Page 241 - Liability Insurance IC74

Guide for Liability Insurance

legal liability is felt by the professionals because of the
increasing claims consciousness on the part of their
clients. Professional people, like everybody else, are
prone to commit errors in conducting their business,
particularly so in the modern conditions of life which
are more complex and stressful. If a person holds himself
out as an expert, he is expected to show a high degree
of skill than the average people, so the basis of liability
is professional negligence which presupposes the
existence of a duty of care, a breach of the duty of loss
or damage caused by the breach.

Q6. Attempt any 2:
(a) Umbrella policies in Liability policies - Umbrella
policies cover more than one class of business. This
kind of policy originated in the USA and was designed
to provide uniform standard of cover amongst various
states having different regulations. The policy operates
in two parts: (a) the first part ease of follow-up of the
DIL cover over the schedule of underlying policies. (b)
the second part is a broad form general liability cover
that stands alone and operates on the DIC basis around
the first part of the policy.

(b) Critically examine the 'claims made basis' vs
'occurrence basis' of Liability Policies - under the

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