PART II: BY-LAWS ON PROFESSIONAL CONDUCT AND PRACTICE

Section 510 Professional Indemnity Insurance
510.1

Every member in public practice is required to ensure that his or her firm carries and maintains a policy of professional indemnity insurance.
510.2

Members in public practice are required to purchase policies from licensed insurance companies.
510.3
(1)

Every member in public practice must maintain a policy of professional indemnity insurance with a minimum coverage of Ringgit Malaysia One Hundred Thousand (RM100,000.00), upon commencement of public practice.
(2)

Proof of such coverage is required for the purpose of the annual renewal of the member’s practising certificate pursuant to Rule 9 of the Malaysian Institute of Accountants (Membership and Council) Rules 2001.
(3)

The Membership Affairs Committee of the Council or any other Committee so delegated by the Council for this purpose, may reject the application of any professional accountant for the renewal of the practising certificate if there is non-compliance with the requirements of Rule 9 of the Malaysian Institute of Accountants (Membership and Council) Rules 2001 or with the above requirement without proper excuse. Any professional accountant aggrieved with such a decision, may appeal to the Council whose decision on the same is final.
510.4

Where a member in public practice carries on practice under more than one firm, that member is required to have separate policies of professional indemnity insurance with a minimum coverage of Ringgit Malaysia One Hundred Thousand (RM100,000.00) each, for himself or herself in each of these firms.
510.5

Where members choose to practice as a compound firm (herein defined as a mixture of firms as well as body corporate recognised by the Institute as practising under a group), one of the member within the compound firm can be nominated to arrange for the insurance need of the compound firm under one single policy. Any Committee so designated by the Council must be satisfied that the compound firm has shown that together, they comply with Section 510.4 above
510.6

All members with practising certificates should satisfy themselves that they or their firm (including the compound firm) have suitable arrangements in place to comply with the By-Laws on the professional indemnity insurance of the Institute at all times.

Inserted 31 July 2008; With immediate effect.