Page 25 - Insurance Times January 2018 Sample

Gliding, Sky Diving etc) (b) Accidental damage to the Liability Insurance, Multimodal Transport Operator (MTO)
property of any visitor or guests. (c) Injuries (including death) Liability Insurance Policy: The Multimodal Transportation of
due to food poisoning. (d) Loss of visitors property from the Goods Act, 1993 provides for legal liability for loss or damage
premises. The Policy covers legal liability only if both injury to cargo. It provides for the creation of a licensed operator
or damage is caused through fault or negligence of (i) the called the MTO who could be held responsible for the loss or
insured (ii) the insured's contractor (iii) any of its employees damage to the cargo entrusted to them for transportation.
or (iv) defect in the ways, works, machinery or plant. One of the requirements of the MTO license is the insurance
to cover liability that arises on them. MTO is liable for (a) Act
Liability Insurance, Insurable Interest: for their Principal I arranging shipping and transport services,
Insurable interest is the legal right to insure. The three or (b) Contract with the cargo owner to transport goods, or
essentials of insurable interest are: (c) Provide expert advice, assistance and opinions. Although
a. The existence of a potential legal liability which is the MTO came into effect in 1993 Indian insurers were not
capable of being insured providing this cover till 2001. Currently few insurers are
offering this cover in the market. In the light of above Ministry
b. Such potential liability must be the subject matter of
insurance, and of Finance had given special dispensation allowing foreign
insurers to directly underwrite this business.
c. The insured must bear a legal relationship to the
subject matter whereby he will benefit on freedom from Coverage:
liability and will lose financially on creation of liability.
To cover insured's liability to (a) A customer or third party
for loss or damage to cargo in the insured's care, custody
Liability Insurance, Lift Third Party Liability:
or control (ii) A third party for death, bodily injury or damage
Policy covers legal liability for accidental bodily injury / to property (c) A customer or third party for errors and
accidental Direct damage to wearing apparel or personal omissions or professional negligence (iv) An Authority for
effects of third parties in connection with insured lift fines and duty.
including machinery, plant, door, safety devices or other
appliances.
Cargo Liability:
Indemnity is provided to the insured for its legal liability an
Liability Insurance, Liquor Liability Policy:
claims expenses in respect of claims which arise from
The policy is designed for manufacturers, distributors etc of physical loss of or physical damage to cargo provided such
alcoholic beverages. The policy covers the liability excluded liability arise from The Indian Multimodal Transport Act,
under CGL Policy. The policy is also available to bars, FIATA or Combicon Bill of Lading or the Insured's house bill
restaurants etc for their so called "Liquor Liability" imposed of lading or standard trading conditions or other recognized
by Common Law or by Statutes. Protects the owners of an transport convention.
establishment in which alcoholic beverages are sold against
liability arising out of accidents caused by intoxicated Third Party Legal Liability:
customers who have been served or sold the alcoholic Indemnity is provided to the insured for its legal liability in
beverages. Refer: Liability Insurance, Dram Shop Liability respect of a claim arising from an accident causing (i) Bodily
Insurance."
injury to a third party, or (ii) Physical loss or physical damage
to third party property, or (iii) Consequential loss suffered
Liability Insurance, Market Pools: by a third party.
Market pools formed by a consortium of insurers are not
very common in liability insurance except perhaps in extra- Professional Indemnity:
hazardous risks e.g., demolition contracts. However, public Usually an add on extension. Covers the legal liability and
liability insurance for nuclear reactor operations is available expenses arising from (i) The negligent performance of a
on a pooling basis, from the "British Insurance (Atomic professional duty, (ii) Fraud by an employee (iii) Libel, slander
Energy) Committee comprising the insurance companies and or infringement of personal rights that has not arisen from
Lloyd's underwriters. publication in an independent journal etc (iv) An
unintentional breach of warranty of authority where the
Liability Insurance, Medical Practitioners: insured has contracted on another person's behalf believing
Refer: Professional Legal Liability for Medical Practitioners." they have the authority to do so.(v) A misdirected claim

The Insurance Times, January 2018 25

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