Indemnity InsuranceAlso known as liability insurance, Indemnity policy indemnifies the loss occurred due to the negligence of the insured professional under specific terms and conditions. Normally this covers the loss of third party and includes all the expenses and litigation costs as agreed by the insurer and the terms accepted by the insured. The scope of covering the full compensation and all other costs vary from company to company. Compensation under this insurance is decided by the consumer courts and has to be borne by the insured professionals. This claim is paid by the insurer up to the limit of coverage opted by the insured. Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability for damages. Since the area of coverage under this policy differs from professional to professional it is always advised to have a well calculated risk of one's job specially if you are into the Medical Profession.
Indemnity Policy comes into the effect:
- When case for compensation is filed against the professional in any civil court.
- Compensation is decided on the merits of the case and by the court.
- Insurance companies have set pattern of charges for legal costs and expenses and the insured doesn't have the liberty to spend as much money as they want for arranging/hiring any specific expert.
- Indemnity Insurance is for compensation and not for the Prevention, advise, Guidance or amicable settlement of any matter.
Read the detail terms and conditions of Indemnity Insurance
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