Description
This is a PPT about general non life insurance products.
Liability Insurance
Liability insurance is a part of the general insurance system of risk financing. Any insurance against a potential loss due to the insured's liability for injury or damage to others
Salient Features
? Designed to offer specific protection against third
party claims ? Damage caused intentionally and contractual liability are not covered under liability insurance policies ? Types of Damages – ?Bodily Injury ?Personal Injury ?Property Damage
Volunteer (Agent)
? This insurance is designed to cover a volunteer's
actions that may cause physical injury to another, or damage to another's property
? Injury or damage to personal property resulted
from the negligence of the volunteer
Motor third-party insurance
? Statutory requirement under Motor Vehicles Act,
1988 ? Third party insurance does not cover injuries to the insured himself but to the ‘RoW’ who is injured by the insured ? Premiums do not vary with the value of what is being insured because what is insured is the ‘legal liability’ ? Entirely ‘fault-based’ Example – K.Gopal Krishnan vs. Sankara Narayanan
Umbrella Insurance
A catastrophic liability policy that covers liability losses in excess of those covered by any underlying homeowner’s, automobile, or professional liability.
Liability Insurance
Employer’s Liability Coverage Public Liability Coverage Product Liability Coverage Director’s & Professional Officers Liability Insurance Coverage
Employer’s Liability
? Injuries/occupational diseases sustained by
workmen ? Employee’s own negligence also covered ? Compensation as awarded by court of law ? ‘Tariff’ – Rate of premium depending on degree of hazard Example – Sexual Abuse Liability, Workmen’s Compensation
Public Liability Coverage
1. Public Industrial Liability – ? Pollution Risks ? Transportation risks
? Cover for multiple units
? Technical Collaborators liability ?Cannot be issued for unlimited liability ?Premium rates fixed for each hazard group
Public Liability coverage cont…
2. Public Non Industrial Liability
? Non-industrial activities such as hotels,
clubhouses, restaurants, cinemas etc. ? Limit of liability can be selected by insured ? Indemnity limit for any one accident – 25% of annual limit
Public Liability coverage cont…
? Environment Protection Act 1986
? Deals with handling of hazardous
substances ? Toxic substances, highly reactive substances, explosive substances and flammable substances – insurance must if over specified quantities
Product Liability Coverage
? Protect manufacturers from loss, damage to property, body
injury to third party from using the insured’s product.
? Export can be covered, provided domestic sales are also
covered.
? Also covers pollution liability on account of products
covered.
? All expenses incurred on investigation and settlement of
claim are covered by the policy.
Professional Liability Coverage
? Covers legal liabilities arising out of professional services. ? Following professions are included:
? Chartered Accountants ? Lawyers ? Engineers and Architects ? Doctors and Medical Establishments ? Financial/ Management Consultants
? Limit of liability can be selected by insured.
Professional Liability cont…
? Only 4 claims are admitted per year. ? Defense of lawsuit for damages can be taken over
by insured.
? Claim arising during policy period but reported 90
days after the expiry of policy is a claim filed in
good time.
Director’s and Officer’s Liability
? Issued to an individual/organization for benefit of
Directors/Officers to indemnify against loss on account of decisions taken by them.
? Also indemnifies Directors/ Officers against losses arising
from wrongful act done in their official capacity.
? Also provides for expenses incurred by shareholder of the
company for a claim against Director/Officer.
D&O Liability cont…
? Premiums are based on limits sought in respect of
each Director/Officer and the overall limit per year.
? Benchmark Rate is 0.35-0.5%.
Liability of Medical Establishments
? Covers all liability arising due to negligent acts in
taking due care of patients.
? Includes hospitals, nursing homes, diagnostic centers
and laboratories.
? Covers legal costs and expenses incurred by insurers in
the defense proceedings.
? Number of persons covered under policy has no
bearing on premium rating.
Medical Establishment cont…
? Extended claim reporting clause.
? Insured has to bear 0.25% of indemnity amount as
policy excess.
? Limited to 4 claims per year.
Thank You
doc_376733587.pptx
This is a PPT about general non life insurance products.
Liability Insurance
Liability insurance is a part of the general insurance system of risk financing. Any insurance against a potential loss due to the insured's liability for injury or damage to others
Salient Features
? Designed to offer specific protection against third
party claims ? Damage caused intentionally and contractual liability are not covered under liability insurance policies ? Types of Damages – ?Bodily Injury ?Personal Injury ?Property Damage
Volunteer (Agent)
? This insurance is designed to cover a volunteer's
actions that may cause physical injury to another, or damage to another's property
? Injury or damage to personal property resulted
from the negligence of the volunteer
Motor third-party insurance
? Statutory requirement under Motor Vehicles Act,
1988 ? Third party insurance does not cover injuries to the insured himself but to the ‘RoW’ who is injured by the insured ? Premiums do not vary with the value of what is being insured because what is insured is the ‘legal liability’ ? Entirely ‘fault-based’ Example – K.Gopal Krishnan vs. Sankara Narayanan
Umbrella Insurance
A catastrophic liability policy that covers liability losses in excess of those covered by any underlying homeowner’s, automobile, or professional liability.
Liability Insurance
Employer’s Liability Coverage Public Liability Coverage Product Liability Coverage Director’s & Professional Officers Liability Insurance Coverage
Employer’s Liability
? Injuries/occupational diseases sustained by
workmen ? Employee’s own negligence also covered ? Compensation as awarded by court of law ? ‘Tariff’ – Rate of premium depending on degree of hazard Example – Sexual Abuse Liability, Workmen’s Compensation
Public Liability Coverage
1. Public Industrial Liability – ? Pollution Risks ? Transportation risks
? Cover for multiple units
? Technical Collaborators liability ?Cannot be issued for unlimited liability ?Premium rates fixed for each hazard group
Public Liability coverage cont…
2. Public Non Industrial Liability
? Non-industrial activities such as hotels,
clubhouses, restaurants, cinemas etc. ? Limit of liability can be selected by insured ? Indemnity limit for any one accident – 25% of annual limit
Public Liability coverage cont…
? Environment Protection Act 1986
? Deals with handling of hazardous
substances ? Toxic substances, highly reactive substances, explosive substances and flammable substances – insurance must if over specified quantities
Product Liability Coverage
? Protect manufacturers from loss, damage to property, body
injury to third party from using the insured’s product.
? Export can be covered, provided domestic sales are also
covered.
? Also covers pollution liability on account of products
covered.
? All expenses incurred on investigation and settlement of
claim are covered by the policy.
Professional Liability Coverage
? Covers legal liabilities arising out of professional services. ? Following professions are included:
? Chartered Accountants ? Lawyers ? Engineers and Architects ? Doctors and Medical Establishments ? Financial/ Management Consultants
? Limit of liability can be selected by insured.
Professional Liability cont…
? Only 4 claims are admitted per year. ? Defense of lawsuit for damages can be taken over
by insured.
? Claim arising during policy period but reported 90
days after the expiry of policy is a claim filed in
good time.
Director’s and Officer’s Liability
? Issued to an individual/organization for benefit of
Directors/Officers to indemnify against loss on account of decisions taken by them.
? Also indemnifies Directors/ Officers against losses arising
from wrongful act done in their official capacity.
? Also provides for expenses incurred by shareholder of the
company for a claim against Director/Officer.
D&O Liability cont…
? Premiums are based on limits sought in respect of
each Director/Officer and the overall limit per year.
? Benchmark Rate is 0.35-0.5%.
Liability of Medical Establishments
? Covers all liability arising due to negligent acts in
taking due care of patients.
? Includes hospitals, nursing homes, diagnostic centers
and laboratories.
? Covers legal costs and expenses incurred by insurers in
the defense proceedings.
? Number of persons covered under policy has no
bearing on premium rating.
Medical Establishment cont…
? Extended claim reporting clause.
? Insured has to bear 0.25% of indemnity amount as
policy excess.
? Limited to 4 claims per year.
Thank You
doc_376733587.pptx