Page 104 - Liability Insurance IC74

The Insurance Times

Q3. (a) Mention 6 exclusions (other than war and
nuclear risks) of Public Liability policy for
industrial risks. (b)Give reasons for each
exclusions.

Ans. (i) Contractual Liability Exclusion - public liability
insurance is only concerned with liabilities arising
under law. Any other wider liabilities which the
insured assumes under contract are not covered.

(ii) Acts of God which may cause catastrophic loss is.
However, earthquake risk may be covered on
payment of extra premium.

(iii) Noncompliance of rules and regulations. If
insurance coverage is provided for such liability, it'd
be contrary to public policy and against public
interest. Further, the insured has to be clear that all
the statutory provisions have been complied with.
The exclusion applies only when the non-compliance
is intentional .

(iv) Damage refers to damage of tangible property, not
of intangible property like loss of goodwill or loss of
market, etc.

(v) Liability arising out of fines, penalties, punitive

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