Div 13Professional indemnity insurance scheme

Division 13—Professional indemnity insurance scheme 52—Professional indemnity insurance scheme (1) The Society may, with the approval of the Attorney-General, establish a scheme providing professional indemnity insurance, to an extent provided by the scheme, for the benefit of legal practitioners and law practices. (2) The scheme— (a) will operate for the benefit of a class, or classes, of legal practitioners or law practices defined in the scheme; (b) will provide for insurance indemnity partially under a master policy negotiated between the Society and insurers participating in the scheme and partially from a professional indemnity fund to be established, administered and applied in accordance with the scheme; (c) may provide for the determination and settlement of claims against legal practitioners or law practices covered by the scheme; (d) may impose on legal practitioners or law practices obligations to pay premiums, levies, fees or other charges (which may vary according to factors stipulated in the scheme); (e) may impose, or provide for the imposition of, civil or criminal sanctions or penalties against legal practitioners or law practices who fail to comply with their obligations under the scheme; (f) may confer discretionary powers on the Society in relation to the administration or enforcement of the scheme; (g) may make any other provision reasonably necessary for, or incidental to, the administration or enforcement of the scheme. (3) The scheme, and any amendment to the scheme made by the Society with the approval of the Attorney-General, have the force of law and are binding on— (a) the Society; (b) the legal practitioners and law practices covered by the scheme; (c) the insurers and other persons to whom the scheme applies. (4) The Society must keep a copy of the scheme and of any amendment to the scheme available for inspection at its public office and must, on request for a copy of the scheme or amendment and payment of a reasonable fee fixed by the Society, provide such a copy. legal practitioner includes— (a) a member of a faculty of law in a university; and (b) a person who has ceased to be a legal practitioner but who was a legal practitioner when a liability covered by the scheme arose; and (c) an interstate legal practitioner; professional indemnity insurance means insurance against— (a) civil liability arising in connection with legal practice (whether the liability arises from an act or omission on the part of the insured legal practitioner or some other person); (b) civil liability incurred by a legal practitioner or law practice in connection with the administration of a trust of which the practitioner is a trustee. 52AA—Professional indemnity insurance required by interstate practitioners etc (1) A prescribed practitioner or practice must not engage in legal practice in this jurisdiction unless there is in force approved professional indemnity insurance in respect of that practitioner or practice. Maximum penalty: (a) for an offence committed by an interstate legal practitioner—$10 000; (b) in any other case—$50 000. (2) If an interstate legal practitioner fails to comply with this section, the Supreme Court may, on application by the Attorney‑General or the Society, suspend the practitioner's right to practise the profession of the law in this State until this section is complied with. (3) If an incorporated legal practice fails to comply with this section, the Supreme Court may, on application by the Attorney‑General or the Society, suspend any legal practitioner director's right to practise the profession of the law in this State until this section is complied with. (4) The Supreme Court must give notice of a suspension imposed under this section to any regulatory authority that is authorised to seek or impose a corresponding suspension in a State in which the practitioner is admitted as a legal practitioner. approved professional indemnity insurance means insurance— (a) that has been approved by the Attorney‑General; or (b) that is of a class or kind that has been approved by the Attorney‑General; prescribed practitioner or practice means— (a) an interstate legal practitioner who— (i) establishes an office in this State; and (ii) if he or she were a local legal practitioner, would be covered by a scheme providing professional indemnity insurance; or (b) an incorporated legal practice that is not required to be insured under a scheme established under section 52. 52AAB—Professional indemnity insurance where no office established in this State If the professional indemnity insurance in force in respect of an interstate legal practitioner who engages in legal practice in this State but has not established an office in this State is not approved professional indemnity insurance (within the meaning of section 52AA), the interstate legal practitioner must disclose that fact to a client before he or she is retained by the client.