Page 27 - Insurance Times February 2016
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5. Operative Clause:
The operative clause of this policy is worded as follow;
‘Whereas the Insured named in the schedule hereto and
carrying on the business described in the said schedule has
applied to the XYZ General Insurance Company Limited
(hereinafter called 'the Company') for the indemnity
hereinafter contained and has made a written proposal and
declaration which shall be the basis of this contract and is
deemed to be incorporated herein and has paid the
premium as consideration for or on account of such
indemnity’.
NOW THIS POLICY WITNESSED that subject to the terms the notice of the Collector that an accident has occurred
exceptions and conditions contained herein or endorsed at any place within his jurisdiction, he shall verify the
hereon the Company will indemnify the Insured or Owner occurrence of such accident and cause publicity to be given
against their statutory liability under the Public Liability in such manner as he deems fit for inviting applications
Insurance Act, 1991 to pay compensation including under section 6(1).
claimant's costs, fees and expenses anywhere in India, in
accordance with Indian Law. So after the verification of the accident by collector, there
is no need for the insurance company to arrange for any
6. Indemnity: further investigation examine the admissibility of the claim.
The Indemnity clause of this policy is generally worded as 2. Application to the Collector for claim for relief
follow: (Sec.6)
The Company agrees, subject to terms, conditions and
exclusions herein contained or endorsed or otherwise The third party victim in the accident shall make application
expressed herein, to indemnify the Insured or Owner against for claim under the PLI Act 1991 to the collector in
statutory liability arising out of Accidents occurring during accordance with provisions of Sec.6 of the Act which
the currency of the Policy due to handling of hazardous provides that;
substances as provided for in the Act and rules framed (1) An application for claim for relief may be made-
thereunder.
a) by the person who has sustained the injury;
The indemnity only applies to claims, arising out of b) by the owner of the property to which the damage
Accidents occurring during the Period of Insurance, first has been caused;
made in writing against the Insured and notified to the
Company by the Insured in writing during the Policy Period c) where death has resulted from the accident, by all
or Extended Reporting Period. or any of the legal representatives of the
deceased; or
Claims Management d) by any agent duly authorised by such person or
owner of such property or all or any of the legal
Pertinently the PLI Act 1991 provides required direction, representatives of the deceased, as the case may
rules and procedures in respect of settlement of claim be:
under PLI Act insurance. The insured/ claimant and the
insurer are required to follow the said directions and rules Provided that where all the legal representatives of the
in respect of claims as and when occurred. These directions deceased have not joined in any such application for
and rules are cited / explained below; relief, the application shall be made on behalf of or for
the benefit of all the legal representatives of the
1. Verification of accident by collector (Sec.5) deceased and the legal representatives who have not
so joined shall be impleaded as respondents to the
Sec. 5 of the PLAI Act provides that whenever it comes to application.
The Insurance Times, February 2016 27
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