Law Mutual is the unincorporated association or body of persons who contribute to the Law Mutual Fund for the purpose of obtaining professional indemnity insurance and which is:
(a) provided with administrative services by the Society as trustee of the Law Mutual Fund under the business name “Law Mutual (WA)”;
(b) by s 329 of the Legal Profession Act 2008 (WA) and under the name “Law Mutual (WA)”, continued as an entity under that Act; and
(c) a company within the definition of that term in s 995-1 of the Income Tax Assessment Act 1997 (Cth).
Under the Legal Profession Act 2008 the Law Society of Western Australia is required to make professional indemnity insurance arrangements for practitioners and former practitioners. Under the Legal Profession Regulations 2009, the Law Society of Western Australia is required to enter into arrangements with one or more insurers for professional indemnity insurance for practitioners and former practitioners.
Law Mutual (WA) was established by the Law Society to administer the professional indemnity insurance arrangements.
The Law Society is not licensed under the Corporations Act 2001 in relation to the operation of the Scheme, and the Scheme is not regulated under the Insurance Act 1973.
The major functions of Law Mutual (WA) are to:
- obtain competitively priced insurance coverage for Western Australian law firms
- implement risk management strategies to reduce the instances of claims
- establish an efficient claims management service
The details of the professional indemnity insurance arrangements can be found in the Annual Information Booklet. As part of the insurance arrangements a Master Policy 2017/18 has been taken out by the Law Society.
Professional Indemnity Insurance Management Committee
Pursuant to Section 331 of the Legal Profession Act 2008, the Law Society established the Professional Indemnity Insurance Management Committee. It is comprised of seven members; three non-Council members and four Council members. The Council has delegated some of its powers to the Committee to assist it in the efficient running of Law Mutual (WA). The Committee reports to the Council of the Law Society.