B210.1 – B210.6 Professional Indemnity Insurance
Every member in public practice is required to ensure that his or her firm carriesand maintains a policy of professional indemnity insurance.
Members in public practice are required to purchase policies from licensed insurance companies.
- Every member in public practice must maintain a policy of professional indemnity insurance with a minimum coverage of Ringgit Malaysia Two Hundred Fifty Thousand (RM250,000.00), upon commencement of public practice.
Section B210.3(1) was amended on 29 March 2012;
effective 1 July 2012
- 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.
- 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.
Section B210.3(3) was amended on 29 May 2012;
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 Two Hundred Fifty Thousand (RM250,000.00) each, for himself or herself in each of these firms
Amended on 29 March 2012;
with effect from 1 July 2012
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 other Committee so designated by the Council must be satisfied that the compound firm has shown that together, they comply with Section B210.4 above
Amended on 29 May 2012;
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.