Step-by-Step Guide to Filling Out the Professional Indemnity Insurance Proposal Form

Completing the initial application is always an important step in building long-term legal confidence for any notary office or law firm. When submitting a professional indemnity insurance proposal, many organizations wonder how to allocate revenue percentages or which past matters or claims they should list. A Proposal Form is not merely an administrative formality; it is the legal foundation on which the insurance contract takes effect.

A clear and complete application will help the insurer assess the risk accurately, determine an appropriate premium, and safeguard the professional reputation of legal practitioners.

📋 Why the Proposal Form Is the Foundation of the Contract

Under the principles of professional indemnity insurance, the Proposal Form and supporting documents form an integral part of the insurance contract. Information about professional activities, personnel, and previous losses provides the basis on which the insurer assesses and accepts the risk.

If an applicant intentionally misstates or conceals material information, the contract may be invalidated or a claim may be declined when an incident occurs. Understanding this responsibility helps all parties comply with Professional Indemnity Insurance Obligations for Law Firms and Lawyers in Vietnam and the relevant legal requirements.

🏢 Information to Enter in the Professional Indemnity Insurance Proposal Form

The professional indemnity insurance Proposal Form for notaries and lawyers contains core sections that the legal representative must complete carefully.

1. Legal Entity and Organizational Structure

• Basic information: The full legal name of the professional organization, its principal office address, branch offices, and partners. Include the date on which the office was established under its operating licence.
• Organizational changes: State whether the office has merged, been acquired, consolidated, or changed its legal name during the past five years.
• Cross-management relationships: Declare whether the organization, its members with management roles, or any notary or lawyer owns, manages, or financially controls banks, credit funds, lending organizations, guarantee companies, or real estate companies.

2. Professional Team Roster and Capacity

The insurance premium and scope of indemnity are closely linked to the professional team actually in place. The form requires a detailed staffing breakdown, including:

• The full names of all managing members or partners, professional registration card numbers, the card issue dates for notaries or lawyers, and their professional experience.
• Staff numbers by position, including office head or director, partners, lawyers or notaries, trainee lawyers for law offices, professional assistants, and administrative support staff such as reception, correspondence, accounting, and human resources personnel.

3. Revenue Scale and Service Mix

Revenue from professional activities reflects the volume of transactions the organization handles each year. The applicant must provide revenue figures for three years: the most recently completed fiscal year, the current year, and an estimate for the following year.

Alongside total revenue, applicants must provide the percentage of revenue generated by each area of practice.

• For a notary office: The proportions attributable to pre-drafted contracts and transactions, real estate-related matters, powers of attorney, wills, inheritance division or settlement documents, notarized translations, and other services. You must also list the 10 services that generated the most revenue during the past three years.
• For a law office or law firm: The proportions attributable to litigation and dispute resolution, real estate transfers, corporate legal advice, intellectual property advice, commercial services that are not purely legal, and other advisory areas. If the firm practices overseas, provide the relevant country details and corresponding percentages.

4. Insurance History and Five-Year Claims Record

Because the contract operates on a claims-made basis, loss history is an important criterion when assessing whether to accept the risk and determining the retroactive date.

• Details of previous insurers, insurance periods, and liability limits.
• Whether a former insurer has ever declined coverage, increased the premium, imposed special restrictions, or refused to renew the policy.
• Details of claims brought against the organization during the past five years, including the amount claimed, the cause, and the status of resolution.
• A report on any current event, circumstance, or incident that the organization believes could lead to a future compensation claim.

✍️ Checklist Before Signing and Submitting the Proposal Form

To help ensure the application is valid and reduce the time required for assessment, the person responsible for the application should check the following:

• ☐ Confirm that the full legal name, tax code, principal office address, and operating licence match the organization’s legal records.
• ☐ Attach a complete list showing all practising lawyers and notaries, together with their card numbers and certificates that remain valid.
• ☐ Reconcile the total revenue and the percentage allocation across professional services so that the percentages add up to exactly 100%.
• ☐ Honestly review all matters that could result in a dispute or that have previously resulted in written complaints from clients.
• ☐ Select the indemnity limit for each claim and the aggregate indemnity limit according to the office’s protection needs.
• ☐ Have the legal representative sign and affix the official red company seal to confirm the truthfulness of the entire declaration.

🛡️ Professional Legal Support for Your Practice

Every notarized document or legal advisory opinion carries significant responsibility for the client’s assets and the organization’s reputation. Proactively arranging insurance and disclosing accurate information from the outset is the most professional risk-management measure.

If your notary office or law firm needs advice on premium rates, help completing the Proposal Form, or guidance on Professional Indemnity Insurance for Legal and Notary Practices in Vietnam: An Essential Shield for Clients and Practitioners, contact the professional team at paa.vn through the hotline at 0347674755 for dedicated, prompt, and accurate support.