PROFESSIONAL indemnity insurance will come in handy for occupations that can
have a physical or financial impact on an individual.
Such a policy will cover the professional negligence of a practitioner in the
course of his work.
Lawyers are a good example as they provide legal advice to clients and are
expected to do so in a rightful manner.
However, if negligent and sued by the client, an insurance policy will cover the
financial repercussions experienced by the lawyer.
Locally, the legal profession is one that has a mandatory ruling on owning a
professional indemnity scheme.
“In order to receive a renewal certificate from the Malaysian Bar Council
annually, lawyers have to possess an insurance certificate as proof of
professional coverage,” said Malaysian Assurance Alliance Bhd (MAA Assurance)
assistant vice-president of general technical services, Teresa Wong.
She added that over and above the mandatory limit decreed by the bar, many
lawyers buy higher coverage because they also deal with financial institutions.
“A legal firm can seek coverage from WongRM200,000 to RM1 million, depending on
the number of practitioners in a practice,” she said.
According to PSG Medical Risks & Claims Management Sdn Bhd legal consultant Dr
K.M. Ponnusamy, all qualified professionals are professionally liable to their
customers.
Therefore professional indemnity provides a mechanism for financial recourse for
their clients.
“In my experience, demand for professional indemnity is not driven by price but
because they (professionals) know their (risk) exposure,” said Kevin Leung, ACE
Insurance Ltd financial lines manager for South Asia.
This includes professions such as accountants, engineers, architects and
property management executives.
Even Lonpac Insurance Bhd has worked with the Financial Planning Association of
Malaysia (FPAM) to provide professional indemnity coverage for financial
planners (who are FPAM members) with a liability limit of RM1 million. Premiums
charged can reach RM6,500 per annum for corporate members.
“The professional indemnity growth in this market is driven by contract
requirements because these professionals are expected to have protection when
they are engaged for projects,” said Leung.
Another alternative is seeking professional indemnity coverage for specific
projects such as the construction of bridges or highways.
“When consulting engineers are under contractual projects, some principals of
the development will provide insurance coverage,”said MAA Assurance’s Wong.
She said that there has been protection requests for specific mega projects
involving intense civil engineering or design work undertaken on bridges or
elevated highways.
2012 Bar Council Subscription Click the link above to download Circular 072/2012 pertaining to the 2012 Bar Council subscription, including the payment guide and a set of Frequently-Asked-Questions.
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International Malaysia Law Conference (26 to 28 Sept 2012) Hurry up! The countdown continues and the current promotion rate ends 30 June 2012. Don't miss what is going to be the best conference in the region! On top of that, if you sign up with 5 or more people from the same organisation, we will give you a 10% group discount. Click on the link above to register.
Seminar on Professional Misconduct (18 May 2012) Organised by the Kuala Lumpur Bar Professional Development Committee, this seminar will take place at 3:00 pm, at the Kuala Lumpur Bar Auditorium, on 18 May 2012 (Friday). The seminar will be conducted by Dato' Jerald Gomez. Click on the link above for more details.
Seminar on an Introduction to the Industrial Relations Act (23 May 2012) Organised by the Kuala Lumpur Bar Professional Development Committee, this seminar will take place at 3:00 pm, at the Kuala Lumpur Bar Auditorium, on 23 May 2012 (Wednesday). The seminar will be conducted by Wong Keat Ching. Click on the link above for more details.
Seminar on Tax Issues in Financial Transactions (25 May 2012) Organised by the Kuala Lumpur Bar Professional Development Committee, this seminar, featuring S Saravana Kumar, will take place at 3:00 pm, at the Kuala Lumpur Bar Auditorium, on 25 May 2012 (Friday). Click on the link above for more details.
Conference on Competition Law (31 May 2012) Organised by Bar Council with the support of LexisNexis, this conference will take place at 8:30 am to 4:00 pm, at Renaissance Kuala Lumpur Hotel, on 31 May 2012 (Thursday). For more details or to register, please contact Vilashini Vijayan (03-2050 2095; vila@malaysianbar.org.my). Click on the link above for more details.
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Circular No 102/2012: Mahkamah Sesyen/Majistret Kajang Moving to Kompleks Mahkamah Kajang
