Page 12 - Liability Insurance IC74

The Insurance Times

Policy is stated as limit of indemnity any one accident
(a.o.a) and any one year (a.o.y). It is also subject
to compulsory excess, wherever applicable and also
to voluntary excess.

However, there is no limit of indemnity specified in
respect of the insured's liability under Workmen's
Compensation Act. It is usually the current practice
of the insurers to include the legal costs and
expenses in the limit of indemnity provided in the
policy.

In these days of high costs of litigation, this cover is
really useful, especially in cases where a third party
may resort to litigation to claim damages from the
insured.

Q3.(a) What is the cover provided under the liability
policy issued in respect of Public Liability
Insurance Act 1991 ?

Ans. The cover provided under the liability policy issued in
respect of Public Liability Insurance Act 1991
indemnifies the insured owner against :
(i) The statutory liability
(ii) Arising out of accidents.
(iii) Occurring during the currency of the policy.

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