TATA AIG Professional Indemnity (PI) Insurance

What is Professional Indemnity (PI) Insurance?

Professional Indemnity Insurance offers financial protection to professionals—such as doctors, lawyers, architects, and consultants—against legal claims arising from unintentional mistakes, errors, or omissions in their services. It covers legal defence costs, settlements, or compensation, safeguarding their reputation and hard-earned reputation.

Why is Professional Indemnity Insurance Important?

• Financial Security: It helps cover defence costs, settlements, and damages, reducing the financial burden during legal disputes.
• Broad Coverage: Suitable for a wide range of professionals including medical practitioners, legal professionals, architects, and more.
• Business Continuity: Ensures professionals can continue their work without disruption or financial strain caused by legal claims.

Who Can Purchase Professional Indemnity Insurance?

• Medical Practitioners
• Interior Designers
• Chartered Accountants
• Lawyers
• IT Consultants
• And many other professionals

Types of Professional Indemnity Insurance

Different professions face unique risks, so PI insurance is tailored accordingly:

• Business Indemnity for Companies: For service-based firms like IT, marketing, or consulting agencies.
• Medical Professionals: Covers claims related to misdiagnosis or treatment errors.
• Chartered Accountants: Protects against claims from clients suffering financial loss due to advice.
• Lawyers: Guards against claims for incorrect advice or missed deadlines.
• Architects: Covers liabilities arising from design flaws.
• Consultants: Protects individuals in HR, finance, or business strategy from claims due to advice impacts.

How Does It Work?

Unlike property or theft insurance, PI insurance covers claims made during the policy period for errors or omissions in professional services. It also covers retroactive claims—those related to work done before the policy start date, provided the retroactive date is maintained.

• When a client alleges a financial loss or harm due to professional negligence, the insurer steps in to cover legal costs and damages.
• The claim must be reported during the policy period; timely reporting is essential.

Understanding the Retroactive Date

The retroactive date marks the earliest point from which past work is covered. For example, if your retroactive date is April 1, 2018, claims related to errors made after this date are covered, even if the claim is filed years later. Transferring this date when switching insurers is crucial to avoid gaps in coverage.

TATA AIG Professional Shield — Features & Benefits

• Retroactive Coverage: Protects against claims from work done on or after the retroactive date.
• Legal Defence Coverage: Includes costs for legal representation.
• Extended Reporting Period: 90-day window after policy expiry for reporting claims.
• Multi-Profession Suitability: One policy can cover multiple professionals.
• Digital Convenience: Purchase, claim tracking, and renewals online.

Coverage Highlights

• Damages from professional errors or omissions
• Legal defence costs
• Court attendance benefit (₹1,000/day)
• Expenses for restoring lost documents
• Retroactive claims coverage

Exclusions — What's Not Covered?

• Bodily injury & property damage
• Contractual liabilities beyond professional duty
• Defamation or reputation damage
• Fraud, criminal acts, or deliberate misconduct
• Environmental damage
• Claims from insolvency or bankruptcy
• Pre-existing known issues
• Patent or trade secret infringement
• Antitrust or unfair competition
• Employment-related claims
• Infrastructure failures
• Fines, penalties, or punitive damages
• Claims by related entities
• War or terrorism-related claims

Factors to Consider Before Buying

• Set an appropriate sum insured based on your liabilities.
• Be transparent about past claims or incidents.
• Understand policy inclusions/exclusions thoroughly.
• Verify the retroactive date coverage.
• Review claim processes and support.
• Compare premiums and coverage options.

How to Purchase from TATA AIG

1. Visit the official TATA AIG website.
2. Enter your personal and professional details.
3. Choose the sum insured and complete the payment.
4. Submit required documents like ID proof, qualifications, and income details.

Filing a Claim

1. Notify TATA AIG immediately upon a claim or potential claim.
2. Share all relevant details and documents.
3. Avoid admitting liability without insurer approval.
4. Cooperate fully during the investigation.
5. Await insurer's assessment and response.

Policy Limits

• Any One Accident (AOA): Max payout for a single claim.
• Any One Year (AOY): Total payout for all claims in a policy year.

You can choose ratios like 1:1, 1:2, or 1:4 to determine how limits are applied.

Frequently Asked Questions