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Indemnity Insurance for Doctors: All you Wanted to Know

As per the data presented in the Economic Times, the number of cases filed against medical negligence has increased by 400% in the past few years. While this data is staggering, it is often found that only a handful of such cases have a solid backing to them.

But the legal proceedings under such cases can stretch for months, years even, giving rise to substantial expenses. Further, there can be cases where doctors are liable to pay for compensation against accidental negligence. This is where indemnity insurance for doctors comes in. 

An indemnity insurance cover is a liability-management tool that allows doctors to be financially protected against professional risks at the workplace. From monetary compensation to cost of legal proceedings, these covers act as a financial failsafe for various such hindrances.

Following is an elaboration on what professional indemnity insurance is and why doctors should care about it.

Why do doctors require this insurance?

It is of common knowledge that there has been a sudden rise in medic-legal cases in India. Oftentimes, as is the norm with these cases, a doctor is the first person to be blamed. With more doctors being sued for medical negligence and malpractices, indemnity insurance for doctors is a necessity for doctors to protect themselves under these circumstances. 

A comprehensive insurance cover is a contingency plan that ensures that the insured professional is financially protected against instances like – 

  • Costs incurred in due course of a defence case proceeding.
  • Damages caused to a third party due to negligence, error or omission on the part of the insured individual.
  • Cases of employee dishonesty and fraud.
  • Cases of slander and libel against the insured individual.
  • Claims arising in the process of providing professional services.

With financial coverage against such instances and more, these insurance policies are a must-have for practising medical professionals.

Who are eligible to avail this cover?

Insurance for doctors that provide indemnity coverage has been made easily accessible by financial institutions like Bajaj Finserv. Individuals looking to avail them only have to satisfy a few simple eligibility criteria. These are as follows – 

  • They are available only for individual doctors.
  • Individuals with MBBS, BPT, BDS, BAMS, MDS, MD, BHMS, MS, MPT or higher degrees, with no prior claims, can avail this insurance cover.
  • Doctors with a prior claim history are eligible to avail the insurance policy as per the cover limit opted for. 

While professionals belonging to the above three categories can enjoy the benefits that this insurance policy offers, lifestyle-related cosmetic surgeons are not eligible to avail the policy.

Important to Read: What is Indemnity Insurance?

Factors to look for in a professional indemnity insurance policy?

There are several financial institutions in India that offer this insurance policy. But to choose the best cover, it is crucial to keep the following tips in mind – 

  • Check affordability

The coverage amount for these insurance policies varies from one insurance provider to another. With some financial institutions doctors can avail up to Rs. 1 Crore is coverage amount.

Further, this high coverage amount can be availed against a minimal premium payment of around Rs. 13,000. It is, therefore, crucial for individuals to compare between the sum assured and premium payments of each financial institution to choose the one best suited to their needs.

  • Check coverage area

Sometimes basic indemnity covers only offer financial protection against lawsuit expenses and damages to a third party. Other evolved policies also include other liabilities in their area covered. So before applying for a policy, it is important for individuals to check if the policy they avail can cater to the specific risks they face at their workplace.

  • Look through the claim process

An easy claim process is one of the pre-requisites for availing insurance for doctors. For instance, NBFCs like Bajaj Finserv offer an easy 3-step claim process that allows doctors to avail reimbursements without hassle.

Apart from this, one should also look for factors like convenience and flexibility while applying for this insurance policy. With these few tips in mind, an individual can avail a comprehensive plan to stave off various professional risks. 

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