Subject to the conditions as set out in the Master Policy, every practising attorney in South Africa enjoys a level of professional indemnity cover with the AIIF. This cover is granted automatically to all attorneys falling within the definition of an insured in the AIIF Master Policy.
The professional indemnity insurance cover is granted on the terms set out in a Master Policy. The conditions set out in the Master Policy are applied to all insured attorneys. The policy covers attorneys (and their staff) in respect of claims arising out of the conduct of the profession. The amount of cover (limit of indemnity) and the deductible (excess payable) are determined by the number of partners/directors in the firm on the date that the cause of action arose. It must be noted that the limit of indemnity is granted to the firm (and not each practitioner individually) on an annual aggregate basis. In other words, the applicable limit of indemnity is the maximum amount of cover the firm will enjoy with the AIIF for the particular year. The AIIF insurance year runs from 1 July of each year to 30 June of the following year. The responsibility lies with attorneys to familiarise themselves with the content of the AIIF policy.
In the event that a claim falls within the exclusions listed in the AIIF Master Policy or the amount claimed exceeds the available limit of indemnity, the firm will face the possibility of bearing the claim (or part thereof) itself in the event that it does not have appropriate additional (‘top-up’) insurance in place.
Overview of the current AIIF policy as it stands. The attached Master Policy applies to the current insurance year. Each insurance year runs from 1 July to 30 June of the following year.