Liability Insurance In India

Liability insurance in India

In broad terms, liability insurance policy protects an individual or business from the risk that they may be sued and held legally responsible for something such as malpractice, injury or negligence. They cover legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are generally not covered in these types of policies.

Liability insurance is critical for those who may be held legally liable for the injuries of others, especially medical practitioners and business owners. A product manufacturer may purchase product liability insurance to cover them if a product is faulty and causes damage to the purchasers or any other third party. Business owners may purchase liability insurance that covers them if a staff is injured during business operations.

The following come under Liability Insurance in India:

• Worker’s Compensation
• Public
• Professional Indemnity
• Product Liability
• Commercial General
• Director’s & Officers (D&O)
• Employment Practices (EPLI)
• Clinical Trials
• Crime Insurance

It is a legal requirement for all businesses in India that employ staff to take Workmen’s Compensation insurance policy. It ensures that all employees are protected if they are injured, killed or contract a disease during the course of their work.

Workers compensation insurance pays benefits to a worker who incurs a job-related injury or illness. For purposes of workers’ compensation, an injury is deemed to be job-related when it arises out of employment activities and when it occurs in the course of employment.

Liability to employees under the Workmen’s Compensation Act 1923, Fatal Accidents Act 1855 and at Common Law is covered under this policy. Workers compensation insurance assures that injured workers get medical care and compensation for a portion of the income they lose while they are unable to return to work.

Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or ‘pure economic’ loss resulting from your negligence. 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. This type of insurance will only cover third party claims.

This Policy does not cover liability arising out of willful or intentional non compliance of any statutory provisions and in respect of fines, penalties, punitive and/or exemplary damages. This Policy also does not cover liability arising out of or in connection with pollution any product personal injuries such as, libel, slander, fines, penalties, punitive or exemplary damages.

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