Page 233 - Liability Insurance IC74

Guide for Liability Insurance

Q3. Attempt any 3:
(a) Mention the method of reinsurance useful for new

class of business in liability - Quota share treaty
is an useful method of reinsurance for new class
of business in liability. This involves a
considerable loss of premium income to the ceiling
company because the ceding company is obliged
to cede under the treaty even policies which can
be safely retained by it. However, since the new
class of business is yet to acquire sufficient
experience,this methods become useful for them.
(b) What is liability faced by MTO ?
Ans. Ref Q9 of May 2011
.
The policy provides indemnity where the insured is liable
to:
(i) a customer or third-party for loss or damage to cargo

in the insured's care, custody or control.

(ii) a third party for death, bodily injury or damage to
property.

(iii) a customer or third-party for errors and omissions
or professional negligence.

(iv) an Authority for fines and duty.

Sashi Publications - www.sashipublications.com 229

Copyright@ The Insurance Times. 09883398055 / 09883380339