“The legislations in the Arab region have not given extensive descriptions to professional liability of medical errors and let it up to general rules in civil liability, stating that those who cause damage to somebody shall take responsibility for it. The rule is attributing a malpractice to the party responsible for it to potentially oblige them with indemnity against the result damage of even negligence or lack of anticipation,” Abdul Khaliq Raaouf Khalil, Secretary General, the General Arab Insurance Federation (GAIF), told the opening ceremony of the two-day Professional Liability Forum which opens on Monday in Bahrain.
The Professional Liability Insurance Forum, being held under the auspices of the Central Bank of Bahrain and in association with the General Arab Insurance Federation (GAIF), in association with the Bahrain Insurance Association (BIA) on 21 and 22 October 2013.
“Today’s event comes amid excellent development and indicators at the Arab insurance market in general and the GCC markets specifically,” he said.
“Under the modernization process in the region, the insurance business has become in need for modernization not only to coincide with the rapidly changing requirements of consumers, but to be able to practice the more specialized branches of insurance including professional liability insurance.
“In fact, the contemporary concept of professional liability stands on two underpinnings, a professional one (administrative, engineering, medical, technical…etc.) and a legal one that lays the foundation for such liability based on the tasks and responsibilities and limits of the related power. That requires the performance of tasks and responsibilities in a professional way based on official measures and standards. The second thing is that failing, misusing, or negligence that entails endangering the rights of others as a result.
“Under this concept, we can argue that the culture of professional liability is in effect one of the human rights of modern day people.
“That justifies the need for professional liability products in their different forms and enhances these constant increases in the values of compensations, the widespread awareness of claiming and the response to legal requirements.
“In the context of our attempts at developing the Arab insurance industry to achieve the goals of the General Arab Insurance Federation that I have the honor to lead its secretary general, and given our conviction of the growth opportunities in the branches of liability insurance, the Insurance Committee that has as its members experts from all the walks of Arab insurance markets, conditions and regulations of policies applicable in the international and Arab markets on the professional liability insurance of offices and engineering companies, the insurance of liabilities of medical profession, the professional indemnity of insurance brokers, civil liability insurance for transport companies for covering transport on roads.
“As we are all aware, the responsibilities of the members of boards and executive managements at joint stock companies are a risky role and such responsibilities are among the topics handled by governance measures.
“In the same context, it is worth mentioning that banks face several risks. Besides financial risks, there are operations, finance, negligence, professional errors risks, let alone the risks of legal and professional responsibilities.
“Insurance companies are masters of dealing with dangers as one of their own functions. They provide a set of covers including the insurance for banks that covers operation risks and is a pillar for any private insurance program for banks, beside the various programs of legal and professional liability insurance for members of boards and executive managements, and insurance programs also include multi-faceted offerings.
“Some Arab insurance markets have recently seen changes due to the popular uprisings and incurred huge losses. That situation led to a low profitability rate of insurance companies in these markets, but their operational results were positive. And according to A.M. Best, the rating of most of these companies remained unchanged reflecting the resilience of insurance markets and their ability to absorb resulting risks.
“But the situations on such markets are still among the major threats. In this regard, a set of parameters have been set to cut such risks: setting special cover rules, tying commissions to technical results and setting conditions that oblige companies to shoulder indemnities above a certain threshold.
“Companies have to work towards raising awareness of the importance of insuring property against political violence and using the right subscription rules to set the fair price and special conditions of coverage.
“There shall be concordance between the conditions of basic covers given with those provided for in reinsurance agreements.
“Every insurance market has to be invited to mobilize its subscription capabilities of national companies in a shared pool to cover political risks. We hope we get legislations that regulate professional liability of medical errors – specifying the nature of such errors and take into account the exclusivity of this humanitarian profession,” he said.
“The most common instances of medical errors are related to: declining to offer treatment to a patient, patient’s satisfaction of treatment, errors or negligence in diagnosis, errors in subscription, anesthesia errors, giving treatment for other purposes than curing, obstetrics errors, surgery errors and medical errors at public and private hospitals.”
“The professional liability insurance of medical errors aims at indemnifying medical practitioners and their assistants as to protect them against the financial consequences of their professional errors. This cover can be extended to include hospitals, clinics and care centers,” he added.
“The programme of this forum includes several topics. We were keen to have an excellent participation of experts that give a deep view of the different sides of their professions. We are confident that this forum will add to our own knowledge and experience and I invite all participants to enrich the discussion with their amazing inputs,” he said.