|
PL policy insures the legal liability for claims
against you raised by third parties during the
period of insurance due to injury or damage caused
by a product made by or sold by you.
What is
Product Liability Insurance Cover?
A Product
Liability policy indemnifies the insured against
legal liability to pay compensation arising out of
any defect in the products manufactured by the
policy holder and covered under the policy.
Essentially,
product means any tangible goods or property after
it has left the custody and control of manufacturer
- which has been designed, specified, formulated,
manufactured, constructed, installed, sold,
supplied, distributed, treated, serviced, altered or
repaired by/ or on behalf of the insured.
The indemnity
under the policy will only apply to claims arising
out of accidents during the policy period and as a
result of which there is a bodily injury and/or any
property damage for which the insured is held
legally liable. Legal expenses incurred by insured
would also be reimbursable subject, of course, to
the indemnity limit specified in the policy, as
selected by the insured.
How is
Product Liability Insurance specially relevant to
exports?
When an Insured
sends his product into international markets he is
putting his reputation at stake and if any injury or
damage is caused by the use of the product, not only
he, but the nation also loses reputation.
It should be
remembered that liberal product liability awards are
common abroad. What is more, is that, a product
liability cover is a statuary obligation in several
advanced countries.
For these and
several other reasons product liability insurance is
important not only for products being sold in the
domestic market but also for exporters.
Who is the
Insured?
Any firm involved
in manufacture of goods as explained above can be
covered under the policy.
What is
the Sum Insured?
The policy
provides for Any One Accident (AOA) limit as well as
Aggregate For Any One Year limit which is to be
selected by the insured. The indemnity limits
provided would take care of :
- Compensation
awarded to claimants
- Legal Expenses
The policy does
not cover any punitive/ exemplary damages and fines
awarded.
|
