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Malaysian Bar Mandatory PII Scheme

The Professional Indemnity Insurance (“PII”) Scheme for the Malaysian Bar was introduced in 1992.  PII was made compulsory under Section 78A of the Legal Profession Act 1976.  The amendment in 1992 also sets out the provisions for the Bar Council to maintain a Mandatory PII Scheme.  Every advocate and solicitor practising in Peninsular Malaysia are insured under a single Master Policy with uniform coverage, before they can be issued their Sijil Annual and Practicing Certificate. 

The Mandatory PII Scheme ensures that insurance is available to all practitioners despite their claims history.  On behalf of Members, the Bar Council arranged for a Master Policy which indemnifies every advocate and solicitor who is permitted to practice.  There is cover within the terms of the Master Policy to provide indemnity in respect of claims made against a retired lawyer or a lawyer’s estate and legal representatives in the event of death.

The Malaysian Bar PII Scheme insures its Members against civil liability for claims arising out of the legal practice for work customarily and legitimately performed by lawyers in Malaysia which include damages payable to claimants including claimant’s costs and defence costs.  A specific mandatory limit will apply to each and every claim, upon exhaustion of the firm’s base excess.