Know More On Public Liability insurance
During the morning times of 3rd December 1984, people observed a black cloud all over the sky, in Bhopal. The black gas started to choke the lungs of people. Their brain, immune system, hearing and seeing abilities got affected and more than 5,200 people didn’t see the next day. Some 500,000 got badly poisoned but survived. Yes, it was the Bhopal Gas Tragedy. And the funniest and sabotaging point is that it was just because of leakage of water. These accidents are rare but very impact full.
A manufacturing company goes through many phases and often require using and holding the harmful chemicals or needs to build heavy bridges. Companies processing edibles, automobiles or even paints too face the time when these things possess the capacity to take away the life of the user. Such losses are considered as Public Liability. If you are trying to save yourself from any misfortunes that can even ruin your entire fortune, take Public liability insurance.
Type of covers
- Public liability Non industrial risk: Any loss to the third party by any action of non- industrial premise up to the extent of sum assured is payable under this cover. Such premises can be Hotels, club houses, restaurant, theatre, schools, public library, amusement park, shops, etc. These covers have exclusions, some of which are related to contractual liability, motor third party liabilities, pollution cover etc.
- Public liability industrial risk: these are for warehouses, factories and manufacturing units. Public Liability Insurance Act 1991 makes it mandatory for all the companies dealing with hazardous material to get a public liability cover.
Add on covers:
On payment of extra premiums, public liability insurance covers additional losses.
- Natural calamities such as earthquake, flood, landslide etc.
- If pollution control authority issues NOC (No Objection Certificate) then this insurance covers the pollution risk. These risks include any third party liability associated with the pollution created by the company.
- Transportation risks are also subjected to be covered by additional [premium.
Exclusions:
The cover under public liability insurance is subjected to various permanent exclusion.
- Any damage occurred to the property of insured is not cover under this policy. Policy strictly indemnifies only third party liability.
- Deliberate acts or contractual liability are legally daunting and thus are out of the scope of this policy.
- Over-the-counter settlement of claims by insured to third party are also excluded.
- Any loss arising out of any defective design of the product which is used as auxiliary in another product is not covered under this policy, like tyres in aeroplane.
Thus understanding of the covers and exclusions is very essential for a business before taking public liability insurance. If chosen wisely, this cover not only shields against any financial turmoil but also increases the goodwill of the company.
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Public liability insurance is somewhat a civic responsibility of the company as well as an individual in position. The various types of covers insures the safety and security of not the individual but the users or the person dealing with it. The add on covers are intresting as it covers natural calamities like earthquake, floods and even the pollution and transportation risks are covered.