Page 193 - Liability Insurance IC74

Guide for Liability Insurance

damages is excluded on the grounds of public policy.
The purpose of fines, penalties, punitive damages
etc is punishment and deterrence, hence insurance
cannot be provided.

(vii)War and nuclear risks.

(viii) Uninsurable risks under normal commercial
insurance policies are excluded.

(ix) Third party liability arising out of motor vehicles
which are compulsorily insured under the Motor
Vehicles Act, 1988. However, under 4 specified
circumstances, coverage is provided.

(x) Liability for claims arising out of transportation of
hazardous substances. This can be covered on
payment of extra premium.

(xi) Liability arising out of aircraft, watercraft or
hovercraft.

(xii) Liability for damage to property owned by the
insured or hired by him or in his custody. These can
be covered under material damage property.
However, there are three exceptions where the
liabilities covered: (a) damage to property
temporarily occupied or worked upon by the insured
excluding defective workmanship. (b) damage
employees' or visitors' personal effects. (c) Premises
tenanted by the insured.

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