Protecting Your Practice: Why Doctors Need Professional Indemnity Insurance?

Apart from the day to day risks that are the hallmark of the healthcare sector, professionals in the sector are also at risk of legal claims.

Claims can be of negligence, malpractice, or errors in diagnosis and treatment. The Professional Indemnity Insurance (PII), is an appropriate risk management strategy for these professionals. This article explores the policy in some detail and also provides examples of cases where the PII policy protected the policy holder.

Professional indemnity insurance (PII) is designed to protect professionals from legal claims arising from their professional services. For doctors, this means coverage against claims of negligence, malpractice, or errors in diagnosis and treatment. PII covers the costs of legal defence, settlements, and any compensation awarded to the claimant, ensuring that your personal and professional finances are not jeopardised.

 

Why is it recommended for Doctors and other Healthcare professionals?

Protection Against Human Error: A misdiagnosis or a surgical error can lead to significant patient harm, resulting in claims of negligence.

Client Confidence: In certain cases where the probability of survival is low, the PII policy can give confidence to the doctor as well as the patient's family in terms of financial protection. This assurance builds trust between doctors and their patients, reinforcing client confidence.

Legal Defence Costs: PII covers the costs associated with defending yourself in court, which can be substantial.

Peace of Mind: The PII allows the doctor to focus on patient care without the constant worry of potential lawsuits.

Compliance and Credibility: In some cases, having PII is required by law or registered professional bodies. By having PII, doctors demonstrate their commitment to maintaining the highest professional and ethical standards.

 

Examples: The Impact of PII in managing Medical-Legal Cases

 Administrative Error

• Case: Reputed Hospital (2017)
• Summary: The case involved a 7-year-old girl who died from dengue, and the parents accused the hospital of medical negligence and overcharging. While the focus was on the hospital's billing practices, administrative errors like inaccurate and incomplete patient medical records in handling patient care and communication could also be a factor, especially in a large facility.
• Impact: Having Professional Indemnity Insurance (PII) is crucial in such cases, as it provides financial protection against the costs of defending against claims related to administrative failures and potential compensation, ensuring that healthcare providers are not financially devastated by such lawsuits

 

Surgical Complication

• Case: Dr. Gupta Case (1994)
• Summary: Dr. Gupta was charged with negligence after a patient died following cosmetic surgery due to complications from anaesthesia. The Supreme Court later ruled it as medical negligence rather than criminal liability.
• Impact: This case is a clear example of surgical complications and highlights the legal risks surgeons face. Despite following medical protocols, unexpected complications can arise, leading to severe legal consequences. PII is essential for surgeons as it covers legal defence costs and potential settlements in cases of surgical complications.

 

 Misdiagnosis

• Case: Dr. Joshi Case (1969)
• Summary: This case involved a medical operation where the patient died, and the court had to determine whether Dr. Joshi was negligent in his diagnosis and treatment. The court ruled in his favour, establishing that a doctor cannot be held liable if he acts with due care and skill.
• Impact: This case serves as an example of how a misdiagnosis could lead to legal disputes, though Dr. Joshi was ultimately relieved. Misdiagnosis, even when done with care and skill, can lead to severe legal challenges. PII is vital in such scenarios, as it provides coverage for legal defence and any damages awarded.

 

Disclaimer: The cases referenced are real-life examples sourced from publicly available information on the internet. While we have made every effort to ensure accuracy, we cannot guarantee the complete authenticity or details of these cases.

 

How to pick the Right Policy?

When selecting a professional indemnity insurance policy, consider the following:

Coverage Limits: Ensure that the policy covers the maximum potential claims you might face according to your professional activities.

Exclusions: Be aware of what is not covered by the policy to avoid surprises.

Legal Support: Choose a policy that offers comprehensive legal support, including access to specialised legal counsel.

Reputation of the Insurer: Opt for insurers with a strong track record in handling medical claims.

In the medical profession, the stakes are incredibly high. Doctors often have to make quick, calculated decisions, sometimes in life-or-death situations. Even with the best intentions and utmost care, things can go wrong. This is where Professional Indemnity Insurance (PII) becomes a game-changer, providing a vital safety net for medical professionals.

 

Note by Pragya Patni

Future Corp Capital

26/08/2024

 

Disclaimer: This information is for general guidance only and should not be construed as professional advice. For a thorough understanding of Professional Indemnity Insurance and how it applies to your specific situation, please consult with a financial advisor, or legal professional.

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