IMEB 2.3.3 Minimum requirements for professional indemnity insurance policies

(1) A professional indemnity insurance policy taken out or renewed by a firm for this part must make provision for—
(a) cover in relation to claims for which the firm may be liable as a result of its conduct or the conduct of its employees and agents; and

Note Employee is defined in subrule (7).
(b) the minimum limits of indemnity per year in subrule (3); and
(c) excess as mentioned in subrules (5) and (6); and
(d) appropriate cover in relation to legal defence costs; and
(e) continuous cover for claims arising from work carried out from when the firm was authorised to conduct insurance mediation or captive insurance management in or from the QFC; and
(f) cover for awards made against the firm under the customer dispute resolution scheme.
Note Customer dispute resolution scheme is defined in the glossary.
(2) The firm must not take out professional indemnity insurance for this part that makes provision for the payment of fines imposed by the Regulatory Authority or the QFC Authority.
(3) For subrule (1) (b), the minimum limits of indemnity per year are—
(a) for a single claim — QR3.6 million; and
(b) in total, the greater of the following:
(i) QR5.4 million;
(ii) 10% of the firm's annual income.
(4) For subrule (1) (b), if a professional indemnity insurance policy provides cover to the firm and another entity (whether or not a firm), the firm must have the sole benefit of the relevant minimum limits of indemnity under subrule (3), irrespective of the amount of any claims for which any other entity named in the policy may be liable.
(5) For subrule (1) (c) and for a firm that is not permitted to hold client money or other client assets, the excess must not be more than the greater of the following:
(a) QR18,000;
(b) 1.5% of the firm's annual income.
Note Client money is defined in rule 1.2.9. Client assets is defined in subrule (7).
(6) For subrule (1) (c) and for a firm that is permitted to hold client money or other client assets, the excess must not be more than the greater of the following:
(a) QR36,000;
(b) 3% of the firm's annual income.
(7) In this rule:

annual income of a firm means the firm’s gross income (based on the firm’s audited financial statements of the previous year) less premiums from clients due to insurers.

client assets includes a document belonging to a client only if it has value, or can have value, in itself (for example, a bearer instrument).

Note Client is defined in the glossary.

employee, of a firm, includes any member of the firm's governing body.

Note Governing body is defined in the glossary.
Amended by QFCRA RM/2015-1 (as from 1st July 2015).
Amended by QFCRA RM/2020-1 (as from 15th August 2020)