Professional Indemnity
Professionals like architects, engineers, doctors, lawyers, chartered accountants, and medical practitioners, and services such as medical establishments need to protect their business interests against legal claims for error, omissions, professional neglect for both the principles and their employees. Professional Indemnity Insurance Policy comprehensively covers them for all legally established claims arising from the covered perils. This also arises due to unfortunate human error which cannot be eliminated and all professionals are exposed to the risk of claims from clients who have suffered a loss due to neglect, error or omission. In today's litigious world, claims can pose a significant threat to financial security for a medical practitioner.
Coverage
Professional Indemnity Insurance Policy provides the following covers: :
• Legal liability due to bodily injury or death caused by breach of professional duty by -
>> The insured
>> The predecessors in business of the said firm, if covered
>> Any person at any time employed by the Insured or by such predecessors in business in the conduct, by or on behalf of the said firm or such predecessors of any business conducted in their professional capacity
• Payment of defense costs, fees and expenses anywhere in India in accordance with Indian Law
EXCLUSIONS
• Any criminal act or any act committed in violation of any law or ordinance
• Services rendered while under the influence of intoxicants or narcotics • Any third party public liability
• Any condition caused by or associated with AIDS
• Rising out of all personal injuries such as libel, slander, false arrest, wrongful eviction, wrongful detention, defamation, etc. and resultant mental injury, anguish or shock
• Infringement of plans, copy-right, patent, trade name, trade mark, registered design
• Assumed by the insured by agreement and which would not have attached in the absence of such agreement.
• Deliberate, willful or intentional noncompliance of any statutory provision.
• Non-compliance with technical standards commonly observed in professional practice, laid down by law, or regulated by official bodies
• Loss of pure financial nature such as loss of goodwill or loss of market
• Any dishonest, fraudulent criminal or malicious act or omission
• Fines, penalties, punitive or exemplary damages.
• Professional services rendered by the Insured prior to the Retroactive Date in the Schedule.
• Deliberate conscious or intentional disregard of the insureds technical or administrative management of the need to take all reasonable steps to prevent claims.
• Injury to any person under the contract of employment or apprenticeship with the insured their contractor(s) and/or Sub-Contractor(s) when such injury arises out of the execution of such contract.
KEY BENEFITS
>> Specially designed for requirements of different professionals and professional services
>> Exhaustive coverage against different risks
>> Provides for legal expenses and cost incurred with the prior consent of the insured • Hassle free documentation
>> Mid-term increase or decrease in the sum insured allowed
IMPORTANCE AND WORKS
Having an insurance policy that covers a professional for their work is important because it allows them to offer services without having to build in the potential additional cost of any mistakes they might face in the future.
You are likely to need professional indemnity insurance if: You provide advice or professional services to your clients (including consulting or contracting) You provide designs to your clients (such as working as an architect or design engineer)
In simple terms, an indemnity policy is an insurance policy to cover a defect relating to a property. Such policies are commonly used to cover against the cost implications of a third party making a claim against the defects. ... This will be clearly marked on the policy.
The industries which uses hazardous items as raw material or finished goods have to compulsory take such Policy.
Yes, the industries have to take such policy under Environment (Protection) Act, 1986.
50% of the premium has to be contributed by the Insurance company is such kind of Policies.
-
Professional Indemnity FAQ:
-
Claim Process:
-
Any such instance triggers has to be reported to the authorities along with the details of tragedy.
-
Simultaneously the claim has to be reported to the insurance company.
-
The investigator appointed by the insurance company will investigate the matter and the Insurer has to deal with the authorities through his lawyer.
-
The Claim process goes through the court and the award has to be borne by the insurance company and the Insurer to some extent.
-