Page 13 - Liability Insurance IC74

Guide for Liability Insurance

(iv) Due to handling of hazardous substances.
(v) As provided for in the public Liability Insurance Act

and the Rules framed there under; and
(vi) Subject to terms, exceptions and conditions of the

policy.

(b) How is the premium amount arrived at under this
policy?

Ans. The premium was based on the Limit of Indemnity
'any one accident' and the turnover. The premium rates
were based on a market agreement entered into by
the four public sector insurers when the Law came
into place.

Currently insurers are charging premium as per the
rating guidelines filed by them with the Indian
Regulator.

(c) Who may be exempted by the Central
Government from compulsory insurance?

Ans. The following may be exempted from compulsory
insurance by the Central Government :
a) The Central Government.
b) Any State Government.
c) Any corporation owned or controlled by the Central
or State Government or
d) Any local authority.

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