Life and General Insurance

  

Why insure?

This policy covers the amount which the insured becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury, loss or damage to the property belonging to a third party. The legal cost and expenses incurred in defending the case with prior consent of the insurance company are also payable subject to certain terms and conditions.

One can insure more than one unit situated in different locations under a single policy.

The policy offers a benefit of Retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier period after first inception of the policy, also become payable.

 

What is covered?

• Loss arising out of any covered claim brought against the insured.

• Defence costs incurred, with prior written consent of the Insurance Company.

 

Type of Policies

• Public Liability Non Industrial Risk - For non-manufacturing units such as offices, hotels, cinema houses, hospitals, schools etc.

• Public Liability Industrial Risk - For manufacturing units such as factories, godowns, warehouses, etc.

• Public Liability Insurance Act 1991 - A mandatory policy to be taken by business units handling hazardous substances as per Public Liability Insurance Act, 1991.

 

Add on covers

The Public Liability Policy can be extended to cover the following risks on payment of an additional premium.

• Natural calamities like flood, earthquake etc.

• Pollution Risk subject to NOC from Pollution Control Board

• Transportation Risk

 

How to select the sum insured?

In Public Liability Policy, the sum insured is referred to as Limit of Indemnity. This limit is fixed per accident and per policy period which is called Any One Accident (AOA) limit and Any One Year (AOY) limit respectively. The ratio of AOA limit to AOY limit can be chosen from the following :

1. 1:1

2. 1:2

3. 1:3

4. 1:4

The AOA limit which is the maximum amount payable for each accident should be fixed taking into account the nature of activity of the insured and the maximum number of people who could be affected and maximum property damage that could occur, in the worst possible accident in the insured's premises.

In the case of Public Liability Insurance Act 1991, the AOA limit should represent the paid up capital of the company subject to maximum of Rs.5 crores. The AOY limit is fixed at 3 times the AOA limit (Max.Rs.15 Crores).