In October 2010 and as part of its commitment to protect the public interest and to raise the standards its members work to, the Royal Institution of Chartered Surveyors (RICS) has launched a new registration scheme for members undertaking valuation work.  The RICS Valuer Registration Scheme.

Whilst the scheme was launched in the 20 October it will become mandatory in the UK from 30 April 2011.   This will apply to all RICS members providing valuations in accordance with the RICS Valuation Standards (the Red Book). 

The RICS Rules require members to ensure that all valuation work carried out is covered by adequate and appropriate professional indemnity insurance.

On what basis must cover be held?

For a policy to comply with the RICS Rules in the UK then it must meet the following criteria:

• Be underwritten by an RICS listed insurer
• Incorporated RICS minimum policy wording
• Be retroactive for at least 6 years, or to the date your firm began trading if this date is less than 6 years ago
• Have a level of indemnity of at least £250,000 (highest levels are required in the firm’s turnover is over £100,000.  If turnover is between £100,001 and £200,000 then the amount increases to £500,000 and to £1million if turnover exceeds £200,000)
• The limit of indemnity should be on an each and every claim basis
• Uninsured excess of a maximum of 2.5% of the limit of indemnity or £10,000

For firms in the UK: ‘Each & Every and Any on claim’ is what is accepted under the minimum terms of adequate and appropriate Professional Indemnity Insurance.  Aggregated cover will only be considered as adequate and appropriate where there is a ‘round the clock’ reinstatement on the policy, which is only usually found on indemnity policies in excess of £2m with a layered PI policy. Therefore this is not standard and must be brought to the attention of the RICS