Public Liability


Description of Public Liability Insurance Business:

Public liability Insurance: Public liability insurance is designed to afford an indemnity to the insured in respect of his legal liability to the public for accidental bodily injury or property damage happening out of certain events. Like other classes of general insurance business, public liability policy embraces the principles of utmost good faith, insurable interest, subrogation & contribution. In order to grant public liability insurance a duly completed proposal form needs to obtain from the proposer. The following features should be considered in charging the premium :

(a) the amount of indemnity
(b) whether any extension of the usual cover is required
(c) the business
(d) the general nature of risk

The limit per incident & total number of incident in a year must be fixed. The premium is calculated on the basis of annual turn over.

Direct risk covered under public liability insurance:

a. Accidental death or bodily injury to third party (Including illness or disease) not being persons in his employment’s due to the negligent act of the insured or for which he is responsible.

b. Accidental damage caused to the property of third party due to the negligent act of the insured or for which he is responsible.


The insurers shall not be liable in respect of;

1) Any consequence of war invasion act of foreign enemy hostilities )whether war be declared or not civil war rebellion revolution insurrection or military usurped power not or civil commotion;

  1. Any liability which attaches by virtue of an agreement but which would not have attached in the absence of such agreement;

 3)Bodily injury to any person:                   

 i) Under a contract of service or apprenticeship with the insured arising out of and in the course of the employment of such person by the insured.

ii) By whom or by whose dependents a claim is brought against the insured under any workmen’s compensation legislation.

 4) Loss of or damage to:

 a)Property belonging to or in the custody or control of the insured.

 b)Property belonging to or in the custody or control or any person in the service of the Insured but the expression “Custody or Control” shall not apply to buildings not owned or tenanted by the insured but temporarily occupied by the insured for the purpose of allegation, decoration or repair

 5)Loss of or damage to that part of any property upon which the insured or any person in the service of the insured is or has been operation

 6)Loss of or damage to any property land or buildings caused by vibration or removal or weakening of support of such land property of building

 7)Loss of or damage to property caused by fire or explosion

 8)Loss of ro damage to ships craft or aircraft

 9)Injury loss or damage caused by the possession or use of

 a)Ships craft aircraft or railway stock

b)Lifts, crane, escalators or power hoisting machines unless specified in the Schedule under the heading “Plant’

c)Mechanically propelled road vehicles but provided the insured is not entitled to indemnity under any other policy this exception shall not apply to injury loss or damage as herein defined arising from

 i) The act of loading or unloading a mechanically propelled road vehicle or the bringing to or the taking away of a load from such vehicle.

ii) The defective loading; by the insured or any person in the service of the insured of any mechanically propelled road vehicle not belonging to nor hired by the insured

 10)Injury loss or damage caused by;

 a)Defective sanitary arrangements, water pollution, chemical effluent fumes or other noxious gas liquid or substance

b)Injury loss or damage caused by goods (which terms shall be deemed to include containers) sold or supplied or which have been renovated other than goods in the custody or control of the insured.

c)Sub-contractors to the inured or persons engaged in and upon the service of such sub-contractors.