Woman accuses Indian hospital of cheating family for INR 1.2 Crores AND how professional indemnity insurance is important:

Recently, an Indian woman’s posted on social media accusing Indian hospital, namely, Yashoda Hospital in Secunderabad and BL Kapoor Hospital, New Delhi about cheating her family of INR 1.2 Crores.

She has claimed that her mother was admitted in the ICU for more than 100days and during this period her family has paid on an average INR 1 Lakhs per day with total bill amounting more than INR 1.2 Crores. She further claimed that her mother contracted multiple infections and ultimately died.

Bills shared on social median as proof –

With rising consumer awareness and courts becoming more consumer friendly, such instances are fast growing which is understood from various other instances where patients or their relatives have taken hospitals and doctors in the court of law for malpractice or negligence. Also, in many instances courts has ordered hospitals and/or Doctors to pay aggrieved party.  Such claims can cost heavily to Hospitals and/or Doctors both in terms of professional carrier and financially.

As result, awareness of Professional Indemnity Insurance among Hospitals and Doctors has increased and now a day’s almost all Hospitals and Doctors have policy in place to protect themselves from unforeseen and unexpected claims from patients and/or their family.

However, the cover for each professional varies, such as, Doctors, Lawyers, Consultants etc. Under Professional Indemnity Policy for Hospitals/Doctors, registered medical practitioners are protected against legal liability claims made by any of their patients for bodily injuries and/or death. Policy also pays for defence costs and other necessary expenses incurred in defending the claim. Also, additional covers such as defamation cover, mitigation cost cover, outstanding fees cover etc can also be provided under policy. Hospitals can insure partners, consulting doctors and employed assistants along with unqualified staff like peons, sweepers working in the Hospitals. But, professional indemnity policy do not cover liabilities arising out of criminal acts, any act committed in violation of any law, fines, penalties, punitive and exemplary damages etc.

Thus, while purchasing Professional Indemnity insurance policy, Hospitals need to be very careful as coverage and exclusion of policy vary from Insurer to Insurer and can take help of experts such as brokers to negotiate best policy for Hospitals. 

** This is a summary document based on R&D done by Beacon Insurance Brokers Pvt Ltd. Broker accept no liability for any loss arising directly or indirectly for any error or omission in this document.  **