The salient features of professional indemnity insurance are as follows:

1. Indemnity: The professional indemnity insurance is meant for professionals to cover liability falling on them as a result of errors and omissions committed by them whilst rendering professional service. The indemnity applies only to the claim arising out of bodily injury and/or death of any patient caused by or alleged to have been caused by error, omission or negligence in professional service rendered or which should have been rendered by the insured or the assistants or the team of people employed by the insured.
2. Policy Period: The period commencing from the effective date and hour as mentioned in the policy and terminating at the midnight on the expiry date as mentioned in the policy.
3. Period of Insurance: This is the period commencing from the retroactive date and terminating on the expiry date as mentioned in the policy.
4. Commission of Act: The act (medical negligence by doctor or hospital) has to be committed during the period of insurance commencing from retroactive date
5. Retroactive Date: Retroactive date is the date when the risk is just incepted under “claims made” policy and thereafter renewed without any break in the period of insurance.
6. Limit of Indemnity: Irrespective of the number of persons or entities named in the insurance policy or added by endorsement, the total liability of the insurance company for damages inclusive of defence costs shall not exceed the limit of indemnity as mentioned in the policy.
7. Defence Cost: The insurance company pays all costs, fees and expenses incurred with their prior consent in the investigation, defence or settlement of any claim made against the doctor or hospital and the costs of representation at any inquest, inquiry or other proceedings in respect of matters which have a direct nexus to any claim made or which might be made against the insured. Such costs, fees and expenses are called defence cost.
8. Claims series clauses: Where series of losses and / or bodily injuries and / or deaths are attributable directly or indirectly to the same cause or error or commission relating to discharge of professional services all such losses and / or bodily injuries and / or deaths claims shall be added together and all such losses and / or bodily injuries and / or deaths shall be treated as one claim and such claim shall be deemed to have been made when the first claim was made in writing.
9. Registration

1. Doctor: The doctor should be duly registered with his/her respective medical council.
2. Hospital / Medical Establishment: The Hospital / medical establishment should be registered with competent authority as per local law and rules. In territories where there is no registration facility, then following minimum norms have to be complied with for considering the indemnity insurance policy:

1. 1. At least 10 in-patient facility
   2. Fully equipped operation theatre of its own
   3. Fully qualified nursing staff in its employment round the clock, unless indicated to the contrary and additional premium paid
   4. Fully qualified doctor / doctors should be in charge round the clock.
   5. The insured shall comply with registration formalities as and when official regulations or laws are enforced.

10.  Short Period Policy: Short period policies are not permitted. However, in case of cancellation of the policy by the insured short period scale rates as provided for will be applicable.

11.  Compromise / Settlement: In normal course, all claims for compensation have to be legally established in court of law. However, insurers can arrive at compromise or settlement if prima facie liability exists under the policy.

12. Jurisdiction: Jurisdiction applicable will be of Indian courts only.

13. Exclusions

1. Liability assumed under the agreement
2. Cosmetic surgery (cosmesis)
3. Liability arising out of :

1. Deliberate, wilful or intentional noncompliance of statutory provisions
2. Loss of goodwill, libel, slander, false arrest, defamation, etc.
3. Fines, penalties, punitive or exemplary damages
4. Genetic injuries caused by x-ray treatment or diagnosis with radioactive substances
5. Professional services rendered by the insured prior to retroactive date
6. War and warlike perils
7. Nuclear fuel / ionizing radiation / radioactive contamination.

14. Premium rate of insurance: Separate rates of insurance are applicable to doctors, medical establishments, medical professionals, etc. Group discounts are available with the insurance companies for a group of doctors. Additional premium is applicable in case doctors want to cover qualified staff working with them. Whenever multiple specialisations are involved, then the rate of insurance shall be of the specialisation, which attracts higher rate of insurance.

15. List of eligible medical establishments

1. Laboratories and diagnostic centres
2. Hospitals
3. Mental homes
4. Nursing / convalescent homes
5. Homes for physically disabled
6. Clinics
7. Dispensing pharmacies
8. Veterinary hospitals and / or clinics and the like.