Liability insurance offers protection against risk of getting sued for negligence, malpractice, injuries and damage to people and/or property. Liability insurance covers legal costs and payouts for which the insured party would be found liable.
This policy is meant for professionals to cover liability falling on them as a result of errors and omissions committed by them whilst rendering professional service.
We issue 'Professional Indemnity' policies to the following group of professionals:
The policy covers all sums which the insured professional becomes legally liable to pay as damages to third party in respect of any error and/or omission on his/her part committed whilst rendering professional service. Legal cost and expenses incurred in defense of the case, with the prior consent of the insurance company, are also payable, subject to the overall limit of indemnity selected.
Only civil liability claims are covered. Any liability arising out of any criminal act or act committed in violation of any law or ordinance is not covered.
The important rating factors are as follows:
In Professional Indemnity Policy, the sum insured is referred to as Limit of Indemnity. This limit is fixed per accident and per policy period which is called Any One Accident (AOA) limit and Any One Year (AOY) limit respectively. The ratio of AOA limit to AOY limit can be chosen from the following:
The AOA limit, which is the maximum amount payable for each accident, should be fixed taking into account the nature of activity of the insured and the maximum number of people who could be affected and maximum property damage that could occur, in the worst possible accident.
A heart patient was hospitalized in a reputed hospital of NCR, Patient was paralyzed after the Heart Surgery.
Family of the Patient filled case against the treating doctor that it was negligence of the doctor, since post operation methodology was not followed which eventually caused paralysis.
After analyzing the Pre Existing details of the patient it was successfully argued before the consumer forum that the cause of paralysis was not due to an amission of the doctor but was traceable to a pre exiting ailment. Since the defense cost was not covered in the policy, it was not paid.
Defense Cost should be included in the policy.
A 70 year old person was undergoing a Total Knee replacement in a reputed hospital and was also having cardiac history.
While performing the surgery, doctor did not go through his previous treatment papers. And the patient had some cardiac issues while performing the knee replacement which required immediate attention. Due to which the surgery of one knee was not successful.
The patient filed a case against the doctor for hid negligence, which was paid from the Insurance Policy.
Liability policy is always suggested for such profession.
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