Every practitioner, who is in possession of a valid Fidelity Fund Certificate, automatically enjoys a certain level of professional indemnity cover in terms of the LPIIF policy. (Please refer to the policy for the applicable limits of indemnity and deductibles). The LPIIF has one Master Policy applicable to all insured firms.
In previous years, insurance certificates were issued to firms. This was primarily done at the request of the financial institutions on whose panels the firms served. However, the LPIIF Board of Directors has decided that no insurance certificates will be issued with effect from the 2013/2014 insurance year. This decision and the reasons therefore have been communicated to the major financial institutions, the profession and Docomply.
A copy of the LPIIF policy is available on this website at click here In terms of the policy, the limit of indemnity and deductible of an insured is determined by the number of partners/directors in the firm at the time the cause of action arose. The LPIIF does not have records of:
- The practitioners who have either been issued with Fidelity Fund certificates or who are obliged to apply for such certificates;
- The names and/or number of practitioners practicing or the number of partners/directors in each firm.
This information is available from the regulators that issue Fidelity Fund Certificates to practitioners and keep records of the practitioners in each of their areas of jurisdiction. The LPIIF only deals with insureds when a claim is notified and indemnity applied for in terms of the policy.
The onus is on the practitioners to satisfy interested third parties that they are in possession of a valid Fidelity Fund Certificate.