Public Liability Insurance

General Conditions
a) This product insures the Legal Liability of the
insured to third parties in respect of:
 bodily injury to or illness as a result of accident
 loss of or damage to property as a result of
an accident & happening
b) all costs and expenses of litigation recovered by
any claimant against the insured & incurred with
the written consent of the company
 General Conditions
The starting date/commencement date of the
period of insurance is:
• for organisations which request cover by a letter,
the commencement date is the next date from
the date the request letter is received.

• for individuals, the commencement date is the

next day from the date the first down payment is
effected but not the date stated in the proposal
form.
 Insured Objects
The main type of insured object in Public
Liability Insurance is the Legal Liability of
This object type is further subdivided on
different types of objects depending on the
corresponding professional area in to 252
classes
 Sum Insured
The Sum Insured is based on the value
declared by the proposer but not
exceeding the treaty limit.
Birr (ETB) 100,000.- any one accident or
series of accidents arising out of one event
which can be increased but not exceeding
the treaty limit
 Premium Calculation
The calculation of the premium is based on
different factors specific for the corresponding
professional area such as:

• Annual wages
• Number of items of different types – number
of seats, number of employees, number of
members, number of car spaces, number of
machines etc.
• Area in acres, sq.meter, sq.foot
• Other factors.
 Exclusions
1) liability assumed by the Insured by
agreement and which would not have all
ached in the absence of such agreement
2) liability in respect of:-
(a) injury to or illness of any person under a contract
of service or apprenticeship with the Insured if
such liability is in respect of injury or illness
arising out of and in the course of the
employment of such person by the Insured:-
(b) sums payable by the Insured under legislation
relating to occupational injury any or illness.
 Exclusions
(3) liability in respect of loss of or damage to
property
(a) belonging to the Insured;
(b) in the charge or under the control of the
Insured or a member of the Insured’s
Household, or any worker or agent of the
Insured;
(c) being that part of any property on which the
Insured or any worker or agent of the Insured
is or has been working if that loss or damage
results directly from such work.
 Exclusions
(4) liability in respect of :-
(a) Loss of or damage to any property or
land or building caused by vibration or by
the removal or weakening of support;
(b) injury to or illness of any person or
loss of or damage to property occasioned
by or resulting from any such loss or
damage aforesaid,
 Exclusions
(5) liability in respect of injury illness loss or damage caused directly or
indirectly by or in connection with or arising from:-
(a) any vehicle (or trailer attached thereto) or animal or vessel or
craft not specified in the Schedule under the heading of Plant
owned or possessed or used by or on behalf of the Insured or the
loading or unloading thereof;

(b) any lift elevator escalator hoist or crane owned or used by the
Insured or for the maintenance
(c) defective drains, sewers or sanitary arrangements or air,
soil or water pollution;

(d) any ship, vessel, craft or aircraft, or thing supplied

manufactured, constructed, serviced, sold repaired altered or
treated by or to the order of the Insured;
 Exclusions
e) any product commodity article or thing supplied
manufactured, constructed, serviced, sold
repaired altered or treated by or to the order of
the Insured
f) any vessel or apparatus (other than any steam
turbine or engine or other steam driven
machinery) intended to operate under steam
pressure belonging to or under the control of the
Insured or any worker or agent of the Insured
 Exclusions
(6) Liability arising directly or indirectly or in
consequence of, occasioned by or happening
through war invasion ..etc
(7) (a) any legal liability of whatsoever nature
directly or indirectly caused by or contributed to
by or arising from ionizing radiations …etc.
(b) any accident loss destruction damage or
legal liability directly or indirectly caused by or
contributed to by or arising from nuclear
weapons material
 Policy Conditions
1)Immediate notice of any alteration, which materially
affects the risk, covered
2) The insured shall
• Take reasonable care in selection of competence
employees
• Take reasonable steps to maintain the premises, works,
ways machinery
• Maintain plant in sound condition
• Take reasonable precautions to prevent accidents
• Observe orders, rules and regulations of Public Authority
• Allow free access to the insurer or agents for inspect
purposes
 Policy Conditions
3.Claims condition
• Immediate notice of any claim
• Shall deliver detailed particulars in writing
within 7 days or any further time the
insurer may allow
• Immediately forward upon receipt of every
letter, claim, writ, summons
 Policy Conditions
4.No commitment
• No admission, offer, promise, payment
without written consent
5.The insurer may at any time pay to the
insured.
(a) Limit of indemnity for Any one Accident
per occurrence
(b) The limit of indemnity for any one
period of insurance
 Policy Conditions
6.The insured has the right of claims
investigation and assessment

7.Contribution policies to claims and

expenses

8.The insurer will not recognize any change

of interest unless prior notice and consent
 Policy Conditions
• 9.Estimates furnished to the insured
initially must have accurate figures and
shall be submitted to the insurer within one
month from expiry of each period of
insurance, and premium shall be adjusted
accordingly.
 Policy Conditions
10.Cancellation Condition
• Insurer at any time 15 days after the date
when the insured should receive such
notice: -Return of premium on pro rata
portion
 Policy Conditions
Insured: -Anytime, return of premium based
on short period rates for the time the policy
has been in force
• Adjustment shall be made based on
condition 9
• Premium charged should not be less
than minimum premium
 Policy Conditions
11.Condition Precedent:
• Due observance and fulfillment of terms,
provisions, exceptions, limitation and
conditions of the insurance policy.
 Claims
1 Notification:
 Claims
2 Claim processing
2.1Claims File.
2.2Survey investigation

2.3Admission or Repudiation of Liability

2.4Where liability is admitted prepare

payment
 Claims
3.Recovery
Excess (Deductible)Reinsurance allocation
3.1Subrogation .
Obtain subrogation rights in writing, after
settlement of claim.Out of court and court
recovery
4.After payment to the insured all salvages, where
applicable must be collected by the company
4.6.2. WORKMEN`S COMPENSATION June2011.
ppt