Page 18 - Liability Insurance IC74

The Insurance Times

(f) Information is elicited to ascertain if the premises
are a factory within the meaning of the Factories
Act.

(g) The full particulars of any circular saws or other
machinery driven by steam, gas, water, electricity,
use of acids, gases, chemicals etc.

(h) Information related to past insurance history, total
wages paid and accidents of employees during the
past 3 years.

Q6.(a) Mention the laws under which liability for
defective products arise?

Ans. The Indian Sale of Goods Act - Under Section 15 of
the Sale of Goods Act, the sellers have a responsibility
to ensure that the goods sold correspond with the
description and if sold by sample, then the goods
corresponds to the sample.

Under Section 16, the seller has an obligation to ensure
that the goods sold are fit for the purpose for which they
are required by the buyer, and if the goods are bought by
description, then they are of merchantable quality.

Section 17 provides that in contracts of sale by sample
the goods shall, not only correspond with sample in
quality, but shall also be free from defects.

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