Legal Profession (Professional Indemnity Insurance) Rules

Legal Profession Act

(Chapter 161, Section 75A)

Legal Profession (Professional Indemnity Insurance) Rules

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.

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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;

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(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;

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(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

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(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;

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(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

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(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.

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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 required by rule 4; and

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(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 required by rule 4 with an authorised insurer.

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(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 required by rule 4 with an authorised insurer.

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(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

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(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.

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(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.

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(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 solicitor 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 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

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(b) maintain in force such insurance at all times during the period the foreign lawyer or solicitor 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.

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Amount of insurance cover

4.—(1)  The amount of insurance cover shall be as specified in the Schedule.

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(2)  The Council may determine whether any amount of insurance cover specified in the Schedule 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.

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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.

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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.

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(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.

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(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 solicitor is employed by the law firm or law corporation or limited liability law partnership, as the case may be.

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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.

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(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.

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Exemption

7.  These Rules do not apply to any solicitor who is —

(a) employed by the Society or any statutory board or authority; and

(b) issued a certificate by the Attorney-General under section 26(3) of the Act.

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THE SCHEDULE

Rule 4

Amount of Insurance Cover

First column		Second column		Third column
1. For the purposes of rule 3(1)(a), if the advocate and solicitor is or will be practising in —
(a) a law firm		For each and every claim in respect of civil liability incurred by that advocate and solicitor		$1 million
(b) a law corporation		For each and every claim in respect of civil liability incurred by that advocate and solicitor —
		(a) if the law corporation has only one director		$1 million
		(b) in any other case		$2 million
(c) a limited liability law partnership		For each and every claim in respect of civil liability incurred by that advocate and solicitor		$2 million
2. For the purposes of rule 3(2)		For each and every claim in respect of civil liability incurred by the law corporation —
		(a) if the law corporation has only one director		$1 million
		(b) in any other case		$2 million
3. For the purposes of rule 3(2A)		For each and every claim in respect of civil liability incurred by the limited liability law partnership		$2 million.

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

LEGISLATIVE HISTORY

Legal Profession (Professional Indemnity Insurance) Rules

 

This Legislative History is provided for the convenience of users of the Legal Profession (Professional Indemnity Insurance) Rules. It is not part of these Rules.
1.	G. N. No. S 110/1991—Professional Indemnity Insurance Rules
	Date of commencement	:	1 April 1991
2.	G. N. No. S 158/1991—Professional Indemnity Insurance (Amendment) Rules 1991
	Date of commencement	:	1 April 1991
3.	1990 Revised Edition—Legal Profession (Professional Indemnity Insurance) Rules
	Date of operation	:	25 March 1992
4.	G. N. No. S 459/2000—Legal Profession (Professional Indemnity Insurance) Rules 2000
	Date of commencement	:	10 October 2000
5.	2002 Revised Edition—Legal Profession (Professional Indemnity Insurance) Rules
	Date of operation	:	31 January 2002
6.	G. N. No. S 73/2005—Legal Profession (Professional Indemnity Insurance) (Amendment) Rules 2005
	Date of commencement	:	1 April 2005
7.	G. N. No. S 662/2006—Legal Profession (Professional Indemnity Insurance) (Amendment) Rules 2006
	Date of commencement	:	1 January 2007
8.	G. N. No. S 386/2010—Legal Profession (Professional Indemnity Insurance) (Amendment) Rules 2010
	Date of commencement	:	1 April 2011
9.	G.N. No. S 695/2015—Legal Profession (Professional Indemnity Insurance) (Amendment) Rules 2015
	Date of commencement	:	18 November 2015
10.	G.N. No. S 18/2022—Legal Profession (Professional Indemnity Insurance) (Amendment) Rules 2022
	Date of commencement	:	14 January 2022