Page 37 - Liability Insurance IC74

P. 37

Guide for Liability Insurance

The deductible or underlying limit of Rs.10 crores is
shared equally by GIC and the four companies.
Compulsory Public Liability (Act Policy) business is
shared equally by GIC and the four companies up to a
specified limit. Professional Indemnity and Directors and
Officers Liability business is ceded to Market Surplus
Miscellaneous Accident Treaty.

Workmen's Compensation insurance business is
protected by an excess of loss cover granted by GIC to
protect the net retention of the companies (GIC - 20%,
companies - 80%, i.e 20% each)

The insurance policy has to be taken for an amount not
less than the amount of the capital of the undertaking
handling any hazardous substance and owned or
controlled by the owner.

The maximum aggregate liability of the insurer to pay
really under an award to the several claimants arising
out of an accident cannot exceed Rs. 5 crores and in
case of more than one accident during the currency of
the policy or one year, whichever is less, cannot exceed
Rs. 15 crores in aggregate.

Every owner, in addition to the premium has to pay an
equivalent amount to be credited to the Environment

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