Insurance Policies for Doctors

Life insurance plans are widely recommended to protect loved ones. There’s no substitute for term life plans which are pure risk protection plans. Health insurance plans are a must-have for emergency hospitalization. Sadly, no one recommends insurance plans for doctors. Doctors need insurance just like any ordinary citizen.

Why Doctors Need Insurance Plans?

Doctors have to worry not just about patient’s health, but also external risks like commercial units. Patients demand accountability from doctors. There are cases where doctors are assaulted and many of them have to fight legal cases.

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Insurance Policies for Doctors

Doctors Have to Fight Legal Cases:

Litigation is a major risk doctor’s face. It’s difficult to control and predict medical cases. Doctors have tough cases to handle and patient’s family members are unpredictable. Drained of emotion, they blame the doctor for any negative outcome. Patients fight and demand compensation and courts are known to favor patients. Doctors are forced to hire lawyers to defend themselves, which can be time consuming and expensive.

This is where doctors need professional indemnity insurance. This plan protects doctors from claims vis-a-vis errors, negligence, and omissions. The insurer pays for the investigation, expenses related to compensation if these are awarded by the court. The insurer hires a panel of lawyers to defend the doctor. Premiums depend on the doctor’s specialty and the amount of risk the insurer must bear.

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Doctors Suffer Physical Abuse

There are a number of cases where doctors have been verbally and physically assaulted by the patient’s family. Doctors are being blamed for negligence and severely beaten. Some of them have hired bouncers for protection. After some mob attacks on doctors, they definitely need cover from accidental injuries and disabilities. An individual personal accident plan is offered at low premiums. If you (doctor) has expensive equipment in the clinic, take burglary insurance.

There are also problems with doctor’s clinics from fire hazards. In some accident cases, patients were not evacuated quickly and some of them lost their lives. This is why doctors need a fire insurance plan to protect assets from fire damage. A public liability plan protects people from injuries and property premises from damages. You could get fire insurance with sum assured of Rs 25 Lakhs for just Rs 2,500 to Rs 3,000.  Public liability insurance of Rs 50 Lakhs costs around Rs 6,000 to Rs 7,000.

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What is Professional Indemnity Insurance?

If it’s alleged that you have provided wrong advice or services to a client (its patients in case of doctors), the professional indemnity insurance covers legal costs and expenses.

Professional indemnity must be availed by engineers, architects, doctors, chartered accountants, and lawyers to protect their businesses from legal claims.

Insurers offer group cover for professional indemnity insurance plans. These plans offer discounts on insurance premiums based on the number of group members added under the professional indemnity plan. You are covered for all legal liabilities which arise out of omission, error or negligence, which cause damage to third-party property or injury to him.

The professional indemnity insurance covers only claims made during the tenure of the plan. So, you must renew the plans on time. Claims made before/after the policy tenure will not be honored.

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Importance of Professional Indemnity Insurance:

• Negligence in business not only costs you clients, but also a lot of money. This is where the professional indemnity insurance plan helps compensate clients.
• Negligence in business costs a personal reputation. However, if the client is well compensated he won’t make this a legal issue.

Professional Indemnity Insurance Exclusions:

• If you are rendering services under the influence of drugs or alcohol the professional indemnity insurance plan won’t honor the claim.
• Criminal activity, breaking of the law and fraud is not honored.
• Financial loss arising from loss of goodwill.
• War and nuclear perils.
• Trademark, patent, copyright infringement.

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