Clause 7

The Council may make rules concerning indemnity against loss arising from claims in respect of civil liability incurred —

by an advocate and solicitor or former advocate and solicitor in connection with his practice or with any trust of which he is or formerly was a trustee; and

by an employee or former employee of an advocate and solicitor or former advocate and solicitor in connection with that advocate and solicitor’s practice or with any trust of which that advocate and solicitor or the employee is or formerly was a trustee.(2) For the purposes of providing such indemnity, such rules may —

authorise or require the Society to establish and maintain one or more funds;

authorise or require the Society to take out and maintain insurance with authorised insurers; or

require all advocates and solicitors making application for a practising certificate to take out and maintain insurance with authorised insurers.(3) Without prejudice to the generality of subsections (1) and (2), such rules may —

specify the terms and conditions on which indemnity is to be available, and any circumstances in which the right to it is to be excluded or modified;

provide for the management, administration and protection of any fund maintained by virtue of subsection (2)(a) and require all advocates and solicitors who have in force practising certificates to make payment to any such fund;

require all advocates and solicitors who have in force practising certificates to make payments by way of premium on any insurance policy maintained by the Society by virtue of subsection (2)(b);

prescribe the conditions which an insurance policy must satisfy for the purposes of subsection (2)(c);

authorise the Council to determine the amount of any premiums or payments required by such rules, subject to such limits, or in accordance with such provisions, as may be prescribed by those rules;

specify circumstances in which, where an advocate and solicitor for whom indemnity is provided has failed to comply with such rules or to make payment for such indemnity, the Society or the insurers may take proceedings against him in respect of sums paid by way of indemnity in connection with a matter in relation to which he has failed to comply;

specify the circumstances in which advocates and solicitors are exempt from such rules; and

empower the Council to take such steps as it considers necessary or expedient to ascertain whether or not the rules are being complied with.(4) Rules made under this section shall not come into operation until they have been approved by the Chief Justice who may if he thinks fit consult any of the other judges before giving his approval.(5) The Society shall have power to carry into effect any arrangements which it considers necessary or expedient for the purpose of providing indemnity under this section.(6) Nothing in this section shall affect the right of any advocate and solicitor, in addition to the indemnity provided in rules made under this section, to insure himself further against loss arising from such claims as may be instituted against him.”.