Liability Insurance

Liability Insurance :

Liability is legal responsibility for paying money for damage or injury. The policy also provides personal liability coverage for damage the policyholder or dependents cause to third parties. An adjuster will determine the extent of the insurers liability for loss when a claim is submitted

Types of Liability Insurance :

  • Public Liability policy under Public Liability Insurance Act (Hazardous Substances
  • Public Liability Policy for Industrial and Non-Industrial Risks
  • Product Liability Policy.
  • Professional Indemnities
  • (a) Doctors or Medical Practitioners (b) Medical Establishments (c) Engineers, Architects and Interior Decorators (d) C. As, Financial and Management Consultants (e) Lawyers, Advocates and Solicitors
  • Employer’s Liability (Workmen’s Compensation Policy)
  • Directors and Officers liability policy
  • Liability cover under Motor, Marine Hull and Aviation Insurance.
  • Employees state insurance act, 1948

Special features of Liability Insurance :

  • Payment of Claims.
  • Indemnity from potential legal liability.
  • Claims negotiated by insured
  • Reimbursement of legal cost
  • Instead of a sum insured, a limit of indemnity is stated in public liability policy
  • To arrive at premium, rating depends upon limit indemnity, turnover, number of locations

The public liability risk can be divided into 2 parts:-

  • Industrial Risk
  • Non-Industrial Risk
  • Industrial Risk:-Manufacturing units, goodowns, warehouses

    Non-Industrial Risk:- Hotels, clubs, cinema halls, theatres, Residential premises office etc

Cover provides:

  • Against their legal liability
  • To pay compensation including claimant legal fee.
  • Anywhere in India,-in respect of accidents causing death or injury or damage to property

Exclusions:

  • Liabilities assumed by agreement.
  • Due to natural calamities like Act of God.
  • Due to deliberate, willful-non compliance of statutory provisions
  • Loss of goodwill, market
  • Copy right, patent and trade name
  • Due to fines and penalties.
  • Due to war and civil rebellion.
  • Contamination by radioactivity.
  • Due to ownership of motor vehicle and due to its use.
  • Transportation of material unless covered
  • Due to use of aircraft, hovercraft
  • Liabilities prior to retroactive date
  • Due to fines and penalties.
  • Liabilities insured elsewhere.

Additional coverage:-:

  • Pollution cover
  • Cover for discharge of effluents
  • Goodowns, warehouses
  • Cover for AOG perils
  • Transportation cover
  • Multiple Units