NSW licensees face mandatory indemnity insurance

NSW licensees face mandatory indemnity insurance

19 December 2012 by Simon Parker 0 comments

Staff Reporter

Real estate licensees in NSW will be required to have mandatory professional indemnity insurance from 1 January next year.

“The introduction of mandatory professional indemnity insurance is a win for consumers and a win for the profession, and is the result of many years of persistent lobbying by Real Estate Institute of NSW (REINSW),” the REINSW said in a statement.

According to the Property, Stock and Business Agents Amendment (Professional Indemnity Insurance) Regulation 2012, licensees will be required to hold cover of at least $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance, the REINSW said.

“Although the new regulation commences on 1 January 2013, in order to allow time for uninsured licensees to obtain compliant professional indemnity insurance coverage, the requirement for mandatory insurance will not take effect until 1 July 2013,” the REINSW added.

The new requirement follows a similar move by the REINSW, which made its members have $2 million in mandatory indemnity insurance from 1 July this year.

REINSW CEO Tim McKibbin said in September that most consumers would assume that this cover would already be in place.

“I believe it would come as a complete surprise to many consumers that real estate agents in New South Wales have, until now, not been required to carry this type of insurance,” he said.

Staff Reporter

Real estate licensees in NSW will be required to have mandatory professional indemnity insurance from 1 January next year.

“The introduction of mandatory professional indemnity insurance is a win for consumers and a win for the profession, and is the result of many years of persistent lobbying by Real Estate Institute of NSW (REINSW),” the REINSW said in a statement.

According to the Property, Stock and Business Agents Amendment (Professional Indemnity Insurance) Regulation 2012, licensees will be required to hold cover of at least $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance, the REINSW said.

“Although the new regulation commences on 1 January 2013, in order to allow time for uninsured licensees to obtain compliant professional indemnity insurance coverage, the requirement for mandatory insurance will not take effect until 1 July 2013,” the REINSW added.

The new requirement follows a similar move by the REINSW, which made its members have $2 million in mandatory indemnity insurance from 1 July this year.

REINSW CEO Tim McKibbin said in September that most consumers would assume that this cover would already be in place.

“I believe it would come as a complete surprise to many consumers that real estate agents in New South Wales have, until now, not been required to carry this type of insurance,” he said.

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