Page 171 - Liability Insurance IC74
P. 171
Guide for Liability Insurance
Employees.
(ix) Limit of Indemnity required in respect of Any One
Accident.
(x)Policy period required
(xi) Declaration and Signature from the Proposer
(b) Describe Products Guarantee Policy.
Ans. Product Guarantee Policy covers the Liability arising
out of any product guarantee. Manufacturers often
guarantee their product for a specified period and replace
or repair defective parts during the guarantee period.
The costs of repair, replacement etc are actually
business risks and cannot be covered under an insurance
policy, as they would require underwriting a
manufacturer's technical skills and know-how.
Special exclusions in the Product Liability Policy relates
to protect damage ,product repair or replacement,
product recall, product guarantee, product performance.
However, some of these liability risks are underwritten
in small section of the insurance market in UK , USA
and other developed countries.
These are not commonly insured but are restricted to
special cases subject to rigorous risk assessment and
strict underwriting terms. The products guarantee policy
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