Page 62 - Liability Insurance IC74

The Insurance Times

damages are awarded for bodily injury is on the
basis of medical evidence, a fresh action cannot be
brought on the basis of subsequent medical opinion
establishing that the injuries were more serious than
originally agreed.

Q5 (a) Explain the premium rating for the public
liability policy (industrial risks).

Ans. The factors taken into account for determining the
premium are usually :
(i) The ratio of indemnity limits i.e AOA : AOY
(ii) The risk category. All industries are categorised on
the basis of hazards involved and the premium factor
is loaded accordingly.
(iii) The turnover.
(iv) The add-ons.

(b) Mention the discounts in premium available
under this policy.

Ans. Insured can opt for voluntary excess, for which
discounts in premium are granted. Voluntary Excess is
applicable to both (i) death/bodily injury claims and (ii)
property damage claims inclusive of defence costs
arising out of 'AOA'.

Voluntary excess limit may range, on a scale from 5%

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