Today’s #FridayRead highlights compulsory Professional Indemnity Insurance under the new Insurance Act 2022 (Act 1061)
The Professional Indemnity Insurance was introduced by Act 1061 to provide indemnity to professionals for loss or damage caused to another person arising from the following circumstances:
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- Negligent act, error or omission, negligent misstatement or misrepresentation;
- Breach of duty of care;
- Dishonesty of employee of insured professional;
- Theft or loss of documents and data including the cost of replacing same;
- Legal and other costs connected with defending the claims mentioned above; and
- The cost of investigating and settling such a claim.
It is worthy to note that the class of persons or professional required to be indemnify under an insurance include:
Lawyers;
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- Medical Doctors;
- Accountant;
- Insurance Practitioners;
- Financial and Investment Analysts; and
- Any other profession specified by Regulations.
It is relevant to note that the failure of a professional to be indemnified under an insurance is an offence punishable on summary conviction to a fine not less than GHS 24,000.00 or a term of imprisonment not less than one (1) year and not more than five (5) years.