A Response to Members Regarding the Professional Indemnity Insurance Base Premium
Monday, 10 September 2012 10:41am
Bar Council notes a few Members have expressed dissatisfaction regarding the Professional Indemnity Insurance (“PII”) base premium imposed on all practising lawyers of the Malaysian Bar, claiming that it was too high as commented by Zainul Rijal in Free Malaysia Today, on 21 May 2012. Bar Council appreciates all comments about the mandatory PII Scheme (“Scheme”) and would like to provide some information on the Scheme.
The Scheme was introduced in 1992 with the intention of insuring every lawyer who is licensed to practise. The Scheme provides Bar Council the power to negotiate a reasonable premium and wider scope of equal cover to all Members. The policy under the Scheme provides cover for civil liability, including matters such as libel and slander, liability for loss of documents, fraud of employee and protection for innocent partners in the event of fraud or dishonesty of any other partner(s) or staff. The Scheme even provides protection for retiring or predeceased partners or sole practitioners who have been members of the Scheme.
In order to achieve lower premium, every practising lawyer should ensure that they practise good risk management culture to avoid claims being made against them. This is necessary to ensure the overall claims statistic is kept low, as the figure affects the amount of premium paid by Members. The Insurer looks at our claims statistic as a whole during negotiations regarding the amount of premium.
Since 2004 when the premium was at the highest (RM1,500 per lawyer), Bar Council through the PII Committee looked for ways to improve the Scheme to achieve a better footing to negotiate with the Insurer for reduction of premiums. The PII Committee embarked on a three-year plan with the priority on improving risk awareness, which correspondingly reduces claims. This led to the setting up of the PII and Risk Management Department, which seeks to inculcate a risk-aware culture amongst all lawyers and firms, accomplished through various risk management activities and initiatives made available to all Members for free or at a minimum cost. A few notable risk management efforts by the department include:
Publication
Description
Jurisk!
A
quarterly risk management newsletter featuring case file studies, tips
and a new section, “PII: Did You Know”, to help increase Members’
awareness on policy terms and conditions.
The newsletter is mailed out to all Members in March, June, September
and December annually. It is also available for download from
the Malaysian Bar website.
Best
Practice Guides Series
Comprising
four books; this series is a must-have for all lawyers. These
books are (a) Setting Up Practice; (b) Accounting for Lawyers; (c) Time
Management for Lawyers; and (d) Law Practice Management.
Practice
Alert
Aimed
at keeping Members updated on emerging risks and new practice traps.
These Alerts are circulated to all Members in Jurisk!.
START
Kit
The
legal starter kit aims to help new lawyers in their practice as well as
lawyers intending to set up new practice. The kit contains
the Best Practice Guide Series, Practice Area Checklist CD-ROM, Office
Management DVD-ROM and other array of practice tool.
The kits are given on a complimentary basis during the Ethics and
Professional Standards Course and for lawyers setting up new
practice. It can also be purchased from the Bar Council
Secretariat for RM50.
Calendar
The
calendar is published yearly featuring checklists, tips and many
more. It is a practical risk management tool that can easily
be referred to.
All lawyers receive the complimentary calendar by January of every year.
Practice
Area Checklist CD-ROM
A
useful aide memoire
for litigators and conveyancing lawyers to ensure no steps are missed.
Workshops
Description
Getting Started!
A
full-day event consisting of five sessions: considerations before
starting a practice, Bar Council requirements, managing accounts,
litigation practices, and conveyancing practices.
Risk
Management for Staff
A
workshop designed specifically to train law firm staff. The
workshop is conducted by senior lawyers, office managers and
consultants covering sessions on office management, accounting,
productivity and more.
Over the years, with practitioners having practised good risk management, the premiums have been reduced on four occasions, the most recent being the premium of RM1,140 for the coming year 2013, as announced in Circular No 154/2012 entitled “Reduction in Professional Indemnity Insurance Base Premium for 2013”. The PII Committee continuously strives to improve the Scheme to provide Members with better coverage.
Bar Council would like to take this opportunity to commend the good work that the PII Committee has done for the benefit of the Bar. Much has been achieved for the benefit of Members under the Scheme.
Nonetheless, Bar Council is always open to suggestions and ways to improve the Scheme for the benefit of Members. If you have any feedback or queries, please direct them to the department by telephone at 03-2032 4511, fax at 03-2031 6124 or by email at pirm@malaysianbar.org.my, where three officers are on hand to assist you.
2013 Bar Council subscription Click the link above to download Circular 090/2013 pertaining to the 2013 Bar Council subscription, including the payment guide and a set of Frequently-Asked-Questions.
2013 Hotel Corporate Rates Attending seminars? Going for a holiday? Click on the link above to check out the list of hotel corporate rates for Members of the Bar, which is updated regularly.
Starting a new Practice If you are thinking of setting up your own law practice, click on the link above to view Bar Council's information and checklists to help you prepare for your new endeavour.
International Arbitration Conference by CIArb Malaysia (22 to 24 Aug 2013) Organised by the Chartered Institute of Arbitrators, this conference will be held at Eastern & Oriental Hotel, 10 Lebuh Farquhar, 10200 George Town, Penang, from 22 to 24 Aug 2013 (Thursday to Saturday). The conference carries 10 CPD points. Early-bird rate ends on 30 Apr 2013. Click on the link above for more details.
Seminar on Islamic Finance Regulatory Framework (23 May 2013) Organised by the Bar Council Professional Standards and Development Committee, this seminar conducted by Megat Hizaini Hassan will be held at 2:00 pm to 5:30 pm, at Raja Aziz Addruse Auditorium, Bar Council, on 23 May 2013 (Thursday). The seminar carries three CPD points. Click on the link above for more details.
8th LAWASIA Employment Law Conference, Cambodia (24 and 25 May 2013) Organised by The Law Association for Asia and the Pacific (“LAWASIA”), this conference featuring Lia Alizia and Brian Williamson, will be held at Tara Angkor Hotel, Vithei Charles de Gaulle, Siem Reap, Cambodia, at 8:45 am to 7:00 pm and 9:00 am to 5:30 pm, on 24 and 25 May 2013 (Friday and Saturday), respectively. The conference carries 10 CPD points. Click on the link above for more details.
MSLSSL and MCLJ Conference on Employment and Labour Laws 2013 (30 May 2013) Organised by the Malaysian Society for Labour and Social Security Law and Malaysian Current Law Journal, this conference entitled “Current Issues on Employment and Labour Laws” will be held at 8:30 am to 6:00 pm, at Grand Hyatt Kuala Lumpur, on 30 May 2013 (Thursday). The conference carries six CPD points. Click on the link above for more details.
“Transforming Criminal Justice” One-week Study Programme (25 to 29 Nov 2013) Organised by Public Administration International (“PAI”), this UK-based one-week study programme entitled “Transforming Criminal Justice: from Joined-up Justice to Multi-agency Approaches” will be held in London from 25 to 29 Nov 2013 (Monday to Friday). For further enquiries, please contact PAI by telephone at +44 (0)20 7580 3590, by fax at +44 (0)20 7580 4746, or by email at pai@public-admin.co.uk.
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