Page 421 - IC38 GENERAL INSURANCE

The premium is based on the AOA (Any One Accident) limit and the turnover of
the client. A special feature of this policy is that the insured has to pay
compulsorily an amount equal to the premium as contribution to Environment
Relief Fund. If large numbers of third parties are affected and the total amount
of relief payable exceeds A.O.A. limit, the balance amount will be paid by the
fund.

2. Public Liability Policy (Industrial / Non-industrial Risks)

This type of policy covers liability arising out of fault / negligence of the
insured causing third party personal injury or property destruction [TPPI OR
TPPD].

There are separate policies covering industrial risks as well as non-industrial
risks like those affecting hotels, cinema halls, auditoriums, residential premises,
offices, stadiums, godowns and shops. It covers the legal liability to pay
compensation including claimant‟s costs, fees and expense according to Indian
Law, in respect of TPPI/TPPD.

The policy does not cover:

a) Products liability
b) Pollution liability
c) Transportation and
d) Injuries to workmen / employees

3. Products Liability Policy

The demand for products liability insurance has arisen because of the wide
variety of products (e.g. canned food stuff, aerated waters, medicines and
injections, electrical appliances, mechanical equipment, chemicals etc.) that
are today manufactured and sold to the public. If a defect in the product causes
death, bodily injury or illness or even damage to the property of third parties, it
could cause a claim to arise. Product liability policies cover this liability of the
insured.

Cover is available for exports as well as domestic sales.

4. Lift (Third Party) Liability Insurance

The policy provides indemnity to owners of buildings in respect of liabilities
arising out of the use and operation of lifts. It covers legal liabilities for:

a) Death / bodily injury of any person (excluding employees of the insured)
b) Damage to property (excluding insured‟s own or employee‟s property)

The premium rates depend upon the limit of indemnity, any one person, any
one accident and any one year.

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