PRODUCT LIABILITY INSURANCE – MEANING AND PURPOSE
Wednesday, September 2nd, 2009Insurance in general terms is a measure to indemnify against risk. Now when we talk of product liability insurance then we mean an insurance policy to indemnify the insured against legal liability to third parties, which may be caused by anything harmful or defective in the products supplied or sold by the insured with regard to the business specified. Therefore it aims to provide an indemnity to the insured (up to the limit of liability) in the event of any claim being brought against him. It indemnifies insured against:
INJURY- which includes illness or disease, bodily injury or death to any person.
Damage – which means real and / or physical damage to the atmosphere , water, land or other tangible property
Pollution- that is contamination or pollution of the atmosphere or of any water, land or other tangible property.
Compensation- including claimants costs, fees and expenses
Accident- means an event or circumstance which is sudden, unintentional and unexpected including resultant intermittent or repeated exposures due to the same event or circumstances But there are certain perils for which insurance claim cannot be asked for-
War
Loss due to wear and tear or depreciation or any consequential loss.
Perils belonging to nuclear group
Negligence of the insured
liability where Insured himself or person related to him ( family member or employee)is involved as principal or accessory
liability due to Intentional act or acts of self injury or performed under the influence of drug/intoxicant