Check Out The Brief Insights Of Professional Liability Insurance Cover

Professional liability insurance plan is a crucial insurance product for professionals, especially in the medical field. Such policies cover liabilities due to the damages caused by rendering healthcare services.

It protects doctors against the claims raised by victimised patients or their family members and settles the compensation amount effortlessly.

• Indemnity cover safeguards from reputation-damaging claims by unsatisfied patients.

Also known as E&O insurance policy, a professional indemnity insurance plan in India can benefit you in several ways. Below are brief insights about this overlooked yet vital insurance product.

Necessity Of An Indemnity Insurance Plan

As a healthcare professional, you may face allegations of incorrect consultation, misdiagnosis, inappropriate treatment, the discrepancy in a surgical procedure, etc.

In such incidents, the victim’s family usually claims compensation for the damages occurred. An insurance policy ensures optimum financial protection to the doctor against such professional liability.

Patients often end up claiming from Rs.50,000 to up to Rs.5 lakh and more depending on the extent of loss or damage.

In case of a court case, the accused medical professional needs to pay for court charges, lawyer appointment charges, expenses on documentation, etc. These associated expenses can draw out huge amounts, stressing your finances.

This is when doctors should care about an indemnity insurance plan. It covers a host of professional liabilities of doctors and ensures quick settlement as well.

• Of the medical negligence cases reported in India, only 15% are authentic.   

• Most negligence incidents are either due to lack of proper knowledge among the victim’s family or incorrect perception. 

Two Vital Features Of Indemnity Insurance Plan

Indemnity insurance policies for doctors come with some beneficial features, such as:

High Coverage Amount 

Considering the significant expenses incurred on facing medical negligence, trusted NBFCs offer high coverage amount. You can avail up to Rs.1 crore against a nominal premium of Rs.12,980. If you need a smaller coverage amount, you can take up to Rs.50 lakh and pay a reduced premium amount of Rs.9,440. 

Coverage Against A Host Of Professional Risks 

While a professional liability insurance policy protects against financial losses from practice incidents, it also covers many other damages.

Some of those include loss of documents, losses incurred due to third-party, breach of confidentiality, charges of filing a case of defamation, libel or slander if proved not guilty, etc.

Who Are Eligible To Take A Professional Liability Cover? 

Doctors holding the degrees of BHMS, MBBS, BDS, BPT, BAMS, MD, MDS, MS, and above are eligible to avail a liability insurance policy.

However, they should have no history of previous claims. Applicants with records of past claims are categorised depending on the limit availed.

It is important for professionals to read the terms and conditions of the insurance aggregators before availing a professional indemnity insurance plan in India.

What Is The Procedure To Claim Insurance Benefits?

Claim redressal time of a professional indemnity insurance plan in India has been reduced to a minimum by prominent non-banking financial corporations.

It generally takes around 30 days after providing all the necessary documents, as per terms and conditions. However, there are 3 simple steps to follow before that.

Step 1: Information Regarding The Incident 

Whenever any such incident occurs, you must immediately intimate the financial service providers in writing. Also, mention all the relevant details accurately for faster claim settlement. 

Step 2: Documentation Process

The next step involves the submission of necessary documents. These include records of the reported claim, report of the incident, and others.  

Step 3: Claim Settlement 

You need to pay the applicable deductible after the documentation process. Once payment is made, be assured of receiving the settlement amount soon.

Bajaj Finserv is one of the leading NBFCs which offers customised professional indemnity insurance plan in India. The NBFC is also known for providing the most reasonable Loans for Doctors with attractive features.

Loans can help you deal with additional monetary requirements effectively. For example – some insurance plans do not cover claims pertaining to violation of law or criminal act. As such, doctors need extra funding throughout.

So, apply through online application forms and look for their exclusive pre-approved offers.
Pre-approved offers make the process of loan availing both simplified and less time-consuming. Besides professional loans, these schemes are valid on a range of financial products such as personal loans, business loans, home loans and more. 

• In India, 2,638 Incidents Of Medical Negligence Were Reported In 2019. 

As incidents of medical negligence are increasing gradually, considering a professional liability insurance plan have become more evident. Know about the various inclusions and exclusions, and buy a policy that best matches your requirements.