Page 49 - Liability Insurance IC74

Guide for Liability Insurance

loss. E.g, for accountants, solicitors etc.
(c) Where professional negligence may result in financial

loss and/or bodily injury. E.g, architects.

Basis of liability in negligence means of failure to
exercise our fear, reasonable and competence degree
of skill as judged with reference to the standard expected
of the profession. Negligence arises when there is a
duty of care, a breach of the duty and consequent loss
or damage by the breach.

The duty of care is owed to 2 categories of persons: (i)
those to whom the professional man is under some
contractual or fiduciary relationship.(ii) those to a duty
of care will arise under circumstances. The professional
man is a also liable for the negligence of his employees
arising out of and in the course of their employment.
Liability may also arise under the Consumer Protection
Act.

Q7. Describe the claims procedure for settlement of
fatal claims under workmen's compensation
insurance.

Ans. The workmen's compensation insurance requires the
employer to deposit compensation but within a month
of the event, as the delay in invite interests and penalties.

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