Accountants Act · 2023 Revised Edition · Part · Accounting Corporations, Accounting Firms and Accounting Limited Liability Partnerships
33. Professional indemnity insurance
Official textFrom Attorney General's Chambers, unchanged
Every accounting corporation and every accounting Limited
accounting corporation
“accounting corporation” means a company approved as an accounting corporation under section 20;
Liability Partnership registered under this Act shall be covered by professional indemnity insurance of not less than one of the following amounts, whichever is the highest —
professional indemnity insurance
“professional indemnity insurance” includes insurance indemnifying a public accountant, an accounting corporation, an accounting firm or an accounting Limited Liability Partnership against liability to compensate a third party who has sustained financial loss or any other damage or injury due to a breach of professional duty or to any professional negligence on the part of such public accountant, accounting corporation, accounting firm or accounting Limited Liability Partnership, as the case may be (including any such negligence by any director of such accounting corporation or any partner of such accounting Limited Liability Partnership), or fraud or dishonesty;
$250,000;
a sum equal to the total of $150,000 for every corporate practitioner in the accounting corporation or accounting Limited
Liability Partnership; or
where applicable, a sum equal to two and one-half times the gross income of the accounting corporation or accounting Limited
Liability Partnership in the last completed financial year of the accounting corporation or accounting Limited Liability Partnership, subject to a maximum of $10,000,000.
The Minister may, with the approval of His Majesty the Sultan and Yang Di-Pertuan, by regulations vary the amount of coverage under a professional indemnity insurance required by subsection (1).
Terms defined in s 2
accounting corporation
Defined · s 2“accounting corporation” means a company approved as an accounting corporation under section 20;
accounting limited liability partnership
Defined · s 2“accounting limited liability partnership” means a limited liability partnership approved as an accounting limited liability partnership under section 22;
professional indemnity insurance
Defined · s 2“professional indemnity insurance” includes insurance indemnifying a public accountant, an accounting corporation, an accounting firm or an accounting Limited Liability Partnership against liability to compensate a third party who has sustained financial loss or any other damage or injury due to a breach of professional duty or to any professional negligence on the part of such public accountant, accounting corporation, accounting firm or accounting Limited Liability Partnership, as the case may be (including any such negligence by any director of such accounting corporation or any partner of such accounting Limited Liability Partnership), or fraud or dishonesty;
Part
Practice Monitoring Programme
Part
Disciplinary Proceedings
Part