Mr. Faris Attrickie, General Manager, Technical Operations of SIC Insurance Company PLC., has highlighted the need for all professional institutions to have professional indemnity insurance policies under the new Insurance Act, 2021 (Act 1061).
Mr. Attrickie, using Section 216 of the Insurance Act 2021 (Act 1061), (1), to support his statement, iterated that “an employer of a professional person specified in the Second schedule shall insure and maintain an insurance under any qualifying professional indemnity insurance contract with a licensed insurer for the professional person”.
Shedding more light on the need for an employer to secure professional indemnity insurance policy, Mr. Attrickie stated that, any employer that acts contrary to subsection (1) of the Insurance Act commits an offence.
Owing to this, the General Managing stated that any employer found culpable is liable on summary convictions to a fine or a term of imprisonment or to both terms as specified in the first schedule.
Mr. Attrickie made clear this admonishment at the ‘End of Month Stakeholder Engagement and Workers Appreciation Day’ seminar, an initiative which creates a platform for state and non-state actors to address salient national issues.
Further explaining the terms and conditions under the Insurance Act, the General Manager stated that all indemnity insurance policies taken are subject to the Insurance Act 2021 (Act 1061), (1).
“If the employer or another person takes out and maintains two or more professional indemnity insurance contracts, the insurance contracts taken together shall comply with regulations with respect to the minimum amount of professional indemnity insurance required.”
Mr. Faris Attrickie
Citing examples of professions which are required to take this proposed insurance policy, Mr. Attrickie made reference to the medical professionals, as their work has to do with lives and the general health of people, hence the need to patronize professional indemnity insurance.
The need for professional indemnity insurance policies
Professional indemnity insurance is used if the companies and firms fail to provide services to their clients. The clients can claim for the loss due to the breach of service guaranteed by the company.
According to American International Group, Inc. (AIG), “professions like Accountants, Architects, Engineers, Lawyers and Insurance Brokers are highly regulated by local authorities and in many cases these professions are legally required to have professional liability insurance in place”.
Also, Lloyds bank Plc. disclosed that “as a professional, it’s difficult to imagine any of your clients being so unhappy with the service you provide that they’re prepared to sue you for damages”.
“Professional Indemnity Insurance, also known as indemnity insurance or PI, provides cover to protect you [professional] if claims are brought against you by a client. PI insurance can help to put mistakes right and cover any legal costs if a client alleges you have provided inadequate service or advice.”
Lloyds bank Plc.
Smartasset, a financial technology (fintech) company based in New York, also stated that “if you’re a doctor and you misdiagnose a patient’s illness which results in their condition being left untreated and worsening, they may be able to file a malpractice claim against you if they experienced financial losses”.
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