There is a lot of awareness today around health and life insurance, however, few people realise that multiple insurance policies are also available specifically for professionals. One important option for medical professionals and institutions is liability insurance. Medical practitioners often work in high-risk environments, where even the most skilled face unforeseen complications and challenges.

With advancements in medicine, illnesses and diseases are also becoming more complex, posing additional challenges for doctors. New drugs, innovations, and advanced treatments are emerging but come with their own set of risks. Consequently, medical practitioners face increasing pressure in their practice. Rising patient volumes for various treatments add to this, heightening the risk of errors—even among the most skilled doctors. This shifting medical landscape highlights the importance of protecting healthcare practitioners through specialized insurance to ensure they are covered during complex situations.

Liability insurance provides a safety net for medical practitioners, shielding them from multiple legal liabilities that may arise from negligence, malpractice, or obstacles during medical interventions. If a patient suffers due to any form of negligence and seeks compensation, liability insurance can assist in covering the medical practitioner. This coverage protects practitioners from complaints by patients or their families, allowing them to focus on treatment without fear of potential legal repercussions. In today’s environment, liability insurance has become an essential safety net for the medical community.

Despite rigorous training and best practices, the possibility of patient dissatisfaction or harm cannot be eliminated in the complex medical field. It is increasingly common for patients or their families to file lawsuits, seeking compensation from hospitals or practitioners. This type of insurance typically covers the legal expenses needed to defend the practitioner or hospital from malpractice claims, including costs for legal representation, investigations, and any awarded compensation.

The premiums for these insurance policies vary based on the professional’s specialization, such as cardiology, nephrology, gynecology, or surgery, with general physicians and radiologists typically paying lower premiums. Independent practitioners and those with clinical establishments can also opt for liability insurance. Geography plays a role as well, with location affecting the level of risk and, thus, the premium amount. By purchasing liability insurance, a doctor effectively transfers the risk of legal implications to the insurance company.

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However, liability insurance comes with certain exclusions, especially for intentional misconduct. Exclusions cover actions beyond legitimate medical practice, such as sexual misconduct, misuse of drugs, intentional administration of lethal medication doses, unauthorized drug experimentation, or reckless drug administration. In such cases, the insurance company will not offer coverage, and the medical professional will be liable for any legal and financial consequences.

Medical inflation in India is rising by 10-12% annually, making health insurance increasingly crucial. However, liability insurance has only reached 50-60% of its potential market in the country. This indicates a substantial need and opportunity for liability insurance, which can offer greater protection to doctors and medical professionals. Instances of families filing false lawsuits against medical institutions or professionals for financial gain underscore the importance of liability insurance in safeguarding healthcare providers against unfounded claims. It is time for the medical community to consider this type of insurance to protect their profession and practice.

Views expressed by: Manoj Rane, Senior Vice President, Placement and Underwriting (Liability Lines), Alliance Insurance Brokers

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