Page 235 - Liability Insurance IC74

Guide for Liability Insurance

a claim against each other for injury or damage falling
within the scope of the policy. These are called 'Cross
Claims' and the payment of such claims is provided by
the 'Cross-liabilities Clause'. Each such person is deemed
to be a separate insured as if a separate policy is issued
to that person, subject to the total liability not exceeding
the limit of indemnity stated in the Schedule.

Q4. Attempt any 2:
(a) Briefly state the notification phase of liability
claims - Ref Q9 (a) of May 2010

Ans. A Policy condition provides for early notification of
accident of any claim against the Insured or any event
which may give rise to a claim. Notice is required by
insurers to initiate immediate investigation to gather all
factual information on the basis of the thorough
examination of all circumstances surrounding the claim.

Sooner an investigation is conducted, greater and more
accurate the data can be obtained. Notice is required
even when a formal claim is not made against insured.
There are many events which results in claims in future.
The insurer would like to be in a state of preparedness
to deal with such potential claims. Notification has to
be followed by completion of claim form provided by
the insurers.

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