Page 155 - Liability Insurance IC74

Guide for Liability Insurance

capacity of Director or Officer of the Company but
only when and to the extent that the Company shall
be quiet or permitted to indemnify the Directors or
Officers pursuant to the law, common or statutory,
or the Memorandum and Articles of Association.

This coverage is known as Company
Reimbursement Provision. It may also include
indemnification of the Directors and Officers by the
Company for any litigation in respect of the latter's
breach of duty in the conduct of the Company's
affairs if such an obligation is expressed in the
Company's Articles of Association or in an
agreement between the Company and the
concerned director or officer.

Q9. Explain the clauses under Public liability policy
(Industrial/Non-Industrial).

Ans: (a) Notification Extension Clause - This clause
provides that the insured may notify the Company in
writing during the policy period, of any specific event or
circumstances which may give rise to a claim in the
future, that is, after the expiry of the policy period.
Acceptance of such notice by the Company means that
the Company has agreed to deal with such claims which

Sashi Publications - www.sashipublications.com 151

Copyright@ The Insurance Times. 09883398055 / 09883380339