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PUBLIC LIABILITY INSURANCE (NON – INDUSTRIAL RISK) POLICY

this class of business is governed by a market agreement which applies to non industrial risks such as:-
1) hotels , motels, club houses, restaurants , boarding and lodging houses, flight kitchens
2) residential premises
3) exhibitions, fairs and fetes, stadia
4) permanent amusement parks
5) deposits, warehouses, god owns, shops, tank farms and similar other non-industrial risk.
the agreement applies to policies which aggregate limits of indemnity any one proposals a)exceeding these limits and b) in respect of risk outside India are to be referref to the market agreement committee.

POLICY COVERAGE
the policy consists of 9 clauses which are now considered. the student should refer to the annexure and study the following notes.

OPERATIVE CLAUSE:
Whereas the Insured named in the schedule hereto and carrying on the business described in the said schedule has applied to the Liberty Videocon 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.

INDEMNITY:
The Indemnity only applies to claims arising out of Accidents occurring in the Insured Premises during the Period of Insurance first made in writing against the Insured during the Policy Period and the Insured is indemnified in accordance with the Operative Clause for and/or arising out of Injury and/or Damage but only against claims arising out of or in connection with the business specified in the Schedule and not against claims arising out of or in connection with:-
(a) Pollution howsoever caused unless specifically covered
(b) Any Product.

For the purpose of determining the indemnity granted
(a) ‘Injury’ means death, bodily injury, illness or disease of or to any person,
(b) ‘Damage’ means actual and/or physical damage to tangible property;
(c) ‘Pollution’ means pollution or contamination of the atmosphere or of any water
land or other tangible property;
Policy Period’ means the period commencing from effective date and hour as shown in the policy schedule and terminating at midnight on the expiry date as shown in the policy schedule.
(d) ‘Period of Insurance’ means the period commencing from the retroactive date and terminating on the expiry date as shown in the Policy Schedule.

NOTIFICATION EXTENSION CLAUSE:
Should the Insured notify the company during the Policy Period in accordance with General Condition 9.1 of any specific event or circumstance which the company accepts may give rise to a claim or claims which form the subject of indemnity by this policy, then the acceptance of such notification means that the company will deal with such claim or claims as if they had first been made against the Insured during the policy period. The extension under this clause will be subject to the maximum time limit laid down under the Indian Limitation Act in force from time to time.

EXTENDED CLAIM REPORTING CLAUSE:
In the event of non-renewal or cancellation of this policy, either by the company or by the Insured, the company will allow a time limit not exceeding 90 days from the date of expiry or cancellation of the policy provided no insurance is in force during this extended reporting period for the same interest, for notification of claims for accidents which had taken place during the Period of Insurance but could not be made during the Policy Period, provided, however, all claims made during the extended reporting period shall be handled as if they were made on the last day of
the expiring policy period and are subject to the limits of indemnity and the terms, conditions and exceptions of the policy

INDEMNITY TO OTHERS:
The indemnity granted extends to:
4.1 Officials of the Insured in their business capacity arising out of the performance of their business or in their private capacity arising out of their temporary engagement of the Insured’s employees;
4.2 The officers, committees and members of the Insured’s canteen, social, sports, medical, fire fighting and welfare organizations in their respective capacities as such;
4.3 The persona representatives of the estate of any person who would otherwise be indemnified by this Policy but only in respect of liability incurred by such person.

CROSS LIABILITIES:
Each person or party indemnified is separately indemnified in respect of claims made against any of them by any other person or party (other than the named Insured) subject to company’s total liability not exceeding the limits of indemnity stated in the Schedule of the Policy.

DEFENCE COSTS:
The company will pay all costs, fees and expenses incurred with their prior consent in the investigation, defence or settlement of any claim made against the Insured and the costs of representation at any inquest, inquiry or other proceedings in respect of matters which have a direct relevance to any claim made or which might be made against the Insured, provided such claim or claims are the subject of indemnity by the policy. Such costs, fees and expenses are called ‘Defence Costs’.

INDEMNITY LIMITS:
Company’s total liability to pay compensation, Claimant’s costs, fees and expenses and defence costs shall not exceed the Indemnity limit stated in the schedule. Indemnity limit applies to any one claim or series of claims arising from one originating cause. Indemnity limit shall represent the total amount of company’s liability during the Policy Period. The Insured shall bear as excess the amount or percentage of the Limit of Indemnity per any one accident so stipulated in the Schedule attached to the policy.

EXCLUSIONS
• 8.1 assumed by the Insured by agreement and which would not have attached in the absence
of such agreement.
• 8.2 arising out of earthquake, earth-tremor, volcanic eruption, flood, storm, tempest,
typhoon, hurricane, tornado, cyclone or other similar convulsions of nature and
atmospheric disturbance.
• 8.3 arising out of deliberate, willful or intentional non-compliance of any statutory provision.
• 8.4 arising out of loss of pure financial nature such as loss of goodwill, loss of market, etc.
• 8.10 transportation of materials and / or hazardous / dangerous substances outside Insured’s premises unless specifically covered.
• 8.11 the ownership possession or use by or on behalf of the Insured of any aircraft,
watercraft or hovercraft.
• directly or indirectly caused by or arising from or in consequence of or attributable toany act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

GENERAL CONDITIONS
The Insured shall give written notice to the company as soon as reasonably practicable of any claim made against the Insured (or any specific event or circumstance that may give rise to a claim being made against the Insured) and which forms the subject of indemnity under this policy and shall give all such additional information as the company may require. Every claim, writ, summons or process and all documents relating to such event shall be forwarded to the Company immediately when they are received by the Insured. The Insured shall give all such information and assistance as the company may reasonably require. The Policy and the Schedule shall be read together as one contract and any word or expression to which a specific meaning has been attached in any part of this Policy or the Schedule shall bear such specific meaning wherever it may appear.

IMPORTANT FEATURES OF THE MARKET AGREEMENT
• the agreement which came into force December 1,1991 provides for standard proposal and policy forms, rate of premium and rules and regulations.
• the ratio of indemnity limits of any one accident to any one year selected by the insured can be 1:1 1:2 1:3 or 1:4 policies cannot be issued for unlimited liability.
• no revisions in the limits of indemnity are allowed during the currency of the policy.
• the rates of premium prescribed are annual rates and full premium is payable at the inception of the policy.
• all policies issued under this agreement are subject to compulsory excess subject to a applicable to both property damage claim and bodily injury claim inclusive of defense costs arising out of one accident.

SPORT FACILITIES
this extension includes legal liability of the insured for death, bodily or loss or damage to or loss or loss of use of property death, boldly injury or loss or damage to or loss of use of property arising out of use of sports facilities.
the extension is subject to condition that:
1) the equipments and the premises used for sports are kept in a state of good and proper maintenance and
2) adequate guards and experienced trainers are on duty where necessary
this extension is available to hotels club houses, restaurants, boarding and lodging houses, school and educational institutions.

FOOD AND BEVERAGES
legal liability for death and bodily injury and loss or damage to or loss of use of property arising out of poisoning by foreign or deleterious matter in food, beverages any other edible items supplied by the insured. the extension is subject to the provision that the insured shall take every possible precaution that the food etc. supplied is free from contamination and fit for human consumption and that b) limits a.o.a and selected form part of the overall limits of indemnity.

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