INTRODUCTION

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Every professional takes great pride in his work and strives to do his best but accidents are unexpected. An Inadvertant error in professional services may cause severe financial impact.

Professional Indemnity Insurance is meant to cushion the impact of such losses by providing protection to the professional.

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

The Malaysian Institute of Accountants (MIA) has appointed Marsh Insurance Brokers (Malaysia) Sdn Bhd as the insurance broker and consultant with regards to the MIA Professional Indemnity Insurance Scheme (PII) with effect from 1st July 2005. The PII Scheme is underwritten by ACE Synergy Insurance Berhad (ACE Insurance).

E-PLACEMENT

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To further enhance the delivery of quality products and exceptional services to the members of MIA, Ace Insurance, the underwriter of the scheme has specially designed an online web based application exclusively for the members. The e-placement is a technology framework linking the applicants, broker, and underwriter on an electronic platform. The e-placement allows members to fill up proposals, obtain insurance quotation, issue the certificate of insurance / policy and at the same time make payment on line in the comfort of their office.

MIA members have been automatically registered as a user for this electronic online solution. An email with login ID will be sent to each individual member and in order to activate the account, members are required to click on the link provided. Thereafter, members could continue to purchase the professional indemnity insurance cover online.

THE MIA PROFESSIONAL INDEMNITY INSURANCE SCHEME

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Features of the scheme:

	The Scheme provides cover from the minimum mandatory limit of indemnity of RM100,000 for a member/partner practice up to RM500,000.
	The number of members in public practice a firm determines the mandatory limit of indemnity.
	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.
	Very competitive premiums which start off as low as RM341.15 by using credit card.

THE COVERAGE OF THE PROFESSIONAL INDEMNITY INSURANCE

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	Broad Insuring Clause covers any Claim for civil liability in the conduct of the provision of professional services or advice customary to the profession of accountants in Malaysia.
	Cover includes Pro Bono Services.
	Full retroactive cover (from date of firm’s establishment).
	Defense cost in addition to the limit of the indemnity up to an aggregate amount not exceeding 20% of the limit of indemnity specified in the Certificate of Insurance.
	Covers vicarious liability for any consultants, contractors, subcontractors and agents.
	Covers defamation.
	Covers intellectual property infringement.
	Covers liability arising from participation in joint ventures.
	Covers loss of document.
	Cover for fraud and dishonesty of principals and employees, until admission, judgements or  adjudication.
	Cover for principals’ previous businesses in the same profession (fully retroactive).
	Automatically covers newly acquired or created subsidiaries for 30 days.
	Covers run-off for Insured firms that have been merged, acquired or ceased.
	Continuous cover if continuously insured with ACE Insurance
	Covers cost of Legal representation at Inquiries.

ABOUT ACE

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ACE Synergy Insurance Berhad (ACE Insurance) is a member of the ACE Group of Companies®, a global leader in insurance and reinsurance. ACE Limited is the Swiss-incorporated holding company of the ACE Group of Companies with A+ financial strength rating by both Standard & Poor’s and A.M. Best. This rating is 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 members of the ACE Group have offices in more than 50 countries and a strong presence in Asia Pacific.

ACE in Malaysia provides retail, middle market and corporate general insurance services. The company has a strong reputation in underwriting large and specialized risks in commercial and industrial projects that require high levels of risk management expertise and capacity. In addition, ACE Malaysia is a leader in the innovative distribution of Accident & Health products via Direct Marketing and Telemarketing.

ABOUT MARSH INSURANCE BROKERS (M) SDN BHD

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As the largest global insurance broking and risk advisory firm, Marsh has been servicing clients in Malaysia since 1982. Marsh Insurance Brokers (Malaysia) Sdn Bhd, a joint venture between Marsh and Zulayang Sdn Bhd, provides a comprehensive range of insurance and risk management services for virtually every type of industry and profession throughout Malaysia. Marsh has over 100 professional staff in Malaysia dedicated to creating and implementing innovative risk management and insurance solutions to help clients find the upside in risk.

Marsh, the world's leading insurance broker and risk adviser, has 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with more than 55,000 employees and annual revenue exceeding $11 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm. MMC’s stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC’s Web Site is www.mmc.com. Marsh’s Web site is www.marsh.com.

Marsh has unparalleled experience in servicing a wide variety of professions in Asia. Its Financial and Professional Practice (FINPRO) has a much-envied track record for finding innovative and cost-effective solutions to the risks financial institutions and professionals face. In addition to program design and placement, we provide advisory services such as claims advocacy, benchmarking, and industry trend analysis. Marsh provides support throughout the lifecycle, from understanding risk, program design, ongoing support, claims advocacy and renewal. Marsh understands that arranging insurance is only part of the picture. We also provide a high level risk profile assessment and gap analysis for management to make informed decisions.

Management and practitioners in these industries face substantial risks to their personal assets, as the world becomes more litigious. For these risks, Marsh offers unrivalled advice and broking services for the following range of special liability insurance solutions:
 

	Association liability
	Crime
	Defamation
	Directors’ & Officers’ liability
	Employment practices liability
	Errors and omissions
	information technology insurance
	Investment managersinsurance
	Medical malpractice
	Professional indemnity
	Prospectus liability
	Trustees' liability

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