Doctor's Indemnity Insurance Policy

Doctor's Indemnity Insurance

In the course of their work, doctors see dozens of patients each day. Physicians are in charge of deciding on the patient’s diagnosis, giving them advice on their medications, and even performing surgery. The outcome of these choices will greatly impact the patient’s health.

Every negligent error made while performing your duties, even a little slip in judgement, could harm the patient’s health. Physicians should, therefore constantly cover themselves with a Doctors’ Professional Indemnity Insurance in India to ensure their safety (alternatively known as Medical Malpractice Insurance).

What Is a Professional Indemnity Insurance for Doctors?

Indemnity Doctors insurance is a type of professional liability insurance for doctors that pays for defence expenses, court fees, and any other charges that may be awarded if you are found to have been negligent in delivering professional services and caused the client to lose money. It also helps defend you against allegations of negligence and will pay for the following costs and allegations:

Pay Your legal costs and any awarded damages or settlement money for claims resulting from:

  • Legal actions and charges of medical malpractice (Errors & Omissions in practice)
  • Allegations of confidentiality breaches
  • Documents from third parties are lost (cost of reinstatement of documents)

Professional Indemnity Insurance additionally offers coverage up to a predetermined maximum for any legal expenses incurred in defence of the claim. The policy solely offers protection from civil liability claims. Any claim brought about by illegal or criminal action is not protected by the policy.

Importance of Doctor’s Indemnity Insurance Policy

The general public is more aware of their rights and the obligations of doctors, and they are also aware that if they are wronged, they will get their day in court. The legal system also has a better understanding of the consumer. The accountability of doctors will undoubtedly increase as a result, preventing unwarranted harassment or punishment. Professional indemnity insurance handles the consumer’s claim for a financial obligation. The physician should be cautious that the sum assured is not insignificant. One is protected both at the time of the occurrence and when the claim is filed and must be paid, and it should be renewed regularly. Events from the past should be taken into account if one intends to switch insurers. In these situations, a run-off cover is helpful.

Inclusions & Exclusions Under Doctor’s Indemnity Insurance

Here is the list of inclusions and exclusions under the Doctor’s Indemnity insurance policy. Let’s first discuss inclusions.

  1. The type and extent of coverage differ by occupation. The insurance protects doctors, cardiologists, pathologists, and surgeons from being sued by patients who claim they were injured or killed due to their negligence.
  1. The insured may include additional consulting doctors, partners, or assistants who operate under them as part of the policy’s defence cost coverage.
  1. The policy offers protection from unintended mistakes or omissions.
  1. It safeguards against the expense of paying for one’s legal defence.


The following grounds for practice may exclude professional indemnity insurance from offering coverage against a claim.

  1. Medical care for AIDS-related diseases, weight loss, genetic damage, and plastic surgery.
  1. Penalties, misdemeanour offences, fines, and exemplary harm.
  1. Loss of reputation.
  1. Willful neglect, intentional non-compliance, and deliberate act.
  1. Medical care is provided while under the influence of alcohol or drugs.

What is The Amount Insured Under an Indian Doctor's Professional Indemnity Insurance Policy?

Any One Accident (AOA) Limit and Any One Year (AOY) Limit are the two limits that are specified in a doctor’s professional indemnity insurance policy.

  1. Any One Accident Limit: Also known as the AOA Limit, this term refers to the most the insurance provider will cover for any incident resulting in a claim.
  1. Any One-Year Limit: The term “Any Year Limit” or “AOY Limit” refers to the highest amount that the insurance provider will cover for any number of claims made during the policy period (usually 1 year).

The insured may select the AOA: AOY ratio (1:1, 1:2, 1:3, or 1:4). The AOA limit is typically 25% of the AOY maximum or 1:4 in most professional indemnity insurance.

Frequently Asked Questions

Here are some of the frequently asked questions that you must know.

The following criteria will be used to determine the premium: –

  • Risk-taking doctors
  • Selected limit of indemnity
  • Limitation on indemnity ratio
  • Medical training or expertise

The following add-on covers are included in a policy for doctors’ professional indemnity insurance:

  1. Paper and computer record losses
  2. Exposure of Personal Information in a Secret Manner
  3. Employee fraud and dishonesty, including employee theft
  4. Slander and libel Defamation can be either vocal or written.
  5. The Price of Legal Representation
  6. The recommendation of a medical professional, adds bodily harm to the concept of loss.

Any licenced medical professional (such as a radiologist, doctor, surgeon, dentist, anaesthetist, gynaecologist, or paediatrician) who provides patient care may think about purchasing this policy.


Both of these policies are completely different from one another; the public liability insurance insures against third-party bodily injury and property damage claims resulting from accidents and/or incidents that occur on the insured premises as a result of their company operations. However, Professional Indemnity is not location-specific and will cover claims brought about by errors, omissions, or carelessness in medical practitioners’ treatment of patients that result in physical harm or patient death. Claims relating to professional negligence are excluded from coverage under public liability policies.

Once the insured receives a complaint, written demand, or legal notice relating to professional negligence from a third party (patient, patient’s kin, or any other third party), they should immediately file a claim with their insurance provider.