Page 240 - Liability Insurance IC74

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property including loss of use.

Indemnity in Product liability policy - product liability
policy provides that the company will indemnify the
insured: (i) against a legal liability to pay
compensation(including claimants costs, fees and
expenses) and (ii) in accordance with the law of the
country.

The cause provides that the indemnity does not apply :
(i) in respect of any judgement, payments, settlements
made in countries which operate under the laws of US
or Canada. (ii) to any order made anywhere in the world
to enforce such judgement. (iii) unless the insured has
requested that there shall be no such limitation and has
accepted the terms of North American Jurisdiction
Extension Clause which forms part of the policy.

(c) Professionals are becoming risk conscious ?
Explain the need for a suitable insurance for them.

Ans. `Professional indemnities are designed to provide insurance
protection to professional people such as doctors,
solicitors, chartered accountants, architects etc against
their legal liability to pay damages arising out of
negligence in the performance of their professional
duties. The need for insurance protection to cover the

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