Kuthubul Zaman Bukhari urged the 24,000-strong Bar to vote in the 16-member alliance, named the “progressive group”, who have promised to lower the cost of insurance premiums significantly.
He said the SIF scheme, if implemented, will likely see the annual mandatory premium payment, which currently stands at RM1,000, reduced by up to 40%.
Kuthubul said the current insurers were making about RM12 million in profits each year.
“Vote for the group as they will then push the Bar Council to move from the current insurance cover to the SIF, which has been approved by the Attorney-General’s Chambers,” he said in a WhatsApp message currently being circulated among legal practitioners.
“The Bar’s annual general meeting in 2009 had already passed a resolution to set up the scheme, so the Bar Council is duty bound to implement (it).
“However, the previous and present Bar Council have refused to implement it,” he said in the message sighted by FMT.
Forty-two lawyers are vying for 16 seats on the Bar Council next term.
All marked ballot papers must be returned by Nov 30, with the newly elected council expected to take office in March.
Kuthubul told FMT the Bar’s professional indemnity insurance (PII) committee had over the years raised about RM39 million for the SIF scheme, which the Bar Council continues to hold.
He said insurance companies are likely to take external factors into account, which may result in an increase in premiums.
He also said several countries have seen the collapse of insurance companies engaged to provide cover, leaving lawyers to bear claims made against them on their own.
“To avoid this, the Bar Council passed a resolution to set up the SIF scheme. With the RM39 million raised and with the AGC endorsing the SIF rules, we could have implemented the scheme, but the council did not,” he said.
Kuthubul said the claims history showed that only about 50% of premium contributions were used to satisfy claims made, resulting in “substantial profits” for insurers.
“If we move towards SIF, those profits will remain with the Malaysian Bar.
“Further, unlike insurers who will try to repudiate liability, we will assist our members to resolve the issues,” he said.