Page 21 - Insurance Times January 2018 Sample

EVERYTHING YOU

WANTED TO

KNOW ABOUT

LIABILITY

INSURANCE

Liability Civil Under Common Law: Liability Insurance Act Policy under "Public
A body of law consisting of past court decisions and customs Liability Insurance Act 1991" (Hazardous
and usages recognized by courts.
substances) Effective date 1.4.1991 for new
Liability Contingent: owners and 1.4.1992 for existing owners:
Liability for damages arising out of the acts or omissions of To provide through Insurance, immediate relief by
others, who are not employee or Agents of the entity held "OWNERS" to persons affected due to: "Accidents:
responsible. Fortuitous, sudden or unintentional occurrence" While
"handling e.g., Manufacture, processing, treatment,
Liability Contractual:
package, storage, transportation by vehicles, use, collection,
Liability assumed under some contract such as a lease that destruction, conversion, offering for sale, transfer or the like.
would not be present except for the contract.
Hazardous Substances viz., Any substance or reparation
Liability Criminal: which, by its reasons of its chemical or physio-chemical
Criminal liability is enforced by the state and it results into properties or handling is liable to cause harm to human
punishment in the form of fine or imprisonment or both. beings, other creature, plants, micro-organism property or
the environment (the Environment protection Act, 1986)
Liability Insurance: and as notified, by the Central Government (Public Liability
Any form of coverage whereby the insured is protected Insurance Act - 1991) " On NO FAULT LIABILITY BASIS.
against claims of other parties from specified events.
Insurance Limit:
About the author "Anyone Accident" - Minimum equal to "Paid-up capital up
to maximum of Rs. 5 crores. "Anyone year" - up to a
Lajpat Ray Chandnani maximum of Rs. 15 Crores.Liability Beyond Insurance Limit:
lajju1954@gmail.com To be met by Environmental relief fund (ERF) Further liability
www.lajju.in beyond total of Insurance and ERF - to be borne by the

The Insurance Times, January 2018 21

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010