Page 227 - Liability Insurance IC74

Guide for Liability Insurance

Q1. Attempt any 3:
(a) What is the meaning of 'Turnover' for
manufacturing units as per PLI Act, 1991 ?

Ans. Annual Turnover is an indication of the size of the size
of the manufacturing activity and the services provided
by the proposer. A comparison of the Turnover with the
previous years elucidate whether the business is static
or it is increasing. A rapid increase may often be taken
as adverse feature as it can result in inadequate
management control. Entire Annual Gross Sales
Turnover including all levies and taxes of manufacturing
units handling hazardous substances as defined in the
Public Liability Insurance Act, 1991. For the purpose of
insurance, the term 'unit' means all operations carried
out in the manufacturing complex in one location.

Turnover is an important factor in rating of liability
proposals.

(b) State 3 situations when employer is not liable for
injury to workmen - Repeat of Q7 of May 2007 ,
Q7(d) of May 2009 & Q2(d) of May 2010
The employer is not liable in respect of any injury caused
by an accident which is directly attributable to:

(i) the workmen having been under the influence of

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