New ruling means expert witnesses need to check their PII cover

For some 400 years, professionals called to give evidence in court as expert witnesses had been immune from any civil action being taken against them for the views they expressed. Not any more. In a historic ruling by the Supreme Court on 30 March 2011, that immunity was removed.

The judgement stemmed from a case involving a man who was injured in a motor accident. His defence lawyers had instructed a psychologist to appear as an expert witness and, during her testimony, she stated that the man had suffered Post Traumatic Stress Disorder (PTSD) as a result of the accident. The expert called by the defendants’ lawyers, however, argued that this was not the case and that the man was exaggerating his symptoms.

As is typical in such cases, the court ordered that the two experts should consult and produce a Joint Statement. Which they did. And the statement they prepared concluded that the man had not experienced PTSD after all. Clearly, this judgement was likely to have a significant effect on the damages the man was likely to receive and he took action against the expert witness his lawyers had instructed on the grounds that she had been negligent in signing the Joint Statement.

In this subsequent case, the judge ruled against the man and upheld the expert witness’s immunity. Although he did state that a superior court, with the power to effect such a decision, might conclude that there was a public policy justification for overruling his decision. Which is exactly what the Supreme Court did.

End of immunity for expert witnesses. And a cue for any professional who might be called to provide such a service to ensure that he or she has some robust professional indemnity insurance cover in place!

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Healthcare in the headlines again

Story in the Mirror Online today, headlined NHS told to cut tonsil, wisdom teeth and other "low value" ops to cut costs.

Well, I think we all knew that something like this would eventually happen - as hospitals are likely get more and more desperate for their share of money to carry out their business, the types of operation mentioned in the article (tonsillitis, cataract ops, hip replacements, knee joint repairs, ­treatments for wisdom teeth and varicose veins) would be subject to some form of *ahem* priority rethink.

Where could this leave ordinary folk like us though? I mean, I know plenty people who've had the wisdom tooth thing done- (I will spare you the graphic details except to say that one story in particular still makes go a bit queasy even though it was told to me over a decade ago!) - and believe me, if that's going on in your jaw, your brain will most certainly NOT be sending 'low priority' signals to the brain's pain centres.

While on the short term this could definitely be a time of fractious transition, in the longer term it might mean who knows what? We'll have to wait and see. In terms of people seeking affordable health insurance, there will almost certainly be an increase in uptake.

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A reminder that Professional Indemnity Insurance premiums are related to risk

As a general rule, most financial advisers would not recommend transferring pension funds from a defined benefit scheme to a defined contributions one. In the past, concerns over taking such a course of action have been expressed by both the Pensions Regulator and the FSA. But according to John Lawson of Standard Life, as reported in moneymarketing.co.uk, there can be advantages for certain people, particularly in terms of flexibility.

However, it can still be a risky think to do. That’s why providing advice in this area is only allowed if you hold the necessary qualifications. And why, even if you are skilled and fully competent, you’ll probably have to pay higher premiums for your professional indemnity insurance.

Looking for highly competitive professional indemnity insurance ? Call at 0333 3211 403.

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Who pays for the cost of Professional Indemnity Insurance in the end?

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Of course all businesses have to pass on their costs to their customers. But at what point does a general overhead, an insurance premium for example, become a specific cost that can no longer be absorbed in the overall margin?

Partly due to the seriousness of the economic position, a number of professions are seeing significant rises in their professional indemnity insurance premiums as the number and the size of claims rise dramatically. Many solicitors, surveyors and IFAs in particular are being badly hit. And for some, it’s a hit they’re no longer prepared to take.

As reported in moneymarketing.co.uk, Philip Milton of Philip J Milton & Company has made the point that some advisers will need to consider passing on a ‘vulnerability premium’ to protect themselves against the consequences of the kind of claim that in the past they probably wouldn’t have seen.

For an answer to your questions on professional indemnity insurance, call at 0333 3211 403.

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Professional indemnity. To disclose or not to disclose?

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In a recent article written by various contributors from Herbert Smith LLP and posted on lexology.com, a whole series of tips are offered on how businesses can best maximise their recoveries from any insurance claims they make. And one particular tip relates to professional indemnity insurance.

As the authors make clear, some things are cut and dried. If you’re involved in the construction of a tunnel or a bridge and it collapses, then you probably don’t need to be told that an occurrence like that is something you should disclose to your professional indemnity insurance. But what about the ‘grey’ areas? A mild concern is raised in the course of an informal discussion, perhaps. Is that something worthy of disclosure?

Courts have spent many hours arguing over questions like that. So the advice offered is to make sure you always comply strictly with the requirements of the policy, taking legal advice if necessary. Otherwise you may find that you’ve invalidated your professional indemnity insurance cover. Call at 0333 3211 403.

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Chartered accountants in India to get 100% Professional Indemnity Insurance cove

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Traditionally, few firms of Chartered Accountants in India have ever taken out professional indemnity insurance. Not only has it never been a legal requirement, the amount of cover per claim has been limited to just 25% of the aggregated policy limit by the state-owned general insurers. To many firms, self-insurance seemed to offer a better deal than paying what was effectively a four-fold premium.

Now however, a new professional indemnity insurance product has been launched by Tata AIG General Insurance Company. It has been designed specifically for Chartered Accountants and will offer them 100% cover for the first time. One feature, unusual from a UK perspective, is that, in the event of a claim, Tata AIG will appoint the lawyers to provide representation directly rather than simply reimbursing the cost.

To find the professional indemnity insurance you need, call 03333 211403.

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