Page 110 - Liability Insurance IC74

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employer. The act should not be foreign to the
employment.

(b) Mention 2 exclusions under the policy which
can be covered at extra premium.
Ans. The following two exclusions can be covered on payment
of extra premium:
(i) The insured's liability to employees of contractors

to the insured.

(ii) Any compensation for diseases mentioned in Part
C of the Schedule III of the Workmen's
Compensation Act - 1923, which have been brought
within the scope of that Act by the Workmen's
Compensation (Amendment) Act, 1959.

Q7. (a) Why is Excess Loss Treaty insurance used
for Liability insurance ?
(b)Explain how this treaty operates ?

Ans. Repeat of Q10 of Nov 2008

Here, the Reinsurer pays to the Company the ultimate
net loss in excess of a particular pre-decided amount,
arising out of any one claim or series of claims due to
the same cause, under public liability and employer's
liability policies issued by the Company, whether direct
or by way of reinsurance. The ceding company decides

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