Page 212 - Liability Insurance IC74

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date as shown in the Policy Schedule. For e.g, if the
policy is from 1.1.2009 to 31.12.2009 and the policy is
renewed from 1.1.2010 to 31.12.2010, then under the
renewed policy the retroactive date will be 1.1.2009,
which will continue to be the retroactive date under all
subsequent renewals. The retroactive date is always
separately mentioned in the Schedule.

Q6. Answer any 2:
(a) Special features noticeable in Liability Policies -
liability insurances may be distinguished from insurances
of property, by the following special features:

(i) Claims are paid to persons other than the insured,
i.e member of the public all the insured's employees,
as the case may be, but on behalf of the insured.

(ii) The insurance provides indemnity to the insured in
respect of his potential legal liability i.e liability arising
under Common Law or Statutory Law.

(iii) Claims are negotiated and settled with consent of
insurers by the insured who is required by policy
conditions to co-operate with the insurers in this
respect.

(iv) Legal costs of the insured incurred with the written
consent of the insurers are reimbursed under the
policy.

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