What is Indemnity Insurance? An Introduction

Indemnity insurance refers to the type of health insurance where the insured individual is compensated for the actual medical expenses. The word ‘indemnity’ means ‘to pay or reimburse someone against loss or damage. Usually, indemnity insurance is designed for business owners or professionals such as doctors, lawyers, financial advisors, etc.

Indemnity health insurance can be bought as an individual and family floater policy after paying premiums as per the health plan terms and conditions.

Key Takeaways

• Indemnity health insurance is a type of health insurance that compensates or reimburses for the loss or damage sustained by the insurance holder.
• Ideal for business owners and professionals like doctors, lawyers, etc.
• Buying professional indemnity insurance for doctors is a shield against claims arising out of injuries and/or death of any patient caused by or alleged to have been caused by error, omission, or negligence in professional services.
• Indemnity health insurance covers you for ICU charges, and treatment expenses at affordable premiums and offers additional deductible benefits.

How Does Indemnity Insurance Work?

Let us understand indemnity health insurance with an example:

Mr Prayag had to undergo a planned treatment as advised by his doctor, for which the total hospital bill is INR 5 Lakhs. To his relief, Mr Prayag purchased an indemnity insurance of Rs.10 Lakhs which covered his total hospital expense of INR 5 lakhs. The balance sum insured of INR 5 Lakhs can be used later during the policy tenure.

However, it is important to note that indemnity insurance does not cover expenses for pre and post-hospitalization. Do not worry, despite not covering pre and post-hospitalization expenses, your indemnity health insurance will offer multiple other features.

Professional Indemnity Insurance for Doctors

Indemnity health insurance plans are designed to provide insurance benefits to professionals like financial advisors, lawyers, accountants, and more. An indemnity health insurance is an ideal solution as doctors deal with several patients daily. They are responsible for making decisions related to patients’ diagnoses, prescribing medicines, advising treatments, and more.

There is no room for error for a doctor as even a minute mistake will cost a patient their life. Oftentimes, we hear patients suing doctors for minor mistakes, this is where a Doctor’s Professional Indemnity Insurance acts as a shield for the professional.

A doctor indemnity insurance policy protects doctors against claims arising out of injuries and/or death of any patient caused by or alleged to have been caused by error, omission, or negligence in professional services.

To understand more about doctor’s indemnity insurance connect with our experts at PolicyX.com.

Benefits Of Indemnity Health Insurance

1. Flexibility to Choose Your Hospital

   The insurer has a tie-up with a list of network hospitals and medical practitioners. Cashless treatments are available as per your needs and requirements so you can focus on your recovery and treatment.

2. Avail Extensive Coverage

   If you have purchased indemnity health insurance, you are eligible to avail of wider coverage including COVID-19. One of the benefits of investing in indemnity health insurance is that you are covered for a broad range of treatments and procedures.

3. Economical Option

   Indemnity health insurance is mostly offered with the option of deductibles. Deductibles mean that a certain amount of treatment is paid by the policyholder.

   This reduces the risk of the insurer and also makes premiums more affordable for the policyholder. The higher the cost of the deductible the lower will be the premium.

Indemnity Health Insurance Inclusions

You WILL BE covered for:

• ICU expenses
• Day care treatments
• Modern treatments
• Diagnostics
• Hospitalization expenses like room rent, nursing charges, and more
• Consultation fees
• Ambulance charges

Indemnity Health Insurance Exclusions

You WILL NOT BE covered for:

• Cosmetic procedures
• Fat loss surgeries
• Injuries due to war
• Hospitalization due to drug abuse or overdose
• Injuries or hospitalization due to involvement in illegal activities

Corona Kavach Indemnity Insurance Plan

Corona Kavach, an indemnity health insurance plan launched by IRDAI was designed to combat COVID-19. The plan covers insured individuals for:

• PPE kits
• ICU cover
• Doctor’s fees
• Ambulance cover
• AYUSH treatment, and more

Wrapping It Up

Indemnity health insurance is ideal for those who are looking for affordable insurance providing wider coverage features. The health plan protects professional and business owners and can be availed by doctors, lawyers, financial advisors, real estate agents, and more.

If you want to know more about indemnity health insurance connect with our insurance experts at PolicyX.

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