Images transmitted over unreliable channels are highly prone to errors. This produces severe distortion in the images and are usually repaired using post processing techniques called error concealment techniques. In this paper, the authors propose a new method of error concealment using the principle of digital watermarking. The watermark used in this case is not a separate digital data, but some important information derived from the original image itself. This data can be used for concealing the errors which have occurred during transmission. Obviously the techniques used for retrieving the watermark, which in this case would be used for error concealment, should be blind. Experimental results show the advantage of the proposed scheme for error concealment with loss of blocks of different sizes as well as loss of contiguous blocks. Apart from it, ownership authentication is also achieved