{
  "url": "https://openlegislation.uk/insurance-brokers-registration-act-1977-repealed/section-12",
  "json_url": "https://openlegislation.uk/insurance-brokers-registration-act-1977-repealed/section-12.json",
  "legislation": "ukpga/1977/46",
  "legislation_title": "Insurance Brokers (Registration) Act 1977 (repealed)",
  "legislation_url": "https://openlegislation.uk/insurance-brokers-registration-act-1977-repealed",
  "path": "section/12",
  "kind": "section",
  "number": "12",
  "heading": "Professional indemnity, etc.",
  "text": "(1) The Council may make rules for indemnifying—\n(a) practising insurance brokers and former practising insurance brokers, and\n(b) enrolled bodies corporate and former enrolled bodies corporate,\nagainst losses arising from claims in respect of any description of civil liability incurred by them, or by employees or former employees of theirs, in connection with their businesses.\n(2) The Council may also make rules for the making of grants or other payments for the purpose of relieving or mitigating losses suffered by persons in consequence of—\n(a) negligence or fraud or other dishonesty on the part of practising insurance brokers or enrolled bodies corporate, or of employees of theirs, in connection with their businesses; or\n(b) failure on the part of practising insurance brokers or enrolled bodies corporate to account for money received by them in connection with their businesses.\n(3) For the purpose of providing such indemnity and of enabling such grants or other payments to be made, rules under this section—\n(a) may authorise or require the Council to establish and maintain a fund or funds;\n(b) may authorise or require the Council to take out and maintain insurance with authorised insurers;\n(c) may require practising insurance brokers or enrolled bodies corporate or any specified description of practising insurance brokers or enrolled bodies corporate to take out and maintain insurance with authorised insurers.\n(4) Without prejudice to the generality of the preceding subsections, rules under this section—\n(a) may specify the terms and conditions on which indemnity or a grant or other payment is to be available, and any circumstances in which the right to it is to be excluded or modified;\n(b) may provide for the management, administration and protection of any fund maintained by virtue of subsection (3)(a) above and require practising insurance brokers or enrolled bodies corporate or any description of practising insurance brokers or enrolled bodies corporate to make payments to any such fund;\n(c) may require practising insurance brokers or enrolled bodies corporate or any description of practising insurance brokers or enrolled bodies corporate to make payments by way of premium on any insurance policy maintained by the Council by virtue of subsection (3)(b) above;\n(d) may prescribe the conditions which an insurance policy must satisfy for the purposes of subsection (3)(c) above;\n(e) may authorise the Council to determine the amount of any payments required by the rules, subject to such limits, or in accordance with such provisions, as may be prescribed;\n(f) may specify circumstances in which, where a registered insurance broker or an enrolled body corporate for whom indemnity is provided has failed to comply with the rules, the Council or insurers may take proceedings against him or it in respect of sums paid by way of indemnity in connection with a matter in relation to which there has been a failure to comply with the rules;\n(g) may specify circumstances in which, where a grant or other payment is made in consequence of the act or omission of a practising insurance broker or enrolled body corporate, the Council or insurers may take proceedings against him or it in respect of the sum so paid;\n(h) may make different provision for different circumstances, and may specify circumstances in which practising insurance brokers or enrolled bodies corporate are exempt from any of the rules;\n(i) may empower the Council to take such steps as they consider necessary or expedient to ascertain whether or not the rules are being complied with; and\n(j) may contain incidental, procedural or supplementary provisions.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words substituted by Financial Services Act 1986 (c. 60, SIF 69), s. 138(3)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1977/46/section/12",
    "retrieved_at": "2026-10-29T10:24:09.506458+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}