Page 85 - Liability Insurance IC74

Guide for Liability Insurance

explained. Injury means death, bodily injury, illness
or disease.

(vi)Liability arising out of fines, penalties, punitive
damages is excluded on the grounds of public policy.
The purpose of fines, penalties, punitive damages
etc is punishment and deterrence, hence insurance
cannot be provided.

(vii)War and nuclear risks.

(viii) Uninsurable risks under normal commercial
insurance policies are excluded.

(ix) Third party liability arising out of motor vehicles
which are compulsorily insured under the Motor
Vehicles Act, 1988. However, under 4 specified
circumstances, coverage is provided.

(x) Liability for claims arising out of transportation of
hazardous substances. This can be covered on
payment of extra premium.

(xi) Liability arising out of aircraft, watercraft or
hovercraft.

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