Only Legal practitioners are entitled to indemnity in terms of the scheme policy as third parties do not have any rights vis a vis the insurers (see clause 6.8 of the policy). If you are aware of an actual claim or a potential claim against you, please note that:
- It is necessary to refer your client to other attorneys as you are now faced with a conflict of interest. No admissions of liability, repudiations or negotiations should be made, as you would be in breach of the policy.
- You need to notify the insurers as soon as you become aware of an actual or potential claim. (Written notification is required and all letters of demand, summonses etc. should be forwarded immediately to the insurers (for Att: Zodwa Mbatha)
- Upon receipt of written notification, we will allocate the claim to a Legal Adviser and open a file. A claim form requiring further information will be forwarded to you. (Indemnity is conditional upon the claim form being properly completed and returned to the insurers).
- If a letter of demand or summons has been served, the Legal Adviser (who is an admitted attorney with many years of experience in practice) may request from the other side that proceedings be held in abeyance to conduct an internal investigation.
- The Legal Adviser will then request a complete copy of your file of papers in order to investigate the claim (it is therefore essential that a copy be retained). A decision will then be made as to whether the claim should be settled or defended. If defended, the claim will be referred to a panel attorney of the scheme insurers.