India Liability Insurance, Indian Liability Insurance, Liability Insurance India

By: EconomyWatch   Date: 26 May 2010

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India liability insurance has gained importance due to a number of factors such as globalization and increased awareness about liability claims, irrespective of industry type. The tremendous impact of liability claims can hit a company’s financial statement. This is because legal issues cost huge sums of money, even in cases where an insured is found to be ‘not guilty.’ So, companies require Indian liability insurance to tackle such unwanted circumstances.

Types of Policies under Indian Liability Insurance

Here are some policies that you can consider when researching for information on Indian liability insurance:

  • Public Liability Act Policy – Companies involved in handling hazardous substances as mentioned in Public Liability Insurance Act, 1991 can opt for this policy.
  • Public Liability Policy – This policy covers any damage to property or bodily injury against which the insured is sued by the third party. This extends to cover goods in custody, and food and beverages extension. However, professional liability, product liability, personal injuries, such as defamation and fines can be excluded.
  • Product Liability – This policy covers the legal liability to settle the liability claims. It protects against any bodily injury suffered by the third party because of the products of the insured. Vendors’ liability and technical collaborators clause can also be covered under it. General exclusions are product efficacy, product guarantee and product recall. Company’s turnover, product type, and areas of operation are taken into account to calculate the premium.
  • Commercial General Liability – This policy comprises covers that are a combination of product liability and public liability. It provides protection against the liabilities occurred due to products, operations or premises of the insured. The general inclusions comprise vendors clause, product completed operations, medical expenses and accidental pollutions. The premium is decided by considering the account insured’s turnover, product type, area of operations, and quality control measures.

  • Errors and Omission Liability – This policy provides protection against claims filed by any third party for injury or property damage that is caused due to negligence in professional services by the insured. This cover is for professionals who are engaged in the service industry.
  • Workmen’s Compensation Insurance – This offers legal liability protection to employers in case of injury or death of an employee, who is a ‘workman’ as per the Workmen Compensation Act.

    • Just as you would do with any important purchase, remember to find out every thing you can about the insurance company before purchasing a policy.


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