(Authored by- Sajja Praveen Chowdary, Director , Policybazaar For Business)

What exactly is professional indemnity insurance for doctors?

Professional Indemnity for doctors is a policy specifically designed for medical professionals to protect them from financial and legal liabilities arising from errors,
omissions, and assumed wrongdoing that occur in the course of their professional responsibilities. These mistakes might be unintended, for example, A patient claims to have been given the wrong medication, or mistreated within the premises. It shields medical professionals from the cost of legal defence, settlements that are out of court, and compensation to patients in case of claimed damage or mistreatment resulting from the doctor's professional services.

How is it different from general liability or malpractice insurance?

The general liability Insurance enfolds the risks that are not directly correlated to the medical treatment involving various aspects like property damage, injury within the premises in nutshell it covers the extensive and non -medical risks such as – Due to wet floor, if a patient is swept on the floor within the clinic. Whereas, the Malpractice insurance in India, known as professional indemnity for doctors, which covers liability for "bodily injury and/or death of any patient caused by or alleged to have been caused by error, omission or negligence in professional service rendered

Why is professional indemnity insurance becoming more crucial in today’s healthcare landscape?

Several prospects that are increasing the demand for professional indemnity for doctors involve the following :
1) Enhanced Patient Perception- With growing awareness, patients today have a better understanding of their legal rights and are more willing to speak up about the challenges they face in hospitals. Such cases are now being reported more frequently in both urban
and rural areas.
2) Increased Medical Complexity- With the rise of advanced medical procedures, the chances of miscommunication have also increased, which can lead to serious legal issues.
3) Rise in Legal Action – More patients in India are now approaching consumer courts to seek justice for medical negligence, leading to a rise in lawsuits against doctors and healthcare institutions. The Supreme Court of India has consistently held that medical services fall under the purview of the Consumer Protection Act (CPA), treating patients as consumers who can sue for "deficiency in service". This legal framework provides a more accessible and less formal route for patients to seek redress compared to traditional civil courts, leading to a rise in litigation against doctors and hospitals. A professional indemnity policy is designed to cover the costs of defending these cases in consumer courts, as well as any compensation awarded.
4) Impact of Social Media – Even a single incident can quickly spread across platforms, damaging the reputation of a hospital or clinic.
5) High cost of Litigation and Compennsation: Medical negligence claims can lead to heavy compensation and legal costs, risking a
doctor's personal finances. Professional indemnity insurance offers essential protection against these financial liabilities.

What types of claims or legal actions does this insurance typically cover?

Professional indemnity for doctors insurance covers the intensive prospects of scenarios such as :
1) Claims for Professional Errors or Omissions- If the doctor mistakenly gives the patient wrong/heavy dosages or unintentionally fails to detect the suffering at a critical moment.
2) Medical Malpractice- During the treatment, due to an inevitable reason, the treatment goes wrong or the patient's health gets critical, such as leaving the tool inside the patient.
3) Misleading- If the doctor misguides the patient, leading to some major suffering.Mistakes By Staff – Some policies also cover the acts that are performed by junior students, nurses under the doctor’s management.
4) Legal Compensation: The policy indemnifies the insured doctor against their legal liability to pay compensation to a patient who has successfully made a claim. This liability can be established either through a court order or a settlement that is agreed upon with the insurer's prior written consent.
5) Defence Costs: The insurance covers the costs associated with managing a claim, provided the insurer gives prior consent. These "Defence Costs" include:
a) Fees and expenses for investigating the claim.
b) Costs incurred in the legal defense or settlement of a claim.
c) Expenses for legal representation at any inquest, inquiry, or other proceeding
that has a direct relevance to a potential or actual claim under the policy.

What are the risks of not having this insurance for a practising doctor in India?

There are some major disadvantages of not having insurance for a practising doctor in India , here are the following :
1) Character Assassination- Through various media channels, even unverified, news can harm a doctor’s reputation among patients and peers. What takes years to build can be damaged in just minutes.

2) Substantial Losses – All the legal costs would be covered personally if the doctor had no policy , as the policy provides coverage for the settlements that take place outside the courts, compensation, etc.
3) Disruption In practice -With the legal process, a lot of time is spent in court either with lawyers or in performing formalities. These factors involve time consumption, which can cause your medical practice to sometimes be on hold or maybe a suspension in some cases.
4) Mental Well-Being- Whether you are at fault or not, the impact on the mental health and emotions due to defamation, being accused can affect the mental and well-being of a doctor, resulting in the inability to continue the medical profession.