Page 197 - Liability Insurance IC74

Guide for Liability Insurance

on behalf of the four companies. The cover is arranged
in layers as follows:
Layer I Rs.20 crores in excess of Rs.10 crores.
Layer II Rs.30 crores in excess of Rs.30 crores.
Layer III Rs.40 crores in excess of Rs.60 crores.

The deductible or underlying limit of Rs.10 crores is
shared equally by GIC and the four companies.
Compulsory Public Liability (Act Policy) business is
shared equally by GIC and the four companies up to a
specified limit. Professional Indemnity and Directors and
Officers Liability business is ceded to Market Surplus
Miscellaneous Accident Treaty. Workmen's
Compensation insurance business is protected by an
excess of loss cover granted by GIC to protect the net
retention of the companies (GIC - 20%, companies -
80%, i.e 20% each)

The insurance policy has to be taken for an amount not
less than the amount of the capital of the undertaking
handling any hazardous substance and owned or
controlled by the owner. The maximum aggregate liability
of the insurer to pay really under an award to the several
claimants arising out of an accident cannot exceed Rs.
5 crores and in case of more than one accident during
the currency of the policy or one year, whichever is

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