Friday, March 29, 2013

[aaykarbhavan] 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

--
 
 
CA Ramachandran Mahadevan,M.Com.,F.C.A.,
I-708,Mantri Tranquil,Subramanyapura Post,
Bangalore-560061
Karnataka,India.
+91 80 42011024
 
 
You never achieve success unless you like what you are doing."
 
--Dale Carnegie,
American self-help author and lecturer
 
 
 
 
 




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