Introduction
The structure of the policy for both industrial and non industrial risks is almost the same. Both the classes are governed by market agreement which came into force from 1.1.1988 for industrial risks and from 1.12.1991 for non industrial risks.
According to Maket Agreement, industrial risks are manufacturing industries and storage risks such as depots, warehouses, godown, tanks, farms etc whereas non industrial risks are hotels, club houses, cinema halls, office premises etc.
These policies ie. Public liability Insurance (industrial and non industrial) have the same coverages, exclusions.
Coverage:- The Insurer Undertakes To Indemnify The Insured For Bodily Injury Or Property Damage Claims Arising Out Of Accidents, Arising Out Of And In Connection With Business, Specified In The Policy, And the Defence Costs Incurred In Connection Thereto.
Important condition:
1. The Cause Of Action Must Arise In India And Liability To Pay Claim Must Be Established As Per Indian Law.
2. No Admission, Offer, Promise Or Payment Shall Be Made Or Given By Or On Behalf Of the Insured Without The Written Consent Of The Company.
Indemnity Granted Extends To :
1. Officials Of the Insured In Their Business Capacity
2. Officers, Committees & Members Of The Insured’s:
a) Canteen d) Medical
b) Social e) Fire Fighting
c) Sports f) Welfare Organisations
3. Personal Representatives Of The Estate Of Any Person In Respect Of Liability Incurred By Such Person
Indemnity Granted Extends To :
Technical Collaborators: By paying addn premium, the policy can be extended to include legal liability of named collaborator w.r.t technical collaboration.
Pollution Coverage: This insurance can be extended to cover liability for death/injury or property damage etc caused by pollution subject to the condition that the pollution was caused by accident was sudden and unintended for eg. Fire/ explosion/ breakdown of effluent treatment plant etc. This extn also provides for cost of clean up etc.
Discharge of Treated Effluents: This extension is covered at additional premium to cover legal liability of insured for death/ injury/Property damage arising out of accident directly caused by treated effluents whilst being carried outside premises by pipelines to point of discharge as declared. These pipelines are automatically covered if the length is not more than 1 km.
General Exclusions under the Public Liability policies:
- Act of God Perils (May Be Added On additional Premium)
- Transportation/ Pollution (May Be Added On additional Premium)
- Arising Out of Deliberate Willful Or Intentional Non-Compliance Of Any Statutory Provision.
- Arising Out of Fines, Penalties, Punitive Or Exemplary Damages.
- Infringement Of Plans, Copy Rights, Patents, Trade Marks, Registered Design.
- Any Motor/Aircraft/Hovercraft Liability
- Injury To Any Person Under A Contract Of Employment/Apprenticeship.
- Excess :- As stated in the policy
- Statutory Liability Under The Act 1991 And Any Future Statute.
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