New Delhi : In a significant ruling strengthening patient rights, the Supreme Court of India has upheld that hospitals are vicariously liable for deaths caused by the medical negligence of their doctors.
The apex court, in a verdict dated April 22, 2025, upheld the National Consumer Disputes Redressal Commission’s (NCDRC) decision, affirming that both doctors and hospitals can be held accountable when lapses in medical care lead to a patient’s death.
The case pertained to the death of a 27-year-old man, Shivram Prasad’s son, at Kamineni Hospital, Andhra Pradesh, in December 2006. The patient had been admitted with a fractured left leg and was operated on without proper evaluation or informed consent. According to the court, classic signs of fat embolism were present but went untreated, leading to the patient’s death. Despite claims of adherence to standard protocols, the hospital failed to disprove allegations of negligence.
“Upon going through the case records, there is ample evidence indicating medical negligence by the hospital (Kamineni Hospital) and the doctor (Dr. J.V.S. Vidyasagar),” the judgment stated.
As part of the ruling, the Supreme Court ordered a fine of ₹10 lakh on Kamineni Hospital, alongside the ₹5 lakh penalty already imposed on the doctor.
Understanding Vicarious Liability
The court’s decision emphasized the principle of vicarious liability, wherein hospitals can be held responsible for negligent acts committed by doctors, nurses, or technicians employed or empanelled by them.
“Hospitals are liable because patients rely on the institution’s reputation for consistent, competent care. A breach of this duty—whether by omission or commission—constitutes actionable negligence,” explained Biplab Lenin, Partner, Cyril Amarchand Mangaldas.
Even if a hospital itself is not directly negligent, liability can arise if it exercises control over the services provided by its staff. This ensures institutions remain accountable for the actions of their personnel.
Legal Remedies for Aggrieved Families
Families affected by medical negligence have multiple avenues for seeking compensation:
- Filing a consumer complaint under the Consumer Protection Act.
- Initiating a civil suit for damages.
- Lodging a criminal complaint for causing death by negligence in serious cases.
- Filing complaints with the State Medical Council or National Medical Commission for disciplinary action.
Key evidence in such cases typically includes medical records, diagnostic test reports, treatment notes, and expert medical opinions.
Role of Insurance in Medical Negligence Cases
Hospitals and doctors often maintain professional indemnity insurance, which can cover liabilities arising from negligence claims. This ensures that victims or their families receive due compensation.
Patients may also claim benefits from their personal life insurance policies. According to Devansh Jain, Partner, PSL Advocates & Solicitors, “Death claims attributable to medical negligence are not excluded under life insurance policies and must be settled as per the contract terms.”
However, health insurance policies usually cover treatment expenses and may not necessarily extend to claims arising from medical negligence.
