Compensation Fund

The Law Society's Compensation Fund is a fund administered by the Council of the Law Society ("the Council"). Every lawyer in private practice contributes $100 per year to the Fund. The Fund is a discretionary fund to mitigate loss sufferred by any person due to dishonesty of a lawyer or his staff.

Who Makes a Grant from the Compensation Fund?

The making of a grant and/or the amount of a grant is at the discretion of the Council.

When Can a Grant be Made?

A grant may be made when the Council is satisfied that a financial loss was caused:-

 

1.

by the dishonesty of a lawyer in his practice or when he was your lawyer/ trustee; OR

 

2.

by the dishonesty of a member of the lawyer's staff in the course of his employment by the practice resulting in failure to pay or deliver trust money or trust property received by the practice.

("Staff" means any clerk or servant employed by the lawyer in connection with his practice in Singapore as a lawyer OR any officer or employee of a law corporation in connection with legal services performed in Singapore by the law corporation.)

What Loss Cannot be Compensated by a Grant?
 

1.

The Council cannot compensate you for any loss caused by:-

   

a.

the lawyer whilst not acting in his professional capacity. For example, loss of a personal loan advanced by you to the lawyer or loss suffered when you undertook a business venture with the lawyer; or

   

b.

by his Staff not acting in the course of his employment; or

   

c.

the professional negligence or malpractice of your lawyer. The fund is not an insurance scheme; or

   

d.

your own dishonest acts, negligence, omission or delay.

 

2.

If you are unable to prove the loss was caused by the dishonesty of a lawyer or his staff, the Council cannot compensate you for the loss.

Requirements that must be Satisfied when applying for a Grant
 

1.

You must submit your Compensation Fund application within 6 months after you come to know of your loss. The Council may allow an application outside the time limit if you have good reasons to justify your delay.

 

2.

The Council will consider your application only if you can show that you have exhausted all civil remedies in law against the lawyer or his Staff for the loss that was caused to you.

 

3.

You must make a complaint to the Law Society and/or the Police in respect of the dishonesty of the lawyer or his staff and assist the Law Society or the Police in their investigations, if any.

Who Considers Your Claim for a Grant?

Your application will first be referred to the Law Society's Compensation Fund Committee (the Committee) for consideration. The Committee will then make a recommendation to the Council. The Council will make the final decision on your application.

Please address all correspondences to the Law Society Compensation Fund Committee.

Documents in Support of Your Claim for a Grant

You must complete the relevant forms and state the full particulars of the circumstances, which gave rise to your loss, supported with all relevant documents. The Council may also require you to support your application with a Statutory Declaration.

You must attach at the end of your completed application form additional sheet(s) entitled "Schedule of Particulars" where you furnish particulars of your claim in support of your application. You may in a cover letter describe any hardship you face as a result of the loss sustained.

Download the Compensation Fund Application form here. Completed forms must be sent by post or by hand to the Law Society for the attention of Director, Conduct.