Page 20 - The Insurance Times October 2025

Ward v Tesco Stores Ltd (1976). When a customer slipped denials in claims settlement are becoming routine issues.
on spilled yogurt, Tesco argued they had a proper cleaning Documentation complexity, varying interpretations of
system. The court disagreed, ruling that the very presence wordings, and inconsistent customer service often lead to
of the hazard was proof of negligence. The principle of res complaints needing formal redressal.
ipsa loquitur-"the thing speaks for itself"-was applied, forever
cementing the duty of businesses to ensure safety and In the United Kingdom and many other countries, the scale
insurers to honor liability swiftly. of liability exposure is considerable. The Association of British
Insurers (ABI) states that UK insurers settle more than £3.5
What unites these stories-from Kerala's food poisoning case billion a year in liability claims, reflecting the prevalence of
to Tesco's yogurt spill-is not the accidents themselves, but use and dependency on such insurance products. With
what followed: delays, disputes, and denials. The pattern is growing volumes of claims, so grows conflict-particularly
universal. Businesses buy liability insurance for peace of where companies perceive the insurer response as poor or
mind, but when insurers falter in grievance redressal, that slow. To react, regulatory bodies instituted formal grievance
peace shatters. redress mechanisms. The UK's Financial Ombudsman Service
(FOS), for example, provides policyholders with the
Even with such strong legal precedents and documented opportunity to escalate complaints in case of non-resolution
frameworks, policyholders today continue to encounter of issues within eight weeks by insurers. FOS releases
significant impediments when seeking redress under liability anonymized decisions on cases and seeks to settle disputes
insurance. Almost every insurer in India now boasts of impartially and without charge for the complainant.
grievance cells, online portals, toll-free numbers, and
escalation matrices. Yet, as reflected in Ombudsman data, A similar situation prevails in India, where liability insurance
the reality tells another story: more than 50,000 complaints is picking up pace across industries. Figures from the General
were filed in FY 2023-24 alone, and nearly one-third involved Insurance Council indicate liability insurance premium in
delays or disputes over claim repudiation. The system, India exceeded Rs.2,000 crore in FY 2022-23, indicating
though elaborate on paper, too often collapses under its increasing legal awareness among companies. To
own weight in practice-marked by prolonged processes, lack acknowledge the increasing grievances, the Insurance
of transparency, and communication gaps. Regulatory and Development Authority of India (IRDAI)
made it mandatory for each insurer to have a Grievance
The irony is sharp: an industry designed to protect against Redressal Officer (GRO), keep complaint-resolution
risk frequently transfers that very risk back to the insured timelines, and provide escalation mechanisms via the
through bureaucratic hurdles. Policyholders find themselves Integrated Grievance Management System (IGMS).
not only fighting for compensation but also fighting the
system meant to safeguard them. Until grievance redressal Even with these processes, grievance settlement is not
evolves into a mechanism that is not only structured but also always smooth. Real-life examples illustrate this disconnect.
swift, humane, and transparent, the promise of liability For instance, a customer in a UK restaurant who fell on
insurance will remain half-kept-a shield that exists in theory, dropped dessert was awarded £2,600 compensation-but
but wavers at the moment of impact. only after the restaurant's insurer dithered and the case was
pursued through legal aid. Even in situations of obvious
A Historical Perspective on Public negligence, such delays reflect systemic inefficiencies in the
response of insurers. These judgments highlight that it is just
Liability Insurance
the starting point to have an insurance policy; the
As public liability insurance became integral to modern effectiveness of grievance redressal ultimately decides how
business risk management, the expectation was that safe the policy actually is.
insurers would offer not only financial protection but also
prompt and fair resolution in times of distress. However, the This is not a recent issue. The 1976 case of Ward v Tesco
ground reality often paints a different picture. Despite Stores Ltd is still one of the most heavily cited precedents in
purchasing policies with the intent of securing peace of mind, occupiers' liability law. Mrs. Ward fell over yoghurt which
many policyholders-particularly small businesses-experience had been spilled in a Tesco store. Though Tesco asserted
frustration and uncertainty when filing claims. Whether it regular floor inspections were carried out, they could not
is a café owner dealing with third-party injury case or a demonstrate this sufficiently in court. Invoking the doctrine
contractor dealing with property damage claims, delays and of res ipsa loquitur-"the thing speaks for itself"-the court held

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