Features and benefits of malpractice insurance
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High sum assured
Obtain financial protection of up to Rs. 1 crore for legal liabilities arising out of malpractice claims.
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Economical premiums
Avail malpractice coverage to stay financially protected against specified claims with premiums starting at just Rs. 9,440.
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Comprehensive coverage
Get coverage for a wide range of professional risks such as losses due to defamation and breach of confidentiality.
Malpractice Insurance
A malpractice insurance policy is a financial coverage plan that aims to protect medical practitioners against financial losses while rendering professional services. Being a type of professional indemnity insurance plan provides coverage against a patient’s negligence claim.
The applicability of a malpractice liability insurance plan extends in case of lawsuits filed by patients against a medical professional, claiming financial losses suffered due to neglect, intentional errors, or omissions during treatment. An experienced malpractice insurance plan thus protects a doctor against such contingent financial losses.
Types of Malpractice Insurance
Malpractice insurance is essential for healthcare professionals, as it provides protection against legal claims arising from medical errors or negligence. There are several ways to obtain malpractice insurance, and each option has its own benefits. Here are the main options available:
- Private insurers: You can purchase individual or group policies through private insurance companies.
- Medical risk retention groups (RRGs): These are groups of medical professionals who come together to provide malpractice insurance for their members.
- Employer coverage: Some healthcare professionals, particularly those working in hospitals or other medical facilities, may obtain malpractice insurance through their employer.
- Federal health center workers: Employees working in federal health centers do not need to purchase malpractice insurance, as federal law provides immunity from civil lawsuits.
- State and local agencies: In certain situations, malpractice insurance can be provided through state and local agencies, depending on specific requirements.
Regarding the types of policies available, a claims-made policy only covers claims if the policy was active both when the treatment occurred and when the lawsuit was filed. On the other hand, an occurrence policy covers any claims for treatment that occurred while the policy was in effect, even if the policy has since expired. Additionally, malpractice policies typically cover a range of costs, including legal fees (such as lawyer fees and court costs), settlement and arbitration costs, as well as medical damages and punitive damages.
Professional risks covered under a malpractice insurance plan
Coverage under malpractice insurance for healthcare professionals extends to the following practice risks:
- 1 Cost of defence involved in litigation
- 2 Financial damages from third-party claims
- 3 Losses sustained due to breach of confidentiality
- 4 Financial losses incurred due to defamation, misrepresentation, reputation damage, etc
- 5 Claims resulting in a lawsuit against professional services rendered
Healthcare professionals can claim damages incurred during the insurance policy period and within the coverage territory.
Enjoy a fast-tracked claims redressal by following a few hassle-free steps and submitting the necessary documents.
Areas malpractice insurance does not cover
Malpractice insurance coverage for medical professionals does not cover medical treatment for weight loss, plastic surgery, genetic damages, and AIDS-related conditions. Additionally, the insurance does not cover criminal acts, penalties, fines, punitive or exemplary damages, intentional non-compliance, wilful neglect, or deliberate acts. Furthermore, loss of goodwill is not covered, nor is medical practice while under the influence of drugs or alcohol. Losses arising from acts of war, terrorism, or invasion, as well as losses caused by fraudulent claims or contractual liability, are not covered. Claims resulting from actual or alleged unfair competition are excluded, as are losses from insolvency or bankruptcy.
*Conditions apply
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Frequently Asked Questions
Yes, medical malpractice insurance is necessary for doctors in India to protect themselves against legal claims arising from malpractice or negligence. In some states, it is mandatory for doctors to have malpractice insurance before starting their practice. Malpractice insurance helps cover legal defence costs, settlements, and damages to patients, ensuring that doctors can operate without worrying about the financial impact of a malpractice claim.
The malpractice insurance starts at a policy premium costing Rs. 9,440 for a coverage of Rs. 50 lakh. For a higher coverage of Rs. 1 crore, the premium is Rs. 12,980.
Malpractice insurance is also commonly referred to as professional liability insurance, errors and omissions (E&O) insurance, or medical liability insurance. These terms are used interchangeably, depending on the specific profession or context. While "malpractice insurance" is most often associated with healthcare providers, "professional liability insurance" covers a broader range of professionals. "Errors and omissions" is another term, particularly used in industries like real estate and finance, where professionals need protection against claims of negligence or mistakes in their services.
