Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. Professional indemnity is an insurance plan to financially safeguard medical practitioners against legal costs and claims for compensation by the patients in case of a legal row. It is specifically designed for the professionals to cover them against the liabilities arising out of an error or omissions committed while rendering their services to their respective clients
Due to the rise in litigations and frivolous charges, doctors are driven to take indemnity insurance, every year, some of them to the tune of lakhs of rupees. Thus, in today's litigious world, claims can pose a significant threat to the financial security for a medical practitioner.Indemnity insurance protects against claims arising from possible negligence or failure to perform that result in a client’s financial loss or legal entanglement. A client who suffers a loss can file a civil claim, and in response, the professional’s indemnity insurance will pay litigation costs as well as any damages awarded by the court.
The policy covers - Legal liability arising in the event of a third party submitting a complaint (claim) against you for the losses arising out of actual or alleged negligent act, error or omission in the provision of the Professional Services rendered
This policy does not cover liability arising out of or in connection with: -