Page 48 - Liability Insurance IC74

The Insurance Times

liable to pay damages for negligence in the
performance of his duties.
Ans. Professional indemnities are designed to provide
insurance protection to professional people such as
doctors, solicitors, chartered accountants, architects etc
against their legal liability to pay damages arising out of
negligence in the performance of their professional
duties.

The need for insurance protection to cover the legal
liability is felt by the professionals because of the
increasing claims consciousness on the part of their
clients. Professional people, like everybody else, are
prone to commit errors in conducting their business,
particularly so in the modern conditions of life which
are more complex and stressful.

If a person holds himself out as an expert, he is expected
to show a high degree of skill than the average people,
so the basis of liability is professional negligence which
presupposes the existence of a duty of care, a breach
of the duty of loss or damage caused by the breach.
Professional risks may be classified into three broad
groups:
(a) Where professional negligence may result in bodily

injuries. E.g, for doctors, dentists, surgeons etc.
(b) Where professional negligence may result in financial

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