Admissions – July 2013
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to the profession ADMISSIONS Issue 1/2 2013 SPONSORED BY ADVERTORIAL NEED FOR TOP-UP COVER surance comes to the fore. If a though commercial banks, for exam- law firm has taken out addition- ple, will insist that any practitioner al or ‘top-up’ PI cover, then the who sits on their panel (and to whom top-up cover will ensure that any they refer work) must have a predeter- legitimate claim against the law mined level of cover. This level of cover firm is settled (up to the limit of is often way above the base levels of- the additional cover). It is im- fered through the AIIF. PI top-up cover portant to note here that our indemnity limits are, in this instance, top-up insurance policy carries determined as a commercial decision no secondary excess payable by the practitioners and the higher the in the event of a claim that limit, the higher the value of work that exceeds the AIIF base cover. the banks will refer to them. Another This can be a saving to prac- factor for consideration is the type titioners of anything from of work that practitioners do. A look R 15 000 to R 150 000. Our at recent claim trends indicates that extensive market research conveyancing and Road Accident Fund has revealed that a large pro- prescription matters are currently the portion of legal practitioners most common. are under-insured. Firms that do these lines of work are Michael-John Damant, director at Professional indemnity top- statistically seen to be more at risk and Shackleton Risk Management up insurance is, as the name thus we recommend to these clients suggests, a secondary cover that they take out higher indemnity that sits over and above the limits to mitigate this risk. Other fac- cover automatically provided by the tors to consider are the firm’s claims’ he Attorneys Fidelity Fund AIIF. As with the base level of cover, PI history and the average size of the is a fund that through its top-up insurance protects an attorney matter that a firm works on. These non-profit arm, the Attor- from claims arising out of his or her are key indicators in determining an neys Insurance Indemnity professional negligence. Where a claim appropriate level of cover. Shackleton Fund (AIIF), supplies all against an attorney arises as a result Risk Management is conscious of af- practitioners in South Af- of an attorney’s negligent handling of fordability issues and will assist by of- Trica with a base layer of professional a matter, the insurer (insurance com- fering a range of limits to ensure that indemnity (PI) insurance cover of be- pany/underwriter) settles the claim on adequate cover and affordable premi- tween R 1 562 500 and R 3 1250 000. behalf of the insured (the law firm that ums are aligned. The AIIF is in place to settle claims has taken out PI insurance) and the in- In addition to the top-up PI insur- over and above the mandatory pri- sured is relieved of having to pay out ance, we are also able to offer two other mary excess of between R 20 000 and his or her client who suffered a loss as products. The first is fidelity guarantee R 315 000. The amount of cover and a result of the attorney’s negligence. insurance, which protects practitioners the excess payable will depend on the We have noticed a misconception in from theft of their business account number of directors/partners in a law the market where practitioners be- funds or physical assets within a law firm and the nature of the legal work lieve that after a PI claim is paid out, firm by its staff members. undertaken by that firm. This cover is the insurer may then have recourse The second is misappropriation of in place to protect practitioners from against the practitioners themselves. trust fund insurance, which protects liability arising as a result of their neg- This is not the case, as the cover is an practitioners from theft of their trust ligent acts, errors or omissions. Once indemnity policy designed to protect fund monies by dishonest staff mem- the limited cover provided by the AIIF the practitioner. There is no further re- bers or partners. has been depleted, the directors/part- course against the practitioner. Practi- We would be delighted to assist you ners of a law firm become jointly and tioners are urged to seriously consider with all your legal insurance needs. severally liable for any additional li- this top-up insurance because, when a Please contact us at tel: (011) 784 5373, ability in excess of the cover provided claim arises, it can be catastrophic for e-mail us at [email protected] or visit by the AIIF. the partners or directors of the firm. www.shackletonrisk.co.za to find out Our experience in the market has One of the hardest questions that we more. shown a steep upward trend in the get asked by our clients is: ‘What is the number of professional negligence correct level of indemnity to take out?’ Michael-John claims that are being laid against prac- Ultimately, that is a decision for titioners and this is where top-up in- the partners or directors to make, al- Damant SUPPLEMENT TO DE REBUS, JULY 2013 3 Sponsored by Fourie, EH LLB, Mostert & Bosman, Cape Town, 18-12-2012. Frittelli, DW LLB, Schneider Galloon Reef & Co, Cape Town, 1-2-2013. Cape Law Society Fuller, SG BSocSci LLB, ENS, Cape Town, 1-2-2013. Gabula, AN BA LLB, State Attorney, Kimberley, 14-3-2013. Gallo, EE LLB, Knowles Husain Lindsay Inc, Cape Town, 2-11-2012. ADMITTED ATTORNEYS George, JG LLB, Goldberg & De Villiers Inc, Port Elizabeth, 7-3-2013. Abduroaf, M LLB, AJ Hamman & Associates, Mitchell’s Plain, 7-12-2012. Gerstner, T LLB, Le Roux Lamprecht, George, 1-2-2013. Abrahams, CE LLB, Brown Braude & Vlok Inc, Port Elizabeth, 28-2-2013. Gertze, RT LLB, Haupt & Van Zyl, Cape Town, 1-2-2013. Ackerman, ARP LLB, Van Aswegen Attorneys, Cape Town, 1-2-2013. Gilmour, K BSc LLB, Webber Wentzel, Cape Town, 1-2-2013. Adams, GL LLB, Bax Kaplan Inc, East London, 16-8-2012. Gomes, ALDF BCom LLB, Burmeister De Lange Soni Inc, Port Elizabeth, Adams, JP BA LLB, Abrahams Kiewitz, Cape Town, 2-11-2012. 18-4-2013. Adams, L LLB, Webber Wentzel, Cape Town, 1-2-2013. Gqoboka, MA LLB, Legal Aid South Africa, Queenstown, 14-3-2013. Ahmed, E LLB, Schrueder Inc, Cape Town, 3-8-2012. Grerber, G LLB, De Klerk & Van Gend Inc, Cape Town, 14-9-2012. Ainsile, BC LLB, Sellers Attorneys, East London, 11-10-2012. Greyvensteyn, D LLB, Gijsbers Attorneys, Cape Town, 7-12-2012. Altenkirch, I LLB, Gravett Schoeman Van Rensburg & Moodley Inc, East Griffin, G LLB, Millers Inc, George, 23-11-2012. London, 7-3-2013. Grobler, NJ BA LLB, MacGregor Stanford Kruger Inc, Cape Town, 1-2- Augustin, H BCom LLB, 7-12-2012. 2013. Barends, CM BCom LLB, Laäs & Scholtz Inc, Cape Town, 7-12-2012. Groenewald, C BCom (Hons) LLB, Goldberg & De Villiers Inc, Port Eliza- Bath, A LLB, Myburgh & Associates, Cape Town, 1-3-2013. beth, 10-1-2013. Bekwa, TSJ LLB, Legal Aid South Africa, Port Elizabeth, 17-1-2013. Gwaza, L LLB, Mgxaji Inc, Mthatha, 8-8-2012. Bence, S LLB, Boqwana Ntlabezo Inc, Port Elizabeth, 11-10-2012. Harmse, E LLB, Legal Aid South Africa, Stellenbosch, 1-3-2013. Beviss-Challinor, AJ BA LLB, Morkel & De Villiers Inc, Cape Town, 1-2- Hattingh, K BSocSci LLB, Drake Flemmer & Orsmond Inc, East London, 2013. 28-2-2013. Bezuidenhout, DP LLB, Richard Lawrence Attorneys, Port Elizabeth, Hayward, TK BCom LLB, C&A Friedlander Inc, Cape Town, 1-3-2013. 28-6-2012. Hendricks, Z LLB, University of the Western Cape Legal Aid Clinic, Bezuidt, LL LLM, Legal Aid South Africa, Kimberley, 21-9-2012. Cape Town, 7-12-2012. Boonzaier, MA LLB LLM, Ashman Attorneys, Cape Town, 1-3-2013. Herbert, R LLB, Malan Lourens Lemmer Viljoen Inc, Strand, 1-2-2013. Booysen, A LLB, Booysen-MacLeod Attorneys, Kimberley, 8-2-2013. Hess, B BCom LLB, Cluver Markotter Inc, Stellenbosch, 1-2-2013. Booysen, J LLB, Legal Aid South Africa, Upington, 6-2-2013. Heunis, M LLB, Gerhard Stoltz Inc, East London, 10-11-2011. Bosman, KS BA LLB, Ward Ward & Pienaar, Cape Town, 1-3-2013. Hockly, TL BA LLB, Bernardt Vukic Potash & Getz Inc, Cape Town, Bossenger, SJ LLB, Avenant Rappoport Inc, Cape Town, 1-3-2013. 1-2-2013. Botha, D LLB, De Vries Shields Chiat, Cape Town, 7-12-2012. Hoedemaker, CC LLB, Legal Aid South Africa, Cape Town, 7-12-2012. Botha, GE BProc, André Potgieter & Associates, Kimberley, 2-11-2012. Hofmeyr, CJ LLB, HWD Attorneys, Cape Town, 1-2-2013. Botha, M LLM, Marais Hoon Attorneys, Cape Town, 1-2-2013. Hofmeyr, M BCom LLB, Smith Tabata Buchanan Boyes Inc, Cape Town, Botma, NB LLB, Annali Erasmus Inc, Uitenhage, 14-3-2013. 1-2-2013. Bovijn, S BAcc MCom LLB, ENS, Cape Town, 1-2-2013. Horlin, GA BCom LLB, Scheibert & Associates Inc, Cape Town, 7-12- Brand, HM BCom LLB, Fourie Basson & Veldtman, Parow, 1-2-2013. 2012. Brink, VV LLB, Schneider Galloon Reef & Co, Cape Town, 1-2-2013. Hulana, LM BSc LLB, Legal Aid South Africa, Queenstown, 29-11-2012. Broodryk, M LLM, Joubert Attorneys, Strand, 1-2-2013. Isaacs, MA LLB, Lange Carr & Wessels Inc, Upington, 22-3-2013. Brown, CDC BCom LLB, Abrahams & Gross Inc, Cape Town, 1-2-2013.