Page 99 - Liability Insurance IC74

Guide for Liability Insurance

Q1. Processing of Liability Claim is done in 3 phases.
Describe these phases.

Ans. Repeat of Q1 of May 2007
a) Application for claim for relief has to be made to
the collector, who after holding an enquiry may make
an award determining the amount and specifying to
whom it should be paid.

b) The insurer who is required to pay the relief, shall
deposit the award within thirty days of
announcement. If not deposited, the Act provides
that the amount can be recovered from the insurers
as arrears of land revenue or as of public demand.

c) The Rules provide that in awarding the relief the
Collector shall insure that the maximum liability of
the insurers under the policy does not exceed the
limits stipulated in the Act, viz Rs. 5 crores (a.o.a)
and Rs. 15 crores (a.o.y).

Any award in excess of these limits are met from the
Environment Relief Fund. If the award exceeds even
the insurance and relief fund together, the excess has
to be made good by the owner.

Q2. What is the meaning of :

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