Policybazaar for Business Examines AI and Healthcare Accountability

Artificial intelligence is increasingly making its way into healthcare as the next big force. Recognising the urgency and potential of this shift, Policybazaar for Business, the corporate arm of one of India’s largest insurance platforms, has studied its impact in its latest whitepaper - Artificial Intelligence in Healthcare: Revolutionising Patient Care and System Efficiency.

The report makes a clear case for the integration of AI into India’s healthcare system, and backs it up with data and actionable recommendations. The study goes beyond the technology narrative to examine how AI’s rapid integration is reshaping risk and responsibility in Indian healthcare, and why professional indemnity frameworks must evolve in parallel.

Transforming patient care through AI

India is home to over 1.4 billion people and has just 1.3-1.4 hospital beds per 1,000 population. This figure is well below the recommended threshold of three beds. The whitepaper highlights how AI-enabled platforms can reduce diagnostic turnaround times by up to 80%, particularly in radiology. The adoption of AI in diagnostics will enable faster treatment and better outcomes, especially in underserved regions.

AI in action: Real world success stories

 The paper highlights real-world instances where AI is already transforming patient care:

●        Qure.ai’s qXR tool screens for tuberculosis in remote districts.

●        Niramai’s Thermalytix system enables non-invasive breast cancer detection using thermal imaging.

●        Manipal Hospitals have reduced discharge times from 4–8 hours to just one through AI-based automation.

●        Strand Life Sciences uses AI-driven genomics to deliver personalised cancer therapies.

Meanwhile, platforms such as Practo and Mfine employ AI chatbots to assist over 100 million patients monthly, while Apollo 24/7 relies on AI for triage and teleconsultations.

The accountability question: What happens when AI gets it wrong?

As AI moves from supporting medical professionals to actively shaping medical decisions, the definition of accountability is evolving. When algorithms interpret scans or suggest treatments, the question of who bears the liability becomes increasingly complex.

Yet, the whitepaper points out, only about 20% of Indian doctors currently have professional indemnity (PI) insurance, and most existing policies do not explicitly cover AI-related liabilities. Policybazaar for Business is working with healthcare professionals to review and strengthen their indemnity cover, ensuring doctors are protected against errors linked to AI-assisted decisions, especially in high-stakes fields like cardiology and oncology.

Sajja Praveen Chowdary, Head, Policybazaar for Business, “With AI’s usage increasing across the healthcare industry, the role of doctors is also evolving. 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. The conversation on AI in healthcare must go hand in hand with trust and transparency.”

Preparing for an AI-driven future

The whitepaper forecasts that by 2030, AI could help reduce diagnostic errors by up to 30%, and telemedicine, under the Ayushman Bharat Digital Mission, could extend care to 500 million Indians. With $1.4 billion in private AI investment this year, India ranks among the world’s top ten markets for AI innovation.

The report concludes with a call to action: policymakers, insurers, hospital administrators, and clinicians must collaborate to build digital infrastructure, set clear regulatory frameworks, and enable public-private partnerships that can scale AI solutions responsibly and effectively.