• GR-8 GR-8 Professional Indemnity Coverage

    • GR-8.1 GR-8.1 Key Provisions

      • GR-8.1.1

        Licensees must maintain professional indemnity coverage. The professional indemnity coverage must be obtained from an insurance firm acceptable to the CBB and licensed in the Kingdom of Bahrain.

        May 2011

      • GR-8.1.2

        Upon request, licensees must provide to the CBB evidence of the coverage in force required under Paragraph GR-8.1.1.

        May 2011

      • GR-8.1.3

        A licensee is encouraged to assess its insurance needs, through professional advice, to ensure its adequacy to the level of business undertaken, notwithstanding the minimum limit of indemnity.

        May 2011

      • GR-8.1.4

        The minimum limit of indemnity is BD 75,000.

        May 2011

      • GR-8.1.5

        The maximum excess or deductible allowable under the policy shall be BD 15,000.

        May 2011

      • GR-8.1.6

        In accordance with Paragraph EN-B.3.1, licensees may not enter into or make a claim under a contract of insurance that is intended to, or has the effect of, indemnifying them from the financial penalties provided for in Module EN.

        May 2011

      • GR-8.1.7

        The requirement to maintain insurance coverage will normally be met by the licensee concerned obtaining an insurance policy from an insurance firm. The CBB may also accept an insurance policy issued at group level, e.g. issued with respect to the parent of the licensee, provided the terms of the policy explicitly provide coverage with respect to the licensee.

        May 2011

      • GR-8.1.8

        Unless otherwise agreed in writing with the CBB, the policy must contain a clause that it may not be cancelled or lapsed without the prior approval of the CBB. The policy must also contain a provision for an automatic extended reporting period in the event that the policy is cancelled or lapsed, such that claims relating to the period during which the policy was in force may subsequently still be reported.

        May 2011