Frequently Asked Questions (FAQ)
This FAQ is relevant only to Post Dispute Insurance ("PDI") arranged through Legal Protection Services (Pty) Ltd ("LPS").
PDI is a novel form of insurance and in order to assist attorneys and other professional advisers the following questions and answers are designed to quickly answer some of the common questions which arise
Click on the question below to go to the answer
1 CONFIDENTIALITY
1.1 Is the information discussed between the client and LPS confidential?
2 THE ESSENTIAL NATURE OF PDI
2.1 What is PDI?
2.2 How Does PDI Assist A Losing Plaintiff?
2.3 What is PDI?
2.4 Can PDI Be Purchased in Respect of All Litigation?
2.5 How Much Cover Can Be Purchased?
2.6 Is There A Policy Document Setting Out the Scope of Cover?
2.7 Does LPS Fund the Ongoing Costs of Pursuing the Litigation?
2.8 To What Extent Does PDI Assist in the Provision of Security for Costs That May Be Ordered by the Court in Favour of the Defendant?
3 THE UNDERWRITING OF PDI
3.1 How is PDI Underwritten?
3.2 Why is it Not Possible for PDI Underwriters to Rely on the Legal Opinions Provided by the Proposer Rather Than Instruct An Independent Counsel?
3.3 Will the Proposer Be Able to See A Copy of the Opinion of Independent Counsel?
3.4 How Long Does it Take for A Quotation to Be Available?
4 THE COST OF PDI
4.1 What Are the Premium Costs?
4.2 If the Litigation Settles Early, Will PDI Underwriters Refund Any Part of the Premium?
4.3 Can An Insured Plaintiff Who is Successful and in Receipt of An Award of Costs Against the Defendant Include the PDI Premium As A Cost Payable by the Defendant?
4.4 Can A Proposer Agree to Accept An Excess Or Co-insurance Proportion As A Way of Reducing the Cost of the Premium?
4.5 When is the premium payable?
5 THE INCEPTION OF THE INSURANCE
5.1 What Else Has to Be Done If A Quotation Has Been Given and is Acceptable?
5.2 When Does Inception Take Place?
6 PDI DURING THE PROCEEDINGS
6.1 How Involved Are the Underwriters in the Conduct of the Case?
6.2 What Happens If the Other Side Offers A Settlement?
6.3 In What Circumstances Will Underwriters Require the Insured to Accept A Settlement, Or Payment Into Court, and Discontinue the Proceedings?
6.4 What Happens If the Insured Has Misled His Advisers, And/or Underwriters, As to the Facts of the Case?
6.5 Sometimes the Defendant Will Issue A Counter-claim As Part of His Defence. Will PDI Include Own Costs in Respect of Defending the Counter-claim?
6.6 What Happens If the Insured Wishes to Discontinue?
6.7 What Happens If There is A Dispute Between the Insured and Underwriters?
6.8 What Happens If the Limit of Indemnity Becomes Too Low (Eg. Where Senior Counsel is Brought in to the Matter After the Policy Has Incepted)?
7 PDI CLAIMS
7.1 When Does A Claim Arise Under PDI?
7.2 What Happens If the Proceedings Are Settled Prior to the Trial of the Action in Court?
7.3 Does PDI Indemnify All Legal Expenses?
7.4 Are Bills Submitted to Underwriters During the Course of the Proceedings?
7.5 When Will Underwriters Pay Claims?
7.6 What Exclusions Normally Apply?
8 THE COMPANY
8.1 Who are LPS?
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