Legal Profession (Professional Indemnity Insurance) Rules

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Legal Profession Act

(Chapter 161, Section 75A)

Legal Profession (Professional Indemnity Insurance) Rules

R 11

REVISED EDITION 1991

(25th March 1992)

[1st April 1991]

Citation

1. These Rules may be cited as the Legal Profession (Professional Indemnity Insurance) Rules.

Society may arrange for insurance scheme

2. The Council may make arrangements (in a representative capacity) with such insurance underwriters as it may approve, on such terms and conditions and with such exceptions as the Council thinks fit, to establish a common insurance scheme determined by the council for providing indemnity against loss arising from claims in respect of civil liability incurred by —

(a)	an advocate and solicitor or former advocate and solicitor in connection with his practice or with any trust of which he is or formerly was a trustee; and
(b)	an employee or former employee of an advocate and solicitor or former advocate and solicitor in connection with that advocate and solicitor’s practice or with any trust of which that advocate and solicitor or the employee is or formerly was a trustee.

Requirement to take out insurance

3. Every advocate and solicitor who intends to apply for a practising certificate shall, before making application for his certificate, take out and maintain in force at all times during the period he has in force a practising certificate such insurance as is referred to in rule 2 for the amount of insurance cover specified in rule 4 with an insurance underwriter approved by the Council.

Amount of insurance cover

4. The amount of insurance cover shall be —

(a)	for $500,000 for each and every claim in respect of civil liability referred to in rule 2; and
(b)	for the amount of any costs and expenses incurred in the defence or settlement of the claim except that the aggregate amount of such costs and expenses together with the claim shall not exceed 120% of the amount referred to in paragraph (a).

Excess

5.—(1) The Council may determine the amount of excess, if any.

(2) Such excess shall be determined by the Council in accordance with the number of practising advocates and solicitors in the law firm in which the insured advocate and solicitor is in practice at the time when the insurance is taken out but shall not exceed in any case $100,000.

Period of insurance

6. The period of insurance shall be the entire period during which the practising certificate of the insured advocate and solicitor is in force.

Exemption

7. These Rules shall not apply to any advocate and solicitor, who is employed by any statutory board or authority or who is a member of the legal service and who intends to apply for a practising certificate by virtue of the Attorney-General’s certificate issued under section 26(2) of the Act.

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