For the members of insurance law, a contract of insurance is mostly defined as a contract where any one person called the insurer is undertaking in return for the agreed consideration. This consideration is called premium, where you have to pay to another person a sum of money or equivalent on happening of a specified event. According to some of the pro Lawyers in India, insurance might be well classified under two significant heads. One is called life insurance, and another category is placed under general insurance.
Life insurance is mainly referring to ensure the life of any individual. In most of the instances, this source will act as proper protection and even as an investment mode, depending mainly on happening or even the non-happening of a specified event now. The unique feature that you have to consider when it comes to life insurance is that it fails to involve indemnity principle, which otherwise forms crux of all insurance forms. Then you have general insurances, which primarily refer to other available insurance forms, including marine, fire, professional liability, and there are so much more to be added to the list.
Understanding professional liability insurance:
Want to know more about professional liability insurance, dedicated towards top lawyers in India? If so, then understanding the basic of professional liability insurance is the first stage. Also called indemnity or omission or errors insurance, this form of professional liability will cover the insured with respect to action, which has been the result of malpractice, negligence, omission or errors arising, while performing professional tasks.
- The corporate lawyers in India might be focusing towards these kinds of insurances, which will cover civil liability that any professional might suffer from. It will not deal with any claim from criminal liability.
- Professional misconduct or negligence might lead to some of the bodily injuries or can even cause financial loss, or both.
- The cover as provided against professional liability will address legal expenses and costs for covering trial and any amount of settlement or civil damage to be awarded against pros.
- However, the Indian law will not provide any specified statute for regulating multiple aspects of professional liability based insurance.
Liability insurance as seen in India:
When it comes to India, the professional liability insurance is not that popular. The same goes with intellectual act and professional practice rules of multiple professions mandate, which will be taking forth insurance cover. Then, the matter is left to will of any service provider or individual to take most out of the policy. you will get to learn more about the professional liability insurance’s hold in India from intellectual property lawyers in India now.
- Even though the medical establishments might opt for such insurance plans for covering higher number of medical negligence cases, you cannot say the same for legal firms. It is because lawyers hardly notice any negligence against them. So, they might not take help of professional liability insurance that often.
- In some other parts of the world other than India, like in the UK, it is mandatory for solicitors to take out and even maintain professional indemnity. It is mainly because of the higher number of files, placed against lawyers. The position is not exactly the same when it comes to India because there is no such mandate, which the Mergers and acquisitions lawyers or other Indian lawyers have to follow.
The coverage policy to consider:
It is hard to come across any regulation or rules for governing the extent of coverage, as provided by insurers. Most of these insurers will take that extra move in mentioning in their policy the extent of certain liability, which they can cover for professionals like Property Dispute Lawyers and more. If you house the legal field and even thinking of taking help of professional liability insurance, then it is mandatory to know the areas these insurers are here to cover for you.
- This policy is designed to cover law firms as that are into business of offering professional legal services. But, it is not mandated that either the law firms or legal professionals must take out any professional liability insurance.
- Any form of legal liability that a professional might incur will be because of financial loss that the client might have suffered. It is due to break in professional duty or any form of negligence from even the best tax lawyers in India.
- The claim amount as part of insurance will be inclusive of fees, costs and expenses, as incurred in just defending insured and any form of amount, as part of damage, compensation or even settlement, which is awarded to the insured individual.
- In some of the instances, lawyers may subscribe to some of the group insurances. A law firm is to take group based professional liability or indemnity insurances against all employees. The main reason over here is to facilitate any claim, which might rise against firm, mainly because of any action from either one employee or multiple of them.
Who can be termed professional in this regard?
Before you hand over such insurance claims, it is mandatory to know the professional held responsible to make you understand more about the insurance’s purposes. The private insurance companies are the one offering such professional liability insurance to the legal helpers, along with some of the other professionals of multiple sectors. So, getting along with the best private insurance firm, in this regard, will prove to be of great help.