INSURANCE PROTECTION FOR CA FIRMS

Insurance Protection
An Insurance Protection for Members in practice & CA
Firms of ICAI...
An Initiative of the Committee for Capacity Building
of CA Firms and Small & Medium Practitioners, ICAI...
The Committee for Capacity Building of CA Firms
and Small & Medium Practitioners (CCBCAF &
SMP) of ICAI has arranged insurance protection for
members in practice/firms in the form of specially
designed professional indemnity insurance at a
reasonable premium i.e. 85% discount in market
rate. The scheme has become effective from 12th
March, 2013 for the Members in practice/ Firms
of the ICAI.
Scope
The policy covers all sums which the insured
professional becomes legally liable to pay as damages
to third party in respect of any error and/or omission on
his/her part committed whilst rendering professional
service. Legal cost and expenses incurred in defense
of the case, with the prior consent of the insurance
company, are also payable, subject to the overall limit
of indemnity selected.
Only civil liability claims are covered. Any liability
arising out of any criminal act or act committed in
violation of any law or ordinance is not covered.
Eligibility:
Chartered Accountants, individual/jointly or
Proprietorship Concern or a Partnership Firm / Partnership
The applicants/firms should not have been
subjected to disciplinary action by the Institute.
Premium Rates:
For Individual Members in Practice:
For SI of R10 lacs, the premium proposed is R1000/-
(1:1), R803/- (1:2), R 705/- (1:3) and R600/- (1:4).
Ratios indicate relationship between AOA and AOY
Additional: Per Capita for named professional
employee - R100
Excess: 1/2% of Any One Year Limit subject to
minimum R5,000/- and maximum of R 1 Lac. (as per
Market Agreement) For higher limits.
For Chartered Account Firm:
The premium of 0.10% shall be as per rates for
Individual Chartered Accountants and shall be applied
on the AOY limit chosen. All named professionals
shall be charged R100/- extra over and above the basic
premium.
For Example: If the CA firm chooses a Sum Insured
of 2 Crore the Premium rate of 0.10% is to be applied
on the AOY limit and each professional (including
partners) have to be charged R100/- each. For example
a CA firm with 20 professionals including 9 partners
will pay R20, 000/- plus 20X R100 totalling to R22,
000/-. This would be on 1:1 ratio. If the ratio is 1:2,
the Premium rate would be .08%, if the ratio is 1:3, the
Premium rate would be .07% and if the ratio is 1:4, the
ROL would be .06% on the indemnity limit chosen.
* Jurisdiction: India only
*Above Premium rates are subject to Service Tax @
10.3%.
Members and CA firms desirous to avail the benefits
of the aforesaid scheme may please visit http://icai.
newindia.co.in & online solution for the same.
For grievance or any other queries please contact
the New India Personnel Shri Satyanarayan Mohapatra,
Sr. Divisional Manager at satyanarayan.mohapatra@
newindia.co.in, Telephone: 022-24620311 or Dr.
Sambit Kumar Mishra, Secretary, CCBCAF&SMP,
ICAI at ccbcaf.query@icai.org, Telephone: 0120-
3045994.
CA. Naveen N.D. Gupta
Chairman
Committee for Capacity Building of CA Firms and
Small & Medium Practitioners (CCBCAF & SMP),
ICAI
E-Mail: chairman.ccbcaf@icai.org
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