Page 45 - Liability Insurance IC74
P. 45
Guide for Liability Insurance
disregard of safety considerations when shown. These
are also called exemplary damages.
A structured settlement, which is payment of damages
in instalments rather than compensation as a lump sum
is now a common feature of liability claims in the US
and UK. A structured settlement is a process by which
a defendant or his insurance pay damages over a period
of time, usually through arrangement of annuity
schemes.
Q3. (a) Mention the factors taken into account in
arriving at the rates of premium for products
liability insurance for domestic sales.
Ans. The rates of premium are based on the following factors:
(i) the product (as far classification of risk of groups)
(ii) turnover
(iii) limit of indemnity -any one year
(iv) ratio of limit of indemnity - any one accident to any
one year.
There may radiations based on the individual insurance
company's perceptions of risk and the products filed
under the IRDA file & use guidelines.
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