Competition and choice – update
professional indemnity insurance for solicitors
29 May 2024
Note: this information was posted prior to the NSW Court of Appeal handing down their judgment reasoning on 9 August 2024. Please click here for an update.
In October 2022, ABC Insurance (ABC) approached the Attorney General of NSW seeking approval for its professional indemnity (PI) insurance policy for the $2 million cover required for a practising certificate.
Even though ABC’s policy offers superior coverage and is very cost-competitive, and despite the extended period of time which has elapsed, approval has not yet been received.
ABC obtained legal advice from, inter alia, barristers Bret Walker SC and Sean Baron Levi that ABC’s policy was an approved insurance policy under Legal Profession Uniform Law (LPUL).
In January 2024, ABC approached the Law Society of NSW seeking its co-operation in relation to the issuance of practising certificates and requesting that ABC be treated with competitive neutrality vis à vis the Law Society’s wholly owned subsidiary Lawcover Insurance Pty Ltd.
In late February the Law Society advised its members that it would not issue practising certificates based on ABC’s policy and commenced proceedings against the Attorney General.
On 23 April, the NSW Court of Appeal handed down orders while reserving its reasons for judgment.
The declaratory relief claimed by the Law Society, and the delay in obtaining the approval of the Attorney General, has resulted in the continuation of Lawcover Insurance’s monopoly in the provision of PI insurance for the majority of solicitors in NSW.
We are strenuously pursuing every avenue to address this unfortunate situation and to introduce competition and choice.
More information
For additional background information refer to the Recent Notices or click here.
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