Page 46 - Liability Insurance IC74

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(b) How are premium rates fixed, if exports are
also covered under the policy.

Ans. The rates of premium depend upon:
(i) Group of risk
(ii) Turnover
(iii) Limit of indemnity - AOY
(iv) Ratio of limit of indemnity - AOA to AOY

Products are classified into 7 groups depending on risks.
Lowest rates are charged for Group I risks and highest
rates are charged for Group VII risks.

Group I Carpets, clocks and watches
Group II Alcoholic beverages
Group III Fork lift trucks, milk products, soft drinks
Group IV Motor vehicles
Group V Cosmetics, pharmaceutical products
Group VI Motor vehicle tyres and tubes
Group VII Explosives and fireworks, ladders,

scaffolding (metal)

Exports can be covered as an extension of the policy
covering domestic sales or a separate policy can be
issued only for exports. The additional premium is
charged on the premium on indemnity limits plus the
premium on export turnover.

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