Page 166 - Liability Insurance IC74

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liability arises when the following essentials are present:
(i) The relationship of master and servant is established.

This may be determined by considering who pays
the wages and who appoints the employee.
(ii) The act is committed in the course of and within
the scope of employment.

Thus, the employer is definitely held liable if negligence
is involve when an employee performs an authorized
act in an authorized way. However, the employer is
usually held liable if the authorized act is performed in
an unauthorized manner or the act was prohibited within
the scope of employment.

Even when the act is performed in breach of instructions,
the employer may still be liable for the consequences.
This is based on the principle that the employer is
financially stronger than the employee and is better able
to bear damages. The employee, of course is personally
liable for his own negligence.

(b) Repeat of Q7 of May 2007 & Q7(d) of May 2009

Principal's liability for negligence of contractors - A
principal or an employer is not liable for the negligence
of an independent contractor or of his employees arising
in connection with the performance of the contract. It

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