Public Liability (Non-Industrial) Insurance (PLI)

PLI (Non-Industrial) Insurance covers third-party liabilities (bodily injury/property damage) at the insured's premises. This type of insurance is typically required for businesses that operate in the public sphere, such as schools, colleges, restaurants, shops, and entertainment venues. The policy can be extended to cover legal expenses arising from pollution, transportation of hazardous substances, carriage of treated effluents, etc.

Coverage

  • Damages to the third party in respect of accidental death, bodily injury, or loss of or damage to property
  • Legal costs and expenses incurred by the Insured with prior consent of insurer.
  • Liability costs for pollution or contamination of the atmosphere, water, land, or damage to other tangible property.

Features

  • Pollution cover requires a certificate from the Pollution Control Board
  • The policy operates on a claims-made basis
  • Continuous coverage is required for claim settlement
  • Period of insurance from retroactive to expiry date
  • Retroactive date is the inception of risk on a claims-made basis
  • A 90-day notification period is required for claims after non-renewal/cancellation/li>
  • Indemnity extends to officials in business or private capacity

Exclusions

The Policy does not cover liability arising out of


  • Natural disasters such as earthquakes, floods, storms, etc.
  • Willful non-compliance with statutory provisions or negligence in the management
  • Purely financial losses like goodwill or market loss
  • Personal injuries like libel, defamation, mental anguish, etc.
  • Infringement of copyrights, trademarks, patents, etc.
  • Fines, penalties, punitive or exemplary damages, and related costs
  • Excluded perils: war, nuclear incidents, and acts of God
  • Claims involving compulsory motor vehicle insurance, except in certain situations
  • Transportation of materials and dangerous substances unless specifically covered
  • Coverage is not extended to aircraft, watercraft, or hovercraft used by the insured
  • Injuries to employees arising from their employment contract
  • Incidents occurring before the Retroactive Date in the Schedule

Costing

  • Policy cost varies according to business size, type, coverage, and risk exposures
  • However, this type of policy is generally affordable and protects businesses of all sizes

Indemnity limits

  • Any One Accident (AOA): This is the maximum amount payable under the Policy for each accident
  • Any One Year (AOY): This is the maximum amount payable under the Policy for any one year and is expressed in ratios in relation to AOA mentioned above as 1:1 or 1:2 or 1:3 or 1:4

Points to consider

  • Engage an experienced broker when purchasing PLI insurance to ensure expertise in the subject
  • Understand the terms and conditions of your policy to be aware of the coverage and exclusions

Claim Process

1

Incident notification

2

Assignment of claim handler

3

Documentation and information gathering

4

Investigation

5

Coverage determination

6

Claim settlement/negotiation

7

Claim resolution

8

Thank You

Note: The claims process can vary depending on the specific circumstances and the policies.

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