A claim is a demand by a client that the conveyancer reimburse them or indemnify them against any loss. Claims can be made either by letter, by service of legal proceedings, or orally. Some claims, particularly those made orally, are made by disgruntled clients as an outlet for their frustration at such things as delay in settlement, lack of understanding of rate adjustments etc. It is not suggested that such complaints be formally notified provided the conveyancing genuinely believes the potential claim is an idle threat.
When deciding if you should notify of a possible claim no consideration should be given as to whether the claim is warranted, or if it would be successful or not. All claims should be notified so that any defence is not prejudiced.
HOW TO NOTIFY A CLAIM
A notification should be made in writing. You should make a notification as soon as you are aware of the claim or of the circumstances giving rise to a possible claim.
Notification should be made to the Institute's insurance broker: Salisbury Payne Tinslay, Suite 4, 18 Gibbs Street, Miranda 2228, Ph: 9525 9311.
The notification should set out all the circumstances of the claim giving as much detail as possible.
If you are in doubt you can call the Institute or our broker for further details.