Benefits of professional indemnity insurance are as follows:

1. It is beneficial not only to the doctors or hospital but also to the patients and theirdependents because the insurance company takes care of the compensation.
2. Retroactive Benefit: The insured will be covered for anyprofessional act or omission occurring during the period of insurance.
3. It would take care of the amount of damages against third party.
4. It will also compensate on the principle of “no fault liability” to provide somerelief in the case of death or permanent disablement of the patient.
5. The company will also pay the defence costs, which have a direct relevance to the claim.