Page 234 - Liability Insurance IC74

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(c) Tort liability - Apart from the purchaser, who is a
party to the contract, claims for injury or damage may
also be preferred by a member of the public who has no
contractual relationship with the manufacturer,
wholesaler or retailer, e.g a relative or friend of the
purchaser. Liability in such cases arises under the law
of torts and the principles of the Law negligence govern
the situation.

English Case Donoghue Vs Stevenson illustrates the
law in this regard. Plaintiff drank from a bottle of ginger
beer bought by a friend and fell ill as it contained remains
of a snail. The defendant manufacturer was held liable.
Lord Atkin's judgement made it clear that the
manufacturer has a duty to take care in his process of
manufacture. It was also established that persons other
than the purchaser have a direct right of recovery against
the manufacturer which arises in tort. The English Law
has expanded the term 'manufacturer' to include
repairers, assembler, erectors etc.

(d) Cross liability - this clause is incorporated in the
policy where more than one Insured is covered under
the Policy.

In certain circumstances, the insured persons can have

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