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What is the story about?
As artificial intelligence (AI) becomes a growing part of India’s healthcare ecosystem, a new report suggests that most medical professionals remain underinsured against potential technology-linked risks. According to Policybazaar for Business, only about 20% of Indian doctors currently hold professional indemnity (PI) insurance, and most existing policies do not explicitly cover AI-related liabilities or errors.
The findings are part of Policybazaar for Business’s whitepaper titled “Artificial Intelligence in Healthcare: Revolutionising Patient Care and System Efficiency.”
The study explores how AI is reshaping diagnostics, treatment, and patient management, while also changing the boundaries of medical accountability.
What professional indemnity insurance covers
Professional indemnity insurance offers financial and legal protection to doctors against claims of negligence, error, or omission made while performing professional duties.
It can cover costs arising from court proceedings, out-of-court settlements, or compensation payments if a patient alleges misdiagnosis, surgical error, or improper treatment.
The cover is available not just for doctors and surgeons but also for general practitioners, dentists, psychologists, and neurologists.
Even when a practitioner is ultimately cleared of negligence, legal costs and reputational damage can be significant — making PI insurance an important financial safeguard.
Why it matters in the age of AI
With the rapid integration of AI into diagnostics, clinical decision-making, and patient management, medical liability is becoming more complex.
The whitepaper notes that AI tools are already helping reduce diagnostic turnaround times by up to 80%, especially in radiology, but they also raise new questions: Who is accountable if an AI system misreads a scan or suggests an incorrect treatment path?
At present, most indemnity policies do not cover such AI-assisted decisions, meaning doctors could be personally liable if a patient files a claim related to algorithm-driven errors.
“With AI’s usage increasing across the healthcare industry, the role of doctors is also evolving,” said Sajja Praveen Chowdary, Head, Policybazaar for Business. “This evolution demands a new layer of protection, and professional indemnity coverage is adapting to include technology-assisted decisions to ensure doctors can embrace innovation while being legally covered.”
Broader context: efficiency and exposure
India’s healthcare system, with 1.3–1.4 hospital beds per 1,000 people, stands to gain significantly from AI-led efficiencies. The whitepaper highlights examples such as Qure.ai’s qXR tool for tuberculosis screening, Niramai’s Thermalytix system for non-invasive breast cancer detection, and Manipal Hospitals, which has reportedly cut discharge times from several hours to one through AI-based automation.
Meanwhile, digital health platforms such as Practo, Mfine, and Apollo 24/7 are using AI chatbots and triage systems to serve millions of patients each month.
Need for updated frameworks
The report notes that with enhanced patient awareness, expanding medical practice, and rising settlement amounts in medical disputes, the financial and reputational risk for doctors is increasing. AI’s growing role adds another dimension to this exposure, making indemnity cover more relevant than ever.
By 2030, AI could help reduce diagnostic errors by up to 30%, and telemedicine could extend healthcare to 500 million Indians, according to the whitepaper.
But for these benefits to be realised safely, Policybazaar for Business says insurance frameworks, hospital protocols, and legal guidelines must evolve in step with technology adoption.
The findings are part of Policybazaar for Business’s whitepaper titled “Artificial Intelligence in Healthcare: Revolutionising Patient Care and System Efficiency.”
The study explores how AI is reshaping diagnostics, treatment, and patient management, while also changing the boundaries of medical accountability.
What professional indemnity insurance covers
Professional indemnity insurance offers financial and legal protection to doctors against claims of negligence, error, or omission made while performing professional duties.
It can cover costs arising from court proceedings, out-of-court settlements, or compensation payments if a patient alleges misdiagnosis, surgical error, or improper treatment.
The cover is available not just for doctors and surgeons but also for general practitioners, dentists, psychologists, and neurologists.
Even when a practitioner is ultimately cleared of negligence, legal costs and reputational damage can be significant — making PI insurance an important financial safeguard.
Why it matters in the age of AI
With the rapid integration of AI into diagnostics, clinical decision-making, and patient management, medical liability is becoming more complex.
The whitepaper notes that AI tools are already helping reduce diagnostic turnaround times by up to 80%, especially in radiology, but they also raise new questions: Who is accountable if an AI system misreads a scan or suggests an incorrect treatment path?
At present, most indemnity policies do not cover such AI-assisted decisions, meaning doctors could be personally liable if a patient files a claim related to algorithm-driven errors.
“With AI’s usage increasing across the healthcare industry, the role of doctors is also evolving,” said Sajja Praveen Chowdary, Head, Policybazaar for Business. “This evolution demands a new layer of protection, and professional indemnity coverage is adapting to include technology-assisted decisions to ensure doctors can embrace innovation while being legally covered.”
Broader context: efficiency and exposure
India’s healthcare system, with 1.3–1.4 hospital beds per 1,000 people, stands to gain significantly from AI-led efficiencies. The whitepaper highlights examples such as Qure.ai’s qXR tool for tuberculosis screening, Niramai’s Thermalytix system for non-invasive breast cancer detection, and Manipal Hospitals, which has reportedly cut discharge times from several hours to one through AI-based automation.
Meanwhile, digital health platforms such as Practo, Mfine, and Apollo 24/7 are using AI chatbots and triage systems to serve millions of patients each month.
Need for updated frameworks
The report notes that with enhanced patient awareness, expanding medical practice, and rising settlement amounts in medical disputes, the financial and reputational risk for doctors is increasing. AI’s growing role adds another dimension to this exposure, making indemnity cover more relevant than ever.
By 2030, AI could help reduce diagnostic errors by up to 30%, and telemedicine could extend healthcare to 500 million Indians, according to the whitepaper.
But for these benefits to be realised safely, Policybazaar for Business says insurance frameworks, hospital protocols, and legal guidelines must evolve in step with technology adoption.
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