Page 213 - Liability Insurance IC74

Guide for Liability Insurance

(v) Instead of 'Sum Insured', a limit of indemnity is
stated in general liability policies. In employer's
liability policies no limit of indemnity is incorporated.

(vi) Jurisdiction clause is important in liability insurance.
Cause of action arise anywhere in the world at
insurers restrict their liability to court within specific
to restrictions. E.g, foreign tourists any insured at
tourist locations but choose to file for compensation
in their respective country ,the clause ensures that
the case is filed locally or as agreed between the
insured and the insurer.

(b) Explain in detail Ryland vs Fletchers - Ref Q8(c)
of May 2008
The principle of strict liability made an important
departure from the law of negligence then prevailing as
a result of a court ruling. The facts of the case were: a
reservoir was constructed on the land of Ryland by
independent contractors. When the reservoir was filled
with water, it burst through the weak points and through
the underground shafts and passages and flew into the
Fletcher's land flooding the mines. According to the
principles of common law then prevailing, there was no
personal negligence on Ryland's part nor was he
vicariously liable for the acts of his independent
contractor.

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