Page 246 - Liability Insurance IC74

The Insurance Times

and mergers with foreign entities, more specifically
American and Western European corporations have
resulted in a demand for the product.

There is a strong public/shareholder/consumer
movement in the countries of Western Europe and North
America. All business organisations are subject to close
scrutiny in their daily operations by these public entities
and immediately taking to task in the event of any
breaches on malpractices in contravention to the laws/
public policies of the respective countries.

The demand of the public in home countries thus puts
pressure on an organisation to ensure fair business
practices and equally keen in on organisations and
countries where they do business or with whom they
may have an association. Hence all collaborations with
Indian companies require the protection of the foreign
entity against any legal liability that may arise because
of breaches committed by the local Indian entity. This
resulted in the demand for CGL policy.

Coverage A : (i) bodily injury and property damage
liability - the policy pays if the insured is legally obliged
to pay damages for bodily injury or property damage
covered under the policy. This occurrence must take

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