November Group: SIF support must end
Polls put Law Society under
January 21, 1999 at 08:58 AM
2 minute read
The November Meeting Group has called on the Law Society to end its support of the Solicitors Indemnity Fund (SIF), after a Legal Week survey found that 60% of the top commercial firms want to opt out of the fund.
November Group chairman Christopher Hales this week said he was encouraged by the poll, which also found that one in three commercial firms would support legal action against Chancery Lane if it tried to retain SIF's insurance monopoly.
"I hope the Law Society will take notice of this survey and the other pressures that are being brought to bear," he said.
Earlier this month the November Group revealed it had obtained a legal opinion from the leading barrister Michael Beloff QC which argued that SIF's monopoly was illegal.
But Hales went on to describe as "encouraging" a proposed compromise that would allow firms to insure on the open market but provide back-up for firms which could not obtain competitive premiums.
The Law Society had been due to decide what to do about SIF at a special meeting on Wednesday.
But the new option, proposed by consultancy Aon Risk, looks set to delay a final decision until March.
The Aon Risk report suggests the Law Society should buy a personal indemnity package from a selection of private insurers and offer it to law firms.
Under the new "master policy" option SIF would continue to have a role administering claims. But law firms would have the right to buy their insurance on the open market.
Hales attacked the Law Society for delaying a final decision on SIF for another two months, but said Aon Risk's idea could work as long as no restrictions were imposed on the freedom of firms to insure on the open market.
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