Page 33 - Liability Insurance IC74

Guide for Liability Insurance

(iv) causal connection between the breach of duty and
the injury or damage -the injury or damage should
be a consequence of the negligent act. There has
to be a close causal relationship between the breach
of duty and the injury or damage.

An action of negligence can proceed only if there is a
breach of that duty of care which will be determined by
courts with reference to the standard of care expected
by law. Obviously, this is subjective and depends upon
the court's decision.

The degree of care or skill may vary according to
circumstances, and there is no absolute standard.
However, the persons who use dangerous materials like
explosives, fireworks etc have to exercise more care.
Similarly members of learned professions like doctors,
solicitors etc need to exercise greater care.

(b) Directors and Officers liability - This policy is
very popular in U.K, U.S.A and other developed
countries, having been recently introduced in India.
Directors and Officers of Companies hold
positions of trust and they have responsibility to
their company, the shareholder, employees, the
public at large.

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