1964_SOLICITORS_(PROFESSIONAL_INDEMNITY)_RULES — Page 19

1989 Ed.]

Solicitors (Professional Indemnity) Rules

[CAP. 159

M 19

[Subsidiary]

settlement of any claim in respect of which the Practice or member or former solicitor is entitled to Indemnity, such Practice or member or former solicitor shall reimburse to the Company on behalf of the fund the difference between the sum payable out of the fund in respect of that claim and the sum which would have been payable in the absence of such prejudice.

(2) It shall be a condition precedent of the right of the Company on behalf of the fund to such reimbursement that it shall first have provided full Indemnity for such Practice or member or former solicitor by payment (up to the limits contained in paragraphs 2 and 3) in or towards satisfying, or in or towards enabling such Practice or member or former solicitor to satisfy the claim and claimants' costs in accordance with the terms hereof.

8. General Conditions

(1) (a) The indemnified shall not admit liability for, or settle, any claim falling under rule 10 or incur any costs or expenses in connection therewith without the prior consent of the Company (such consent not to be unreasonably withheld), and subject to sub- subparagraph (c) shall procure that the Company shall be entitled at the fund's own expense at any time to take over the conduct in the name of the indemnified of the defence or settlement of any such claim, including any claim in respect of which the indemnified may become entitled to partial indemnity under any insurance with any insurers and any claim which but for paragraphs 2(2), 3(1)(b) or 3(2)(b) would have fallen within the scope of the Indemnity provided by these rules.

(b) Subject to sub-subparagraph (c) and to the limitation on the amount of the fund's liability contained in paragraphs 2 and 3, if the indemnified unreasonably refuses to consent to or to accept any proposed settlement made by the Company or continues any legal proceedings in connection therewith the fund's liability to provide Indemnity to the indemnified shall be limited to the amount for which the claim against the indemnified could have been so settled plus any related costs incurred up to the date of such refusal.

(c) Neither the indemnified nor the fund shall be required to contest any legal proceedings unless a Queen's Counsel (to be mutually agreed upon or failing agreement to be appointed by the President of the Society for the time being) shall advise that such proceedings should be contested.

(2) The indemnified shall procure that notice to the Company shall be given in writing as soon as practicable of—

(a) any claim under rule 10 made during the period of indemnity against the indemnified; (b) the receipt by the indemnified of notice from any person of any intention to make any

such claim. (3) The indemnified shall also give notice in writing to the Company of any circumstances of which the indemnified becomes aware during the period of indemnity and which may (whether during or after the period of indemnity) give rise to any such claim.

(4) Any notice to be given to the Company under subparagraph (2) or (3) must be received by the Company not later than the last day of the period of indemnity during which such claim is made, notice is received or circumstances become known, except that the Company may, in its sole discretion, accept such notification not later than 60 days following the last day of such period of indemnity.

(5) If notice is given to the Company under subparagraph (2)(b) or (3), any claim subsequently made (whether during or after the period of indemnity) pursuant to such an intention to claim or arising from circumstances so notified shall be deemed to have been made at the date when such notice was given.

(6) The Company on behalf of the fund waives any rights of subrogation against any employee of the Practice save where those rights arise in connection with a dishonest or criminal act by that employee.

(7) Notices to the Company to be given hereunder shall be deemed to be properly made if given to the Company at its registered office or to such other person or body as the Society may from time to time determine.

(8) If the indemnified shall prefer any claim to Indemnity out of the fund knowing the same to be false or fraudulent as regards amount or otherwise the Indemnity shall become void only in respect of such fraudulent claim or that fraudulent part of an otherwise valid claim.