Unraveling the Necessity of Professional Indemnity Insurance for an IIIO
With the requirements of operating as an International Insurance Intermediary Office (IIIO) continually evolving, it is imperative to examine one key question that often surfaces. That pivotal query is this: Does an IIIO require professional indemnity insurance? Well, to answer that question, we delve into the details specified under Regulation 14 of the IIIO Regulations. Taken together, their interpretation presents a comprehensive understanding.
Mandatory Procurement of Professional Indemnity Insurance
The guidelines are explicit: every IIIO, as stipulated in Regulation 14, must purchase and continuously maintain professional indemnity insurance coverage throughout its registration validity. This insurance cover is defined and elaborated upon in Schedule IV of the IIIO Regulations.
Accommodation for Newly Registered IIIOs
The regulation does offer some reprieve to newly registered IIIOs. According to the IIIO Regulations, the Authority, considering each case’s individual merits, may grant a newly registered IIIO an extension for obtaining its professional indemnity insurance policy. The breathing room offered is quite considerable, extending upto twelve months from the date of its certificate’s grant.
Compliance for Branch Offices
For IIIO establishments operating in a branch form, the same professional indemnity insurance obligations apply. These branch offices must fulfill the policy necessities defined at their head office level. This essentially translates into the fact that they must have an endorsement on their policy verifying that any liabilities, if incurred, resulting from operations at the IFSC branch office are bundled in the coverage scope of such an insurance policy.
A comprehensive understanding of professional indemnity insurance requirements and adherence to them is a crucial cornerstone for IIIOs given the authoritative specifications under the purview of Regulation 14 in the IIIO Regulations. Armed with this knowledge, IIIOs can ensure necessary protection measures for their professional practices.
