Page 19 - The Insurance Times October 2025

Liability Insurance

Redressal of

grievances under the

Liability Insurance :

An overview PGDM Graduate
Naina Garg

Insurance Business Management
BIMTECH

As public liability insurance became integral to modern business risk management, the expectation
was that insurers would offer not only financial protection but also prompt and fair resolution in
times of distress. However, the ground reality often paints a different picture. Despite purchasing
policies with the intent of securing peace of mind, many policyholders-particularly small businesses-
experience frustration and uncertainty when filing claims.

I nsurance, at its core, is a promise-a promise of delivery-it was a reminder that businesses are accountable
for the promises they make.
protection when life takes an unexpected turn. Yet,
when that promise is delayed or denied, it does not
Some stories are far more tragic. In Pune, two young
just break trust; it can break lives and livelihoods.
brothers drowned in a resort pond that had inadequate
Imagine this: a family walks into a bustling bakery in safety measures and poor supervision. What was supposed
Muvattupuzha, Kerala, expecting nothing more than an to be a family holiday turned into an irreparable loss. The
evening snack. Hours later, they are admitted to the hospital Kerala Consumer Forum later ordered the resort to pay an
with severe food poisoning. What followed was not just unprecedented Rs.1.99 crore in damages to the grieving
medical trauma but also a long battle for justice, as the parents. The judgment did more than just punish negligence-
family sought compensation for their suffering. The it reminded the industry that lives cannot be replaced, but
Ernakulam District Consumer Commission eventually justice can ensure accountability.
ordered the bakery to pay Rs.50,000 for negligence, making
it clear that businesses cannot hide behind silence or delay And it is not only India. In London, a café owner watched in
when lives are at stake. horror as a customer slipped on a wet floor and suffered
grave injuries. Instead of quick relief through insurance, the
In another case, the failure of a restaurant to deliver an owner faced delays, endless paperwork, and silence from
Onam Sadya feast to a customer's home might sound trivial the insurer, forcing escalation to the Ombudsman. Similarly,
at first glance. But in Kerala, Sadya is not just food-it is in another UK restaurant, a diner slipped on a spilled dessert.
culture, pride, and identity. The customer, left embarrassed Staff had been alerted but failed to act. The insurer dragged
in front of guests, approached the Consumer Court, which its feet until legal intervention finally forced payment of
recognized this emotional attachment and ordered the £2,600.
restaurant to pay Rs.40,000 in damages, along with a refund
of the feast cost. This was not merely about late food These stories echo a landmark moment in legal history:

18 October 2025 The Insurance Times