1964_SOLICITORS_(PROFESSIONAL_INDEMNITY_AMENDMENT)_RULES — Page 11

1986 Ed.]

Solicitors (Professional Indemnity) (Amendment) Rules

[CAP. 159

0 11

the Basic Premium but shall be calculated in accordance with the formula set out in paragraph 3(1)(a)(ii) by multiplying the Basic Premium by the appropriate factor established pursuant to sub-paragraph (c) below.

(b) For the purposes of sub-paragraph (c) below, claims paid during such

period-

(i) shall not include-

(aa) any amount in excess of HK$5,000,000 in respect of any one

claim;

(bb) the amount of any claim paid by Insurers under the Former Master Policy on behalf of the Insured prior to the 1 October 1986 the full amount of which is paid by the Insured to Authorized Insurers under the Master Policies prior to 1 October 1986 pro- vided that this exclusion shall only apply in respect of claims paid by Insurers under the Former Master Policy (and repaid by the Insured) which do not exceed the aggregate of 50% of the premiums paid by the Insured in respect of compulsory profes- sional indemnity insurance in respect of the four Insurance Years prior to 1 October 1986;

(cc) the amount of any deductible paid by the Insured;

(dd) the legal costs and disbursements incurred in successfully defend-

ing a claim made against the Insured;

(ee) the legal costs and disbursements (including defence and claim- ants' costs) paid in respect of a successful claim made against the Insured under the Former Master Policy; and

(f) the amount of any claim paid under or in respect of a policy of insurance other than the Former Master Policy or the Master Policies or Master Policy.

(ii) shall include all legal costs and disbursements (including defence and claimants' costs) which are paid in respect of a successful claim made against the Insured under the Professional Indemnity Insurance Scheme.

(c) (1) If claims so paid exceed 0% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 50% of premiums so paid, a factor of 1.06 shall be applied to the premium;

(ii) if claims so paid exceed 50% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 100% of premiums so paid, a factor of 1.13 shall be applied to the premium;

(iii) if claims so paid exceed 100% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 200% of premiums so paid, a factor of 1.33 shall be applied to the premium;

(iv) if claims so paid exceed 200% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 300% of premiums so paid, a factor of 1.53 shall be applied to the premium;

(v) if claims so paid exceed 300% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 400% of premiums so paid, a factor of 1.78 shall be applied to the premium;

(vi) if claims so paid exceed 400% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 500% of premiums so paid, a factor of 1.98 shall be applied to the premium;

(vii) if claims so paid exceed 500% of the total amount of premiums paid in the four years preceding the Period of Insurance but do not exceed 600% of premiums so paid, a factor of 2.18 shall be applied to the premium;

[Subsidiary]