CRUCIAL ROLE OF INDEMNITY INSURANCE FOR DOCTORS

-Team Policy Era

Shielding your practice

In this unpredictable and huge ocean of healthcare, a doctor controls the helm, balancing the art of healing others with continuous turbulence. Yet, some very skilled captains come in contact with storms that are legal complexities, which can be a reason to compromise with the professional standards and their career. A lifeboat can save the captain's life from the sinking ship, similarly, indemnity insurance is the lifeboat for the ship of doctors in the storm of legal challenges. The potential litigation is a reality and the process for litigation can be very complex, which disrupts even the most seasoned practitioners. Indemnity Insurance is also known as “Professional Indemnity Insurance”, the purpose of this insurance is to provide a safeguard to medical professionals, offering protection against the financial and reputational repercussions for breach of duty, negligence, and malpractice claims.

The purpose of this blog is to delve into the significance of professional indemnity insurance for doctors, its benefits, legal obligations, and the positivity in the sense of peace of mind it provides to a doctor in the highly increasingly litigious environment. Concerning doctors, this means safeguarding their practice from lawsuits that may allege medical malpractice or professional misconduct.

Understanding Indemnity Insurance

Indemnity insurance or professional indemnity insurance is a technical form of coverage that offers protection against claims arising from errors, breach of duty, and negligence during the course of work.

The Need for Professional Indemnity

Doctors give all their lives to healing others but even the most skilled practitioners are not immune to error. A wrong medicine, a slight error in the diagnosis, or even a miscommunication can lead to legal claims. Professional indemnity offers a helping hand by bearing the cost of legal costs, and the payable compensation if such a scenario arises.

This insurance ensures that doctors can focus on patient wellness and care instead of being in constant fear of financial instability due to legal claims.

Why do Doctors need Indemnity insurance?

There are many factors due to which a doctor needs professional indemnity insurance, such as:

• Legal Protection: Legally fighting a case and defending oneself against the allegation that the opposite party has put up can be a financial cripple without an insurance policy for the doctor.
• Reputation of Medical Professional: A legal case is enough spark to put the reputation of the doctor on fire. This indemnity insurance gives a helping hand ensuring the resources to the doctor to robust defense against the allegation that the other party has put up.
• Patient Expectation: With increasing awareness, the expectation of the patient is increasing, and with the increasing expectation the demand for accountability is also increasing. Actual negligence or perceived negligence can lead to legal claims.
• Professional Standards: The insurance puts up a sense of accountability for a doctor which sets up professional standards.
• Psychological Factor: A doctor with insurance always has a backup in case of any legal inconvenience which provides peace of mind. A doctor with no backup can perform the duty to its finest.

Rising Number of Cases 

Suits on malpractice have risen imminently on a global stage, and India is no exception. Some factors are involved in the increased suits on malpractice, such as patient awareness, media coverage, leading demands of patients for standards of care, and social media.

Statistical Insights

• According to the Indian Medical Association (IMA) report nearly 75% of doctors face some form of legal action that hamper their careers.
• Presently more than 20,000 cases of medical negligence are currently pending in consumer courts across India.

Some Cases against Doctors (Case Laws)

• Dr. Suresh Gupta vs Govt. of NCT of Delhi (2004):
  • A patient died during nasal deformity surgery. The patient later claimed that it was medical negligence.
  • The Apex quashed the criminal charges against the doctor, stating that medical negligence was not ‘gross’ enough to warrant criminal liability. 
• Indian Medical Association vs V.P. Shantha (1995):
  • A landmark judgment established that medical services are subject to the Consumer Protection Act of 1986.
  • Indian Medical Association vs V.P. Shantha (1995):
  • A landmark judgment which established that medical services are subject to the Consumer Protection Act of 1986

These are a few cases has critical importance of doctors safeguarding their practice with professional indemnity insurance.

Rise in Online Cases with Case Law

With the rise of technology and online consultation has opened gates to unique legal challenges for doctors. Doctors offering online medical consultations are now introduced to cases of virtual medical negligence.

Case Law

• Deepa Sanjeev Pawaskar vs State of Maharashtra (2018 SCC):
• Issue: medical negligence in telephonic consultation.
• The Bombay High Court held that a telephonic consultation without examining the patient, due to which the patient died, could constitute gross negligence.

With telephonic medication gaining popularity, indemnity insurance policies must evolve to cover online consultations comprehensively.

How to Get Professional Indemnity Insurance

Obtaining indemnity insurance is as easy as signing a paper, but the easiness makes it dangerous if not consulted with the best advisors, Policy Era provides you with the best experts for policy taking. Policy Era works on the 3C principle.

• Consultation: In the Policy Era you get expert advice on which policy exactly fits you.
• Comparison: Policy Era compares all the insurance that is best for you among all the insurance partners.
•  Coverage: Policy Era has personalized protection to fulfill the unique needs of our customers.

Professional Indemnity for Doctors

Professional Indemnity insurance is constituted for healthcare practitioners to address specific risks.

• Comprehensive Coverage: Covers legal fees, legal compensation, and any negotiations out of the court.
• Wide Applicability: Applicable to individual doctors, group practices, and hospitals.
• Retroactive Coverage: Claims arising from post-incidents are protected, once the claim is made the policy is active.

Professional Indemnity Covers

Indemnity Insurance policy might be slightly different for every insurance partner but it generally covers the following:

• Legal Costs: this policy covers expenses incurred in defending against claims.
• Compensation: pays damages to the claimants.
• Out-of-court negotiation: covers the expenses for the negotiations out of the court.

Exclusions

• Criminal acts or willful negligence.
• Claims arising from treatments performed under the influence of drugs or alcohol.
• Liability arising from services make available beyond the scope of a doctor’s qualifications. 

FAQs: Indemnity Insurance for Doctors

• What is the primary purpose of professional indemnity insurance for doctors?

The basic purpose of professional indemnity insurance for doctors is to protect against financial repercussions due to legal liabilities.

• Why has professional indemnity insurance increased in recent times?

The need for professional indemnity insurance has increased due to many factors such as patient awareness, higher demand for care, media coverage, social media advancement, and an increase in malpractice suits. These factors have increased the legal risks.

• What are the exclusions in professional indemnity insurance?

The exclusions in professional indemnity insurance are:

• Criminal acts or willful negligence.
• Claims arising from treatments performed under the influence of drugs or alcohol.
• Liability arising from services make available beyond the scope of a doctor’s qualifications.