Professionals Indemnity

The policy is meant for professionals to cover liability falling on them as a result of errors and omissions committed by them whilst rendering professional services.

The policy covers all sums which the insured professional becomes legally liable to pay as damages to third parties in respect of any error and/or omission on his/her part committed whilst rendering professional services.

Legal cost and expenses incurred in defence 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 policy offers a benefit of Retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier periods after first inception of the policy, also become payable.

Group policies can also be issued covering members of one profession.

WHO CAN TAKE THE POLICY?

The policy is meant for professionals. In the following groups:

  • Doctors and medical practitioners – which covers registered medical practitioners like physicians, surgeons, cardiologists, pathologists etc.
  • Medical establishments – which covers legal liability falling on the medical establishment such as hospitals and nursing homes, as a result of error or omission committed by any named professional or qualified assistants engaged by the medical establishment.
  • Engineers, architects and interior decorators.
  • Lawyers, advocates, solicitors and counsels and court balifs.
  • Chartered accountants, financial accountants, management consultants.

Exclusions:

  1. Industrial Diseases: This policy shall not provide cover in respect of legal liability for disease or any impediment attributable to a gradually operating cause which does not arise from a sudden and identifiable accident.
  2. Gradual Pollution: This policy excludes liability arising form the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any other water course or body of water. However this exclusion does not apply if such discharge, dispersal, release or escape is sudden or accidental.

Note: The policy will not pay for claims arising out of contractual liability, intentional non-compliance with any statutory provision, loss of goodwill, slander, fines, penalties, libel, false arrest, defamation, mental injury etc.

How to claim

The term “liability” means responsibility and “legal liability” means responsibilities that can be enforced by law. Legal Liability may be classified into Criminal Liability and Civil Liability. Only Civil Liability claims are payable.

Civil Liability claims will arise if there is prima facie evidence of negligence by the insured resulting in injury or death to any third party or resulting in damage to property belonging to a person other than the insured.

Negligence will be proved only when the following conditions are satisfied:

  • Existence of duty of care
  • Breach of this duty
  • Injury suffered by a person or property damaged as a result of that breach:
  1. In case of any event likely to give rise to a liability claim as described above, the insurance company should be informed immediately by phone, email, fax or in writing.
  2. In case any legal notice or summons is received, it should be sent to the insurance company who will have the option of arranging the defense in the case.
  3. The event giving rise to the claim should have occurred during the period of insurance or retroactive period and the claim first made in writing against the insured during the policy period.

The maximum amount payable including defense costs will be the “Any One Accident Limit” selected. The “Any One Year Limit” will get reduced by the amount of claim or indemnity paid for any one accident. Any number of such claims made during the policy period will be covered subject to the total indemnity not exceeding the “Any One Year Limit”.

DO NOT make any admission, offer or promise or payment without written consent of Insurers.

Exclusions:

  1. Industrial Diseases
  2. This policy shall not provide cover in respect of legal liability for disease or any impediment attributable to a gradually operating cause which does not arise from a sudden and identifiable accident.

  3. Gradual Pollution
  4. This policy excludes liability arising form the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants into or upon land, the atmosphere or any other water course or body of water. However, this exclusion does not apply if such discharge, dispersal, release or escape is sudden or accidental.

  5. The policy will not pay for claims arising out of contractual liability, intentional non-compliance with any statutory provision, loss of goodwill, slander, fines, penalties, libel, false arrest, defamation, mental injury etc.

Note: Policy details given are indicative, not exhaustive. Please contact your nearest FICO office for further details.