Page 63 - Liability Insurance IC74

Guide for Liability Insurance

to 50% of AOA limit and the discounts may range, on a
scale, from 2.5% to 25%.

If the insured has both the 'Act' policy, that is, the
compulsory insurance policy under the provisions of the
Public Liability Insurance Act, 1991 as well as P.L policy,
on the same premises, a discount equivalent to a certain
percentage of the premium paid on the 'Act' policy is
allowed under the P.L policy.

Q6. (a) Describe the cover under the Public Liability
Insurance Act policy.

Ans. Repeat of Q3(a) of May 2007

(b) Mention the exclusions under this policy.
Ans. The policy excludes the following liabilities :

(i) arising out of wilful or intentional and non-
compliance of any statutory provisions. The insured
has to declare in the proposal form that all the
statutory provisions are complied with. Non-
compliance would mean breach of utmost good faith.

(ii) in respect of findings, penalties, punitive and
exemplary damages. Payment of claims for fines,
penalties etc is contrary to public policy, hence not
covered. The policy place only in respect of statutory

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