LegalWise hits our shores

| Friday January 25, 2013 00:00

 

Mmegi: In simple terms, what is legal expenses insurance? JL: Legal expenses insurance, also known as legal protection insurance, offers support for members by providing legal advice and covering legal fees, regardless of whether the insured is the claimant or the defendant. Legal expenses insurance policies normally cover civil disputes (e.g. disputes concerning personal injury, consumer rights, property), labour and criminal matters.

Mmegi: Why is it important for individuals to have legal  expenses insurance?JL: Increasingly people need legal protection and assistance to solve common disputes and actively defend and enforce their rights. The number of conflicts or claims that people have to deal with has been constantly growing, e.g. conflicts over consumer rights, motor vehicle disputes, labour law, etc. Furthermore, the costs, length and complexity of the legal environment usually stops people from seeking justice. People are afraid, not only of the costs, length and uncertain outcome of court proceedings, but also of the costs of legal representation. As a consequence, a lot of people do not even try to assert their rights. By contrast, those who take out legal expenses insurance will be helped and assisted by their insurer either directly or through an external lawyer.

Mmegi: What are some of the standard exclusions that individuals need to be aware of?JL: The policy does have a number of important exclusions, which individuals need to be aware of. For example;  the policy has various waiting periods until which members can claim for legal fees incurred. (i.e. the waiting period for rescission of administration orders is three months).  The cover doesn't include any pre-existing matters and does not cover any business or commercial activities. The policy does not cover an offence for which an admission of guilt fine is payable (i.e. traffic offences).

LegalWise's in-house legal counsellors will however try to assist the member, even when the matter is not covered by the policy. All new members will be sent a LegalEazi Guide which outlines the terms and conditions of the policy.Members are encouraged to read the terms and conditions. And if a member is not satisfied with the terms and conditions, they are welcome to cancel the policy within the first three months and they will be refunded their premiums provided they do so in writing.

Mmegi: How does LegalWise Botswana help members respond to legal matters?JL: When an individual becomes a member, LegalWise can assist them in two ways:Firstly, it assists members with services provided by the legal counsellor in the LegalWise branch or telephonically. For example; drafting of legal letters, explanation and vetting of contracts and any other matter that does not require representation in court.

Where a matter requires representation by an attorney LegalWise will refer the member to an attorney and, subject to the terms and conditions of the policy, will pay the legal fees incurred on behalf of the member. When a member is referred to an attorney, contractual relations exists between the attorney and the LegalWise member. Members do have the option to use an attorney of their choice. In this case, LegalWise will pay the legal fees incurred up to the published tariffs.

Mmegi: How does LegalWise perceive the current legal expenses insurance industry landscape?JL: Legal expenses insurance is an established concept in Botswana. There are a number of companies that offer legal expenses insurance in the market. LegalWise Botswana specialised service offering is built on decades of experience in the industry. LegalWise is independent and is therefore able to defend the rights of its members regardless of the company involved. In addition to LegalWise Botswana's specialisation and independence, we provide members with access to LegalWise branches and payment of legal fees for covered matters where an individual is visiting or staying temporarily in South Africa. LegalWise is well known as a brand in Botswana, people are familiar with it and what it offers - this is as a result of access to South African television (DStv & SABC) and the cross border traffic between the two countries.

Mmegi: Why is LegalWise entering the Botswana market now? JL: There is a growing demand and need for legal expenses insurance in the country. Since the launch of LegalWise in South Africa, we have received numerous requests to open a business in Botswana. The opening of LegalWise Botswana falls in line with our business vision of expanding our specialised offering in selected African countries.

Mmegi: When did LegalWise start its operations in Botswana and how many clients does it have since its operation.JL: We have been in Botswana for 18 months but we started operating in mid-December last year. Currently we have more than 500 clients. We got our licence from the Non-Banking Institutions Regulatory Authority (NBFIRA) in October last year.

Mmegi: How does LegalWise plan to develop local talent in the future?JL: To date we have already appointed a local professional, Tshepiso Mongwa, as a senior legal counselor and are committed to employing and developing local talent as our business grows within Botswana in the same manner.