Liability insurance offers protection against risk of getting sued for negligence, malpractice, injuries and damage to people and/or property. Liability insurance covers legal costs and payouts for which the insured party would be found liable.
As a follow up of Environment Protection Act of 1986, Public liability Insurance is mandatory in respect of those who handle hazardous substances by virtue of Public Liability Insurance Act of 1991. The names of hazardous substances and the quantity of each, is listed in the 'Act' and the quantity of the substance can be as low as one kilogram for Act purposes.
The Policy can be taken by anyone having a physical property such as House, Commercial Property, Machines, any other assets for which they are liable for any third party bodily injury and property damage
A heavy tank full of water fell on the person passing on the road.
The tank was not mounted and fixed properly due to which it fell on the head which caused severe injury on the head. Since it was the responsibility of the owner hence the entire liability fell on the owner.
Third party death, disability, injury and even third party property damage is covered in a motor policy. For third party risk caused by any other reason a Public Liability policy is must.
Liability policy should always be a part of corporates Insurance portfolio.
A Customer who goes to a restaurant with his family for a dinner slips on the wet floor of the restaurant and fractured his leg . There was no signage of " WET FLOOR BE CAUTION".
Customer claimed compensation form the restaurant on the ground that the duty of care was missing from the restaurant.
It was a chain of restaurant, a liability policy was taken by the corporate office. The claim made by the customer was paid from the liability policy.
All sign of CAUTION must be mentioned in the premises so that such claim can be avoided.