Page 10 - Liability Insurance IC74

The Insurance Times

Q1. Describe the 3 main phases in the processing of
claims for third party fatal injuries under public
liability policy.

Ans. The three main phases in the processing of claims for
third party fatal injuries under public liability policy are :
a) Application for claim for relief has to be made to
the collector, who after holding an enquiry may make
an award determining the amount and specifying to
whom it should be paid.

b) The insurer who is required to pay the relief, shall
deposit the award within thirty days of
announcement. If not deposited, the Act provides
that the amount can be recovered from the
insurers as arrears of land revenue or as of public
demand.

c) The Rules provide that in awarding the relief the
Collector shall insure that the maximum liability of
the insurers under the policy does not exceed the
limits stipulated in the Act, viz Rs. 5 crores (a.o.a)
and Rs. 15 crores (a.o.y).

Any award in excess of these limits are met from the
Environment Relief Fund. If the award exceeds even
the insurance and relief fund together, the excess has
to be made good by the owner.

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