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PUBLIC LIABILITY POLICY (LIMIT OF LIABILITY (The amount of cover need will…
PUBLIC LIABILITY POLICY
DEFINITION
Public liability policy protects an insured in respect of his legal liability to third parties for both bodily injury (including illness), and for any loss of or damage to property which happens in connection with the business insured under the policy and occurs during the period of the policy.
ex:Legal liability refers to all forms of liability : for, negligence, nuisance , trespass, strict liability, liability under statute or contract and example vicarious liability.
How liability arise
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All business enterprises invariably come into contact with the public and negligence in the course of conducting business or defects in the premises may give rise to legal liability
No matter how complex a business, the public liability risk attaching can usually considered under the premises risk, the activities if the insured’s employees and other risk elsewhere.
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LIMIT OF LIABILITY
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There are many different types of public liability insurance policies available, with each covering different types of businesses.
Most Insurers put a financial limit on the cover provided by this form of insurance, average policies are based on Limits of Indemnity up to RM1million, RM5million and RM10million.
•The premium paid by an insured is related to the amount of indemnity selected, although premiums do not increase on a pro rata basis. For example, if the indemnity is increased from RM250,000 to RM500,000 the premium would not normally doubled.
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In a policy give the insurer the right, by giving notice to the insured, to limit its liability to the amount of the single accident indemnity limit and costs incurred by insurers up to date of the said notice.
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Major exclusion
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3)Loss or damage due to bursting of boilers, economisers, vessels, apparatus of any kind
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5)Environmental pollution, contamination, seepage
6)Loss or damage arising in the course of or as a result of remedial or other advice or treatment given
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10)Liability occasioned by war, civil commotion, martial law, any act of terrorism
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Exception
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d) Liability in respect of loss or damage to property caused by or in connection with or arising from the bursting of any part of
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e) Liability in respect of 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
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