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Professional Indemnity Insurance (PII)
(e-Placement)
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By-Laws
PART II: BY-LAWS ON PROFESSIONAL CONDUCT AND PRACTICE
Section 510
Professional Indemnity Insurance
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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. |
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510.2 |
Members in public practice are required to purchase policies from
licensed insurance companies. |
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510.3 |
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(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. |
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(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. |
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(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. |
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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. |
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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 |
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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. |
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