The insurance sector in India has evolved rapidly with various financial service providers bringing customised products. One of the most popular products is an indemnity or liability insurance policy.
Errors and omissions or E&O insurance is an innovative type of professional liability insurance plan that covers professionals, workers and companies against claims of negligence in the services rendered.
- Between June 2017 and January 2019, the medical negligence board registered 112 incidents of malpractice.
Considering the increased rate of medical negligence cases being reported, an errors and omissions insurance policy is a necessity for healthcare professionals today.
It provides financial coverage against liabilities arising from misdiagnosis of the disease or illness, medical negligence, inaccurate treatment, inappropriate consultation, omissions or errors in surgical procedures and many other risks.
- Every year, close to 50 lakh patients in India expires because of medical negligence.
How can healthcare professionals benefit from E&O insurance plans?
A government panel has been set up for the investigation of these insurance policies –
- Of the registered cases, a mere 15% were proved to be genuine incidents of malpractice.
The remaining cases occurred due to lack of proper knowledge or wrong information among patients. Doctors facing these allegations end up paying significant compensations claimed by the victim’s family. If court cases are filed, they also need to pay several charges for lawyer appointments, court, and other legal expenses.
The best way to stay protected from professional liabilities is through a professional indemnity policy for doctors.
Non-Banking Financial Companies offer advanced insurance plans which provide comprehensive coverage against various third-party claims.
The insured can also enjoy additional extensions like libel and slander, defamation, breach of confidentiality, loss of documents and other losses from the third-party.
How are liability insurance policies beneficial?
Doctors or other healthcare professionals can enjoy significant benefits of the errors and omissions insurance plan.
Below are a few of its features and advantages –
- Premiums are reasonable
Aiming to make insurance plans more accessible, reputed NBFCs offer professional liability insurance plans against affordable premiums. Some also offer flexible choices for the convenience of customers. Often, financial service providers consider several factors like the speciality of the doctor, previous claims made, etc. to determine premium amounts for a customer.
- Coverage value is higher
Most E&O insurance plans offer up to Rs.1 crore for extensive coverage against professional liabilities and risks.
Financial companies provide the flexibility to choose any amount depending on the doctor’s size of the practice, budget, risks identified, etc. The amount of premium also varies according to the sum insured.
For instance – You may have to pay around Rs.9,400 as a premium to avail coverage of up to Rs.50 lakh. For higher sum assured of up to Rs.1 crore, make a premium payment of Rs.13,000.
- Quicker redressal time
Nowadays, insurance policy claim redressal happens easily in minimum time. It takes around 30 days for settlement once the claiming process is completed in 3 steps –
- Inform the customer care executive immediately. Some insurance aggregators require the incident’s details and other relevant information in writing.
- Provide the necessary documents such as details of the reported claim, incident’s report and more.
- Pay the applicable deductible and finally settle the claim amount effortlessly.
Ensure to read the terms and conditions along with everything important about indemnity insurance policy for doctors.
- Simple eligibility criteria
An E&O insurance plan is available for professionals such as engineers, chartered accountants, management consultants, lawyers, architects, and others.
Also, healthcare professionals like doctors who hold MBBS, BDS, BPT, BHMS, MD, MDS, BAMS, MS, MPT and other degrees can easily take an insurance plan.
For professionals who have a history of previous claims, the categorisation depends on the limit availed.
Today, many non-banking financial corporations offer exclusive indemnity policy for doctors. These are customised for a range of risks and liabilities which may arise from malpractice or negligence.
NBFCs also provide business loan for doctors of up to Rs.37 lakh for medical practitioners to help them with monetary support. This easy access to credit helps them manage other financial requirements and run the practice smoothly.
One of the prominent institutions, Bajaj Finserv, brings feature-rich Professional Liability Insurance policies as well as tailored Loan for Doctors. Look for their pre-approved offers for a more simplified and time-saving procedure.
Thus, an E&O insurance policy ensures healthcare professionals stay protected against legal actions effectively. It safeguards the insured from paying hefty amounts of compensation and also protects their professional image.