WEDNESDAY, DECEMBER 17, 1980
INDEMNITY INSURANCE FOR SOLICITORS MADE COMPULSORY
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THE LEGAL PRACTITIONERS (AMENDMENT)(NO. 3) BILL 1980, WHICH PROPOSED A COMPULSORY PROFESSIONAL INDEMNITY INSURANCE SCHEME, PASSED ITS THIRD READING IN THE LEGISLATIVE COUNCIL TODAY. AT ITS COMMITTEE STAGE IT WAS RETITLED THE NO. 2 AMENDMENT BILL.
MOVING THE SECOND READING OF THE BILL, THE LAW DRAFTSMAN, THE HON GERALD NAZARETH SAID SUCH A SCHEME WOULD BE OF ADVANTAGE TO SOLICITORS, WHO WOULD BE ABLE TO SECURE INSURANCE AT FAVOURABLE RATES AND ON ADVANTAGEOUS TERMS.
IT WILL ALSO BE OF SIGNIFICANT BENEFIT TO THE PUBLIC IN ENSURING THAT CLIENTS WHO SUSTAIN LOSS OR DAMAGE THROUGH THE DEFAULT OF THE IR SOLICITORS WILL NOT FAIL, WITHIN THE LIMITS, TO OBTAIN COMPENSATION BECAUSE THEIR SOLICITORS MAY NOT HAVE SUFFICIENT FUNDS, HE SAID.
MR NAZARETH SAID THE SCHEME WAS TO BE FUNDED BY ANNUAL PREMIUMS PAID BY ALL SOLICITORS IN PRIVATE PRACTICE, AND WAS SIMILAR IN CONCEPT TO SCHEMES IN ENGLAND AND AUSTRALIA.
THE LIMITS OF ALL CIVIL LIABILITY FOR EACH CLAIM ARE AS FOLLOWS:
* FOR A SOLE PRACTITIONER, UP TO $350 000,
*
IN THE CASE OF PARTNERS, UP TO $240 000 FOR EACH PARTNER, AND UP TO $125 000 FOR ASSISTANT SOLICITORS OR CONSULTANTS- AND
* IN THE CASE OF FIRMS OF SOLICITORS, THE
AGGREGATE OF THE INDIVIDUAL SUMS FOR EACH PARTNER.
MR NAZARETH SAID IN TODAY'S INFLATIONARY TIMES, THESE LIMITS MIGHT SEEM A LITTLE LOW, ON THE OTHER HAND THEY REPRESENT A SIGNIFICANT AND USEFUL BEGINNING AND, OF COURSE, THEY ARE MERELY MINIMUM REQUIREMENTS, HE SAID.
HE SAID IT WAS ESSENTIAL THAT THE BILL PASSED ALL ITS READINGS IN THE COUNCIL TODAY.
/+IN LEGAL