As healthcare in India underwent a massive transition, health insurance policies emerged as major tools to manage financial requirements.
These products protect professionals from financial losses incurred due to medical negligence.
Recently, there have been numerous cases of negligence and misdiagnosis reported by patients.
However, most of the incidents show no negligence on the doctor’s part but inaccurate knowledge and wrong information among the victim’s family members.
- Of the 112 cases reported between 2017 and 2019, only 16 are actual incidents of negligence.
There is no upper limit to the quantum of compensation a victim’s family claims. They can charge anywhere from Rs.25,000 to up to Rs.5 lakh and even higher.
Additionally, court expenses, cost of booking a lawyer and other legal charges can lead to substantial expenses, drawing out one’s life savings. This is where a professional liability insurance policy emerges as advantageous.
Know two new insurance terms for doctors
India’s insurance market offers a range of options to choose from. Below are two new policies designed specifically for medical professionals.
- Malpractice insurance plan
This type of insurance policy provides healthcare professional coverage against medical negligence.
As a patient claims of misdiagnosis, inappropriate treatment, etc., this insurance plan protects doctors against the financial losses incurred when providing their service.
Precisely, this policy is applicable if the patient or his/her family files a lawsuit against the doctor and claims financial compensation. The amount, however, depends on the extent of damage caused due to neglect, omission or intentional errors during the treatment.
The malpractice insurance plan covers several professional risks, including:
- losses suffered from confidentiality breach
- expenses of defence
- monetary loss due to reputation damage, defamation, misrepresentation
- financial damages occurred due to third party claims, etc.
Two noteworthy features of this policy are reasonable premiums and high sum assured. Doctors can address all legal liabilities arising due to claims of medical malpractice efficiently with high-value coverage amount.
- Affordable premiums of Rs.9,440 make the professional indemnity cover accessible for doctors.
Look for the best policy with exclusive features and settle the claim amount faster.
- Liability insurance policy
Another customised product in the market is a professional liability insurance policy or E&O insurance plan.
It covers a medical practitioner against third-party liabilities which come up due to incorrect consultation, inappropriate medication or course of treatment, misdiagnosis and negligence.
An error and omission (E&O) insurance plan extend its coverage for the following liabilities too:
- Unintentional or intentional negligent treatment
- Diseases or illness misdiagnosed
- Insufficient advice on treatment
- Negligence, errors or omissions in surgical processes
- Inappropriate medical dosage suggested, etc.
Eligible professionals can avail high coverage amount of up to Rs.1 crore as per their budget and risks involved. The premium amount usually ranges around Rs.12,980. The probability of encountering various risks increases without a comprehensive insurance plan.
Access monetary assistance with unsecured loans
Healthcare has emerged as one of the largest sectors in India.
- By 2022, the Indian healthcare market is expected to reach Rs.8.6 trillion.
While it is not mandatory, buying a malpractice insurance plan can largely benefit when facing professional risks. Along with this, medical practitioners can address their additional monetary requirement with a tailored loan for doctors.
Unsecured loans from leading NBFCs like Bajaj Finserv come with unrestricted usage, and hence, can be utilised for various purposes. Eligible applicants can borrow fund up to Rs.37 lakh at nominal interest rates.
The application process is also simpler with easy online forms. Borrowers can submit their duly-filled forms online along with relevant documents.
Today, people are quite aware of their rights and empathy of the Indian judicial system towards consumers if they are wronged. However, this often results in unnecessary harassment of doctors, financial loss and reputation damage.
- Around 20% of the cases happen due to anxiety and limited understanding of patients regarding technical details.
Of all the professionals, doctors are more likely to face financial liability risk while rendering their services.
The amount of compensation, along with additional legal charges is, therefore, overpriced. The best professional liability insurance policy protects the insured against the financial implications of a lawsuit.