Is Buying Hospital Indemnity Insurance Worth It?

Medical Indemnity Policy

January 24th, 2020   |   Updated on April 21st, 2021

These days, incidents of medical negligence have become extremely common. In the medical profession, the amount of total medical compensation that a doctor might need to pay can be huge.

The compensation awarded is often based on the mental trauma or stress caused to the patients or loss of physical faculties allegedly caused by inadequate or faulty treatment.

In such cases, the patient’s monetary expectation is huge. Due to the risk of such claims, most doctors prefer to stay protected by taking insurance against the possible legal costs. This is where having a medical indemnity policy plays an essential role.

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Why should you consider a hospital indemnity policy? If you own or operate a hospital in India all of your team members might not have already bought a medical indemnity policy.

You stand to be legally sued if anything wrong happens to any of your patients. There are clear laws related to medical negligence in India.

Medical errors can occur not only at the hands of doctors but also by other staff members of the hospital or clinic.

Hence investing in a hospital indemnity policy is your best bet to stay protected. The policy not only meets any contractual requirements that you may have but also pays for the litigation costs, court fees and further settlements.

Here Is Why Buying Hospital Indemnity Policy Is Worth It:

1. Protection In Case Of Misdiagnosis


Sometimes, it is hard to analyze the symptoms of a disease that a patient suffers from. Such situations may lead to a misdiagnosis that results in either wrong treatment or no treatment at all.

If it leads to the prescription of wrong medication, this can worsen the patient’s health.

One of the common consequences of misdiagnosis of a disease is a malpractice lawsuit against you or your hospital. You’ll have to pay a hefty amount as compensation for the same. However, you can avoid these losses if you have a hospital indemnity policy.

2. Shield Against Anesthesia Errors

Anesthesia errors that occur when performing critical surgeries are quite common. You might have even seen these in some films where the patients couldn’t express the pain to the doctors.

Administering the same amount of anesthesia is not appropriate for every patient.

Giving inadequate anesthesia to patients during the operation can cause a medical malpractice case.

It can happen because of a mistake by the hospital staff member or a doctor. A suitable indemnity policy can cover the compensation awarded to the patient in such cases.

3. Legal Defence In Case Of Surgical Errors

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While performing surgeries or providing critical treatment, there is no scope of mistake, no matter whether major or minor. The last thing that your patient or their family members want to hear is about an error that occurred during the operation.

Irrespective of whether such a mistake results in temporary health issues or death of a patient, there is a high risk of facing legal proceedings. A hospital indemnity policy can keep you safe from legal liabilities arising out of surgical errors.

Hospitals getting sued for neglect of medical ethics is no longer a rarity. In today’s uncertain world, such claims or allegations can pose a significant danger to your hospital’s financial security.

These pile up more quickly than you can imagine, as patients are most likely to file a lawsuit seeking compensation.

Buying a medical indemnity policy is one of your primary responsibilities for your hospital, no matter how small or big it is.

If you are confused about which insurer is best for you, then choose a reputable insurance broker, such as SecureNow, who will help you make the best decision.

You must also keep in mind that the policy has to be renewed on time, so as to continue enjoying its coverage benefits.