Page 25 - Liability Insurance IC74

Guide for Liability Insurance

performed in breach of instructions, the employer may
still be liable for the consequences. This is based on the
principle that the employer is financially stronger than
the employee and is better able to bear damages. The
employee, of course is personally liable for his own
negligence.

(b) Principal's liability for negligence of contractors -
A principal or an employer is not liable for the negligence
of an independent contractor or of his employees arising
in connection with the performance of the contract.

It does not follow, of course, that the principal can pass
on to the independent contractor any duty of care that
attaches to him under Common Law.

The principal's liability for contractor's negligence,
may arise in the following circumstances:
(i) where he retains some control over the contractor

or provides labour and/or machinery.
(ii) where the contractor's work involves extra

hazardous acts etc.

The liability may be joint or several, depending upon the
circumstances. In practice, the principal is held liable
for contractor's negligence.

Sashi Publications - www.sashipublications.com 21

Copyright@ The Insurance Times. 09883398055 / 09883380339