Page 96 - Liability Insurance IC74

The Insurance Times

Where the monthly wages of a workman exceed
Rs.4000,the monthly wage will be used as Rs 4000 only
for calculations. However, the monthly wages for
calculation purpose has been increased to Rs.8000 w.e.f
from 31.05.2010.

For temporary disablement, whether total or partial, the
amount of compensation is a half monthly payment equal
to 25% of the monthly wages of the workman.

Q10. What is Excess of loss Reinsurance ? Explain how
Ans. it operates in Liability insurance with the help of
an example ?
Here, the Reinsurer pays to the Company the ultimate
net loss in excess of a particular pre-decided amount,
arising out of any one claim or series of claims due to
the same cause, under public liability and employer's
liability policies issued by the Company, whether direct
or by way of reinsurance.

The ceding company decides on the maximum amount
of loss due to any one cause/event that is prepared to
bear for its own net account. If the ultimate net loss is
arrived at after deduction of all, recoveries in respect
of salvage or otherwise, and all claims upon other

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 92

Copyright@ The Insurance Times. 09883398055 / 09883380339