Professional Indemnity For Doctors And Medical Practitioners In Kenya

A professional indemnity insurance policy provides protection to professional people against their legal liability to compensate third parties who may sustains injury or loss or damage to their property through the negligence of the professional person or that of their employees or due to breach of contractual duty.

Professional liability arises when a professional fails to perform a duty for the client.

This is a policy meant for any professional rendering services other than the doctors. The need for this insurance is becoming even more important as society becomes more claim conscious due to technological advances, consumer protection awareness, access to information and increase in the size of court awards and this can pose a significant threat to the financial security for a medical practitioner in case a claim arises. In October 2013, the ministry of health launched the Kenya National Patients’ Rights Chapter which has empowered patients to complain about injustices committed against them by medical practitioners.

In Kenya, the policy take-up is low due to failure to recognize their importance and have made them unpopular but in some professions such as lawyers, it is now mandatory for them to pick such covers.it is not a mandatory for a medical practitioner to have but it is always advised to stay one step ahead by purchasing professional indemnity insurance by protecting yourself and the organization from unforeseen situations that may rise financial burdens or even higher losses. In other parts of the world like the UK, one of the most common requirements before setting up any SME businesses is the indemnity cover as explained in this business blog . Almost every insurance company in Kenya is providing cover for all the professionals who work for clients by either offering products, providing services or giving any advice.

Who can be covered?

• Surgeons
• Gynecologists
• Dentists
• Dermatologists
• Radiologists
• Pathologists
• Pediatricians
• General practitioners
• Cardiologists
• Psychiatrists
• Qualified clinical officers
• Qualified nurses

What is Covered?

The policy caters for financial impact to medical practitioners resulting from being sued by a client. You do not have to be wrong to be sued, the policy will provide for the costs of defending any action brought against the insured in their professional capacity.

A standard professional indemnity insurance rates in Kenya pays for the costs of defending any action brought against the insured in their professional capacity as well as for awards that may have arisen out of court judgments, or defense costs, loss of documents fees and expenses.

The policy does not cover for liability arising out of or in connection with, criminal acts, acts committed under influence of intoxicants, weight reduction, plastic surgery, non-compliance with statutory provisions, and radioactivity among other special exclusion depending with the insurer.

Underwriting Factors

While opting for a professional indemnity policy, it is good to declare all the material facts relating to the risk to the insurer. With this information, the underwriter is able to review the structure of the business to ensure that it is technically strong to guarantee delivery of services that have been contracted. Most of the insurance companies in Kenya offer professional indemnity insurance, for the medical industry some of the biggest insurers are AAR Insurance, Madison Insurance, BRITAM insurance among others. Globally, insurers like Chubb Insurance and AIG are some of the biggest underwriters on this class and other related covers like Directors and Officers Liability.

The factors are,

• Professional qualifications of the insured
• Their experience in the profession
• Total number of staff
• Claims history
• Indemnity limit selected
• Years the company has been in operation
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Rates and quotes

Rates on the policy are competitive depending on the risks covered and the insurer. The insured will choose a limit of cover in line with the nature of contracts that they normally undertake. The insured should also be able to check on additional riders that come with the policy for example free continuity cover on retirement or completely cease practice or free last expense cover up to certain limit depending with the insurer.

Claim Process

In an event of claim,

• Make clear records of the event while things are still fresh
• Inform your insurer
• Do not admit liability
• Do not enter into claims correspondence without the insurer permission
• Do not settle or offer settlement
• Do not incur any legal expense

It is advisable to write up contracts detailing the exact scope of work that has been contacted to ensure that a professional reduces the risk of being claimed against for services rendered.

Benefits of the professional indemnity policy

1. As a buyer of PI Insurance, you can concentrate on work more and don’t need to worry about the risks involved.
2. In case any client files claim against you, you just have to inform your insurance provider and rest will be take care of by them.
3. In the event of legal actions, the insurer employ a team of lawyers specialized in handling professional liability cases.
4. Purchase of this cover will balance the cash flow of your business and furthermore, you shall not meet any financial cost of paying for the lawyer.
5. Enjoy extend of cover after retirement.

Are you looking for a Quote ?

If you are looking for a quote for professional indemnity insurance for any type of profession in Kenya, get in touch with our sales experts who will guide you on the cover and what are the best providers in the market? Having the right cover in place can make the different in the event of a liability suit