THE NEED FOR PROFESSIONAL INDEMNITY INSURANCE
PROPOSAL FORM Proposal Form Policy Highligh.pdf PROPOSAL FORM RENEWAL Renewal Proposal Form.pdf

 INTRODUCTION

The Malaysian Institute of Accountants (MIA) has appointed Marsh Insurance Brokers (Malaysia) Sdn Bhd as its recommended broker and consultant for the Professional Indemnity Insurance Scheme with effect from 1st July 2005.

Under the provisions of the MIA By-Laws (On Professional Ethics, Conduct and Practice) Section 510 requires every MIA member in public practice to obtain a policy of Professional Indemnity Insurance with a minimum coverage of RM100.000 for each firm through which that member practices upon commencement of public practice.

Professional Indemnity Insurance provides clients with reasonable reassurance when dealing with members in public practice. This sense of reassurance stems as much as from the confidence in the level of Professional Indemnity Insurance as with the maintenance of professional integrity and competence.

 THE PROFESSIONAL INDEMNITY INSURANCE SCHEME

The Scheme is underwritten by ACE Synergy Insurance Berhad - “ACE Insurance” and will consist of:

  1. An individual policy issued to each firm with the terms of coverage approved by the MIA

  2. Insurance will be provided to all members who are allowed to practice by the MIA. Practitioner having claims experience in the last 3 years will be subjected to further underwriting review

  3. The Scheme provides cover from the minimum mandatory limit of indemnity of RM100,000 for a one member/partner practice moving each tier until RM500,000. From there on, the tier moves up by RM250,000 per tier up until RM1,000,000. Thereafter, each following tier moves up by RM500,000 until RM5,000,000

  4. The number of partners in a firm determines the mandatory limit of indemnity

  5. Minimum premium RM350 to be applied.

  6. Deductibles will be determined based on the gross fee band that is closest to the last Financial Year Gross Fee as will be declared in the proposal form

 COVERAGE

  1. Coverage applies to civil liability occuring in Malaysia and any legal proceedings in Malaysian court and to any proceedings in Malaysia for the enforcement of any award or judgment secured in any foreign jurisdiction except USA/Canada

  2. Full retroactive date (date of firm’s establishment)

  3. Defense costs shall be payable in addition to the limit of indemnity up to and not exceeding 20% and in the aggregate of the limit of indemnity

  4. Limit of liability for pro bono services is RM250,000

  5. Loss of Documents Extension

  6. Libel and Slander Extension

  7. Insolvency Work Extension

  8. Contractors Extension

  9. 30 days automatic cover for newly created or acquired entity or subsidiary extension

  10. Estate and Legal Representatives Extension

  11. Intellectual Property Extension

  12. Run Off cover Insured Entity or Subsidiary Extension

 CONDITIONS

  1. Must be a MIA member and holder of a Practising Certificate issued by MIA.

  2. A member in public practice shall maintain a policy of Professional Indemnity Insurance (PII) with a minimum coverage of RM100, 000.00 immediately upon commencement of public practice.

  3. 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 RM100,000.00 each, for himself or herself in each of these firms.

 ACE SYNERGY INSURANCE BERHAD

The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients.

Headed by ACE Limited, a component of the Standard and Poor’s 500 stock index, the A+ financial strength rating by both Standard & Poor’s and AM Best are indicative of ACE’s strong capital base and financial stability; key attributes in the business of risk. With a history dating back to 1792, the ACE Group conducts its business on a worldwidebasis with operating subsidiaries in more than 50 countries.

In Malaysia, ACE is represented by ACE Synergy Insurance Berhad (ACE Insurance Malaysia) and has been in operations since 1948. ACE Insurance Malaysia is a joint-venture entity between ACE Limited and Advance Synergy Berhad (a Bursa Malaysia listed company) with ACE holding the controlling stake of 51%. The company offers a broad range of general insurance products through agents, brokers, direct marketing and telemarketing.

ACE Insurance Malaysia has a strong reputation in underwriting large and specialized risks in commercial and industrial projects that require high levels of expertise and capacity. It is a leader in the innovative distribution of Accident & Health products via Direct Marketing and Telemarketing.

One of ACE Insurance Malaysia’s forte is its capacity and expertise in underwriting Financial Lines insurance products such as Professional Indemnity Insurance, Directors and Officers Liability insurance and insurance products for Financial Institutions.

For more information, log on to www.aceinsurance.com.my

 MARSH INSURANCE BROKERS (M) SDN BHD

Marsh is the world’s number one risk and insurance specialist. In Malaysia, we have been servicing a mix of global and local commercial business since 1982 and are ranked among the country’s top three brokers. Marsh’s global strength means we have the capabilities and resources to respond to our clients’ requirements for increasingly sophisticated advice on all forms of risk and insurance services.

MMC is a global professional services firm with annual revenues of approximately $12 billion. It is the parent company of Marsh, the world’s leading risk and insurance services firm; Guy Carpenter, the world’s leading risk and reinsurance specialist; Kroll, the world’s leading risk consulting company; and Mercer a major global provider of human resource and specialty consulting services. Approximately 55,000 employees provide analysis, advice and transactional capabilities to clients in over 100 countries.

Marsh Malaysia’s Financial and Professional (FINPRO) Practice is a team of more than 950 professionals worldwide who specialize in financial and professional insurance coverage. The team has a proven track record of generating new ideas that set industry standards. Our services encompass development and placement of specialist insurance products including:

• Professional Indemnity (PI)

• Directors and Officers Liability (D&O)

• Errors and Ommissions Coverage (E&O)

• Banker Blankets Bonds (BBB)

• Multimedia Liability

In addition to FINPRO practices, we also have other specialized practices which include Power & Utilities, Marine & Energy, and Employee Benefit.

For more information, log on to www.marsh.com

For more information, contact our representatives at:

Gunenthiran Gunaratnam
Tel: 03-2161 3455 ext 156
Gunenthiran.Gunaratnam@marsh.com

Michelle Chung
Tel: 03-2161 3455 ext 135
Michelle.Chung@marsh.com

Ikhmal Hadi Ibrahim
Tel: 03-2161 3455 ext 104
IkhmalHadi.Ibrahim@marsh.com

Lee Mei Li
Tel: 03-2161 3455 ext 188
Meili.Lee@marsh.com

 MARSH INSURANCE BROKERS (MALAYSIA) SDN BHD
19th Floor, West Block, Wisma Selangor Dredging, 142-C, Jalan Ampang, 50450 Kuala Lumpur. Tel: 03-2161 3455, Fax: 03-2161 2230