical indemnity insurance is crucial for all doctors practising in India. It offers protection against medical malpractice lawsuits, enabling doctors to focus on delivering quality care with peace of mind. By understanding what is included and excluded in the coverage and considering factors when selecting a policy, doctors can ensure they have the right insurance coverage to navigate India’s ever-evolving healthcare landscape.

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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, 4010 , IRDAN115P0010V01200607)