According to a recent study conducted by the National Law School of India, legal proceedings alleging medical negligence have witnessed a steep rise of 400% registered in the Supreme Court, but only about 10 to 15% cased doctors were found guilty of it. However, 85% of medical practitioners had to bear the expenses to keep their stance and fight the lawsuit.
Dealing with such allegations and court cases can be financially exhausting. Professional indemnity insurance extends financial coverage against professional risks, compensating for the litigation cost, court fees, legal defence cost, breach of confidentiality, etc.
7 things you need to know about professional indemnity insurance
Medical practitioners should consider the following pointers before availing of a professional indemnity insurance policy:
1. Know the eligibility criteria
Individuals must fulfil the following conditions before availing of a doctor professional indemnity insurance plan-
- Applicants must ensure that they have zero claims in past
- Medical practitioners holding an MBBS, BHMS, BDS, MPT, BAMS, MS and other higher degrees can apply for this plan.
It is imperative to note that lifestyle-related cosmetic surgeons are not eligible for a professional indemnity insurance plan.
2. Coverage amount
Doctors must factor in all the expenses that come with sorting legal hassles before deciding the coverage amount. Hence, applicants need to be well versed with the features and coverage. Sum insured depends on the applicant’s area of practice, evaluated defence and compensation cost.
3. Know the premium
Any clinician or doctor must access the budget before availing of an indemnity insurance plan. It is feasible for borrowers to opt for the plan only if they know about the premium amounts. However, the premium amount varies depending on multiple factors, including sum assured, area of specialisation, the revenue of medical practitioner or establishment, etc. In this context, applicants must know how to choose the best professional indemnity insurance policy for the doctor.
4. Inspect claim handling
Applicants must study how insurance providers act in a situation and handle such a crisis. Opt for plan extending services from a well-skilled claim team is always recommended.
5. Scope of coverage
Under an indemnity insurance plan, doctors will get financial compensation for the following professional risks and associated cases-
- The plan covers libel and slander.
- The policy compensates for the loss of documents.
- Individuals get exhaustive coverage for legal and defence expenses.
6. Policy exclusions
Besides knowing the policy inclusions, borrowers need to know about the following exclusions under medical liability insurance:
- The plan does not cover any criminal act, exemplary and punitive loss
- If treatment surrounds weight loss, genetic damage, plastic surgery, etc.
- The harm caused due to insolvency or bankruptcy of the insured
- Treatments performed under the effect of intoxication
- Medicos will not receive any coverage for loss caused due to wilful or deliberate negligence
7. Know about the claim procedure
Applicants can claim an indemnity insurance plan by following the mentioned steps:
Step 1: Provide an immediate claim intimation letter by filling out the medical liability insurance claims form.
Step 2: Submit the necessary documents.
Step 3: Applicants will receive the settlement amount within the stipulated time after the claim is evaluated and verified.
Hence, applicants should also know the risks doctors have if they don’t have a professional indemnity insurance plan.
By knowing what professional indemnity insurance is and why doctors should care, individuals will be able to take an apprised decision and secure themselves from unforeseen circumstances.
For further convenience, applicants can opt for a professional loan and get access to a substantial loan amount by undergoing a minimal documentation procedure. Moreover, they can apply online and enjoy lower monthly installments with the Flexi loan facility.
This line of credit is further customised as a loan for doctors to cater to the varied financial requirements of medical practitioners like expanding business, purchasing equipment, etc.
Moreover, individuals will be able to reap the benefits of the exclusive pre-approved offers extended by reputed financial institutions like Bajaj Finserv. These offers are available on financial products like personal loans, business loans etc. Willing individuals can check their pre-approved offers by submitting their names and contact details.
To summarise, a professional indemnity insurance plan provides sturdy financial backup, helping medical professionals fight and sail through the lawsuits lodged by patients or their families.