Page 128 - Liability Insurance IC74

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Common Law or Workmen's compensation Act.

If the insured is held under Common Law for negligence,
the policy will indemnify him in respect of the amount
of damages awarded against him. To the extent that
there is no monetary limit to the amount of damages
awarded under Common Law, it may be stated that the
employer's liability policies provide unlimited indemnity.

In actual practice however, claims against employers
under common Law are very rare. If the employer's
liability arises under Workmen's Compensation Act, the
damages awarded are according to the scale prescribed
in the Act, and the employer is indemnified accordingly.

The current practice is to include the legal costs and
expenses incurred by the insured in the indemnity
provided.

Q6. (a) Give an outline of premium rating process
under public liability policy for hotel.

Ans. The various factors which influence the premium for
non-industrial risks are:
(i) the type of construction the hotel, materials used
for the construction of the hotel, use of plate glass
or not

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