Page 26 - Insurance Times February 2016

or damage in respect of which the claim has been made a) Guide Rate of Indemnity Premium
was due to any wrongful act, neglect or default of any
person. Indemnity Limit Rate % Indemnity Limit Rate %
Upto Rs1.0 lac 0.70 Upto Rs50 lac 0.95
Accordingly the "Operative clause" and "Indemnity Clause" Upto Rs2.5 lac 0.75 Upto Rs100 lac 1.00
are to be worded properly in the policy. These two clauses Upto Rs5.0 lac 0.80 Upto Rs250 lac 1.05
are given hereinafter, Upto Rs10 lac 0.85 Upto Rs500 lac 1.10
Upto Rs20 lac 0.90
2. Exemption from Statutory Provision for PLI
policy [Sec 4(3)]: b) Turnover Loading

Sec.4 (3) of the Act provides that the Central Government Turnover Rate
may, by notification, exempt from the operation of sub-
section (1) any owner, namely:- Upto Rs1crore Re 0.12 % & Min.
a) the Central Government; Rs 1200

b) any State Government, Beyond Rs1cr upto Rs5cr Rs 1200+0.084%

c) any corporation owned or controlled by the Central Beyond Rs5cr upto Rs10cr Rs 4560+0.072%
Government or a State Government; or
Beyond Rs10cr upto Rs50cr Rs 8160+0.060%
d) any local authority:
Beyond Rs50cr upto Rs100cr Rs 32160+0.048%
Provided that no such order shall be made in relation to
such owner unless a fund has been established and is Beyond Rs100cr upto Rs250cr Rs 56160+0.036%
maintained by that owner in accordance with the rules
made in this behalf for meeting any liability under sub- Beyond Rs250cr upto Rs500cr Rs 1101600+0.010%
section (1) of section 3.
Beyond Rs500cr upto Rs1000cr Rs 135160+0.0075%

Beyond Rs1000cr uptoRs2000cr Rs 172660+0.0050%

Beyond Rs2000cr Rs 222660+0.0025%

3. Premium Computation; 4. Hazardous Substances (Notification dt 24.3.92
It has two components- issued by Ministry of Environment& Forests)

a) Indemnity Premium based Indemnity Limit (AOA) and a) Toxic Chemicals Extremely & highly toxic
b) Flammable chemical Flammable gases & liquids
b) Turnover Loading based Turnover amount. c) Explosives Chemicals explosive on flame,
Examples heat
Turnover means; for Manufacturing units -Annual Gross Toxic Chemicals
Sales of all goods including all levies and taxes; for Godown Amition, Benzidine, Benzidine
Warehouse owners-Total annual rental receipts; for Highly Reactive Subs salts,
Transport operators-Total annual freight receipts and Crimidine, Fluroacetic acid,
others -Total annual gross receipts. Explosive Chemicals salts,
Chloromethyl, Ammonia,
Chlorine etc
Acetylene,Hydrogen,
Propylene oxide
Methyl ethyl, Liquid oxygen
etc.
Cellulose nitrate, Barium
azide, Mercury fulminate,
Nytroglycrine

26 The Insurance Times, February 2016

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