Legal Profession (Professional Indemnity Insurance) Rules

Legal Profession Act

(Chapter 161, Section 75A)

R 11

G.N. No. S 459/2000

REVISED EDITION 2002

(31st January 2002)

[10th October 2000]

Citation

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

Definition

1A. In these Rules, unless the context otherwise requires —

“authorised insurer” means an insurance underwriter approved by the Council;

“foreign lawyer” has the same meaning as in section 130A of the Act;

“law firm” has the same meaning as in the Legal Profession (Professional Conduct) Rules (R 1);

“Singapore lawyer” has the same meaning as in section 130A of the Act.

[S 662/2006 wef 01/01/2007]

Society may arrange for insurance scheme

2. The Council may make arrangements (in a representative capacity) with authorised insurers, 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 in any law firm, law corporation or limited liability law partnership, or with any trust of which he is or formerly was a trustee;

[S 662/2006 wef 01/01/2007]

(b)

an employee or former employee of —

(i)	an advocate and solicitor or a former advocate and solicitor in connection with the practice of that advocate and solicitor in any law firm or former law firm or with any trust of which that advocate and solicitor or the employee is or formerly was a trustee; [S 662/2006 wef 01/01/2007]
(ii)	a law corporation or former law corporation in connection with its business of providing legal services or with any trust of which the law corporation or the employee is or formerly was a trustee; or [S 662/2006 wef 01/01/2007]
(iii)	a limited liability law partnership or former limited liability law partnership in connection with its business of providing legal services or with any trust of which the limited liability law partnership or the employee is or formerly was a trustee; [S 662/2006 wef 01/01/2007]

(c)

a law corporation or former law corporation in connection with legal services provided by it or with any trust of which that law corporation is or formerly was a trustee; and

[S 662/2006 wef 01/01/2007]

(d)

a limited liability law partnership or former limited liability law partnership in connection with legal services provided by it or with any trust of which that limited liability law partnership is or formerly was a trustee.

[S 662/2006 wef 01/01/2007]

Requirement to take out insurance

3.—(1) Every advocate and solicitor who intends to apply for a practising certificate shall —

(a)

before making an application for the certificate, take out such insurance as is referred to in rule 2(a) with an authorised insurer for the amount of insurance cover specified —

(i)	in rule 4(1)(a) if he is or will be practising in a law firm; [S 662/2006 wef 01/01/2007]
(ii)	in rule 4(1)(b) if he is or will be practising in a law corporation; and
(iii)	in rule 4(1)(ba) if he is or will be practising in a limited liability law partnership; and [S 662/2006 wef 01/01/2007]

(b)

maintain in force such insurance at all times during the period he has in force a practising certificate.

(2) Every law corporation shall take out and maintain in force at all times during the period in which it carries on its business of providing legal services such insurance as is referred to in rule 2(c) for the amount of insurance cover specified in rule 4(1)(c) with an authorised insurer.

[S 662/2006 wef 01/01/2007]

(2A) Every limited liability law partnership shall take out and maintain in force at all times during the period in which it carries on its business of providing legal services such insurance as is referred to in rule 2(d) for the amount of insurance cover specified in rule 4(1)(d) with an authorised insurer.

[S 662/2006 wef 01/01/2007]

(3) Every law corporation and limited liability law partnership, and every advocate and solicitor practising in a law firm (except a locum solicitor), that engages a locum solicitor shall —

(a)

take out insurance under the common insurance scheme referred to in rule 2 against loss arising from claims against such a law corporation or limited liability law partnership, or such advocates and solicitors, in respect of civil liability incurred by the locum solicitor in connection with his practice in the law firm or the legal services provided by the law corporation or limited liability law partnership, as the case may be; and

[S 662/2006 wef 01/01/2007]

(b)

maintain in force such insurance at all times during the period the locum solicitor is engaged by the law firm in which the advocate and solicitor is practising or by the law corporation or limited liability law partnership, as the case may be.

[S 662/2006 wef 01/01/2007]

[S 73/2005 wef 01/04/2005]

(4) Nothing in this rule requires a locum solicitor to take out any insurance referred to in rule 2 in connection with his practice as a locum solicitor.

[S 73/2005 wef 01/04/2005]

(5) Every law corporation and limited liability law partnership, and every advocate and solicitor practising in a law firm, that employs a foreign lawyer or a Singapore lawyer who does not hold a practising certificate shall —

(a)

take out insurance under the common insurance scheme referred to in rule 2 against loss arising from claims against such a law corporation or limited liability law partnership, or such advocates and solicitors, in respect of civil liability incurred by the foreign lawyer or Singapore lawyer in connection with his practice in the law firm or the legal services provided by the law corporation or limited liability law partnership, as the case may be; and

(b)

maintain in force such insurance at all times during the period the foreign lawyer or Singapore lawyer is employed by the law firm in which the advocate and solicitor is practising or by the law corporation or limited liability law partnership, as the case may be.

[S 662/2006 wef 01/01/2007]

Amount of insurance cover

4.—(1) The amount of insurance cover shall be —

(a)	$1 million, or such other amount as may be determined by the Council, for each and every claim in respect of civil liability incurred by an advocate and solicitor practising in any law firm;
(b)	$2 million, or such other amount as may be determined by the Council, for each and every claim in respect of civil liability incurred by an advocate and solicitor practising in any law corporation; [S 662/2006 wef 01/01/2007]
(ba)	$2 million, or such other amount as may be determined by the Council, for each and every claim in respect of civil liability incurred by an advocate and solicitor practising in any limited liability law partnership; [S 662/2006 wef 01/01/2007]
(c)	$2 million, or such other amount as may be determined by the Council, for each and every claim in respect of civil liability incurred by a law corporation; and [S 662/2006 wef 01/01/2007]
(d)	$2 million, or such other amount as may be determined by the Council, for each and every claim in respect of civil liability incurred by a limited liability law partnership. [S 662/2006 wef 01/01/2007]

(2) The Council may determine whether the amount of insurance referred to in paragraph (1) shall be inclusive of costs and expenses incurred in the defence or settlement of any claim in respect of civil liability incurred by the advocate and solicitor or law corporation or limited liability law partnership, as the case may be.

[S 662/2006 wef 01/01/2007]

Excess

5. The Council may determine the amount of excess, if any, that shall apply to any claim against an advocate and solicitor or a law corporation or a limited liability law partnership, or to the costs and expenses incurred in the defence or settlement of such claim or to both the claim and costs and expenses.

[S 662/2006 wef 01/01/2007]

Period of insurance

6.—(1) The period of insurance shall be the entire period during which the practising certificate of the insured advocate and solicitor is in force or the insured law corporation or limited liability law partnership carries on its business of providing legal services, as the case may be.

[S 73/2005 wef 01/04/2005]

[S 662/2006 wef 01/01/2007]

(2) In the case of insurance referred to in rule 3(3), the period of insurance shall be the period when the locum solicitor is engaged as a locum solicitor by the law firm or law corporation or limited liability law partnership, as the case may be.

[S 73/2005 wef 01/04/2005]

[S 662/2006 wef 01/01/2007]

(3) In the case of insurance referred to in rule 3(5), the period of insurance shall be the period when the foreign lawyer or the Singapore lawyer is employed by the law firm or law corporation or limited liability law partnership, as the case may be.

[S 662/2006 wef 01/01/2007]

Payment of premium

6A.—(1) An advocate and solicitor, a law corporation or a limited liability law partnership shall be deemed to have contravened the requirement to maintain insurance under rule 3 if any payment by way of premium for insurance that the advocate and solicitor, law corporation or limited liability law partnership (as the case may be) is required to maintain under that rule remains unpaid for more than 2 months after the date when the payment became due.

(2) Paragraph (1) shall apply notwithstanding that the advocate and solicitor, law corporation or limited liability law partnership has made any arrangement for the payment to be made by any other person.

[S 662/2006 wef 01/01/2007]

Exemption

7. These Rules shall not apply to —

(a)	any solicitor who is employed by the Society or any statutory board or authority and who is issued a certificate by the Attorney-General under section 26(3) of the Act; or
(b)	a member of the Singapore Legal Service.

[G.N. No. S 459/2000]

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