Liability - Casualty Lines Insurance

Liability - Casualty Lines Insurance

The underlying idea of Liability insurance is the concept of Social Duty of care. Since negligence in this duty of care may cause bodily harm to another person/property, the person who was negligent ought to compensate the effected person. The compensation may be decided in a Court of law/a system specifically set up for it (Employees' Compensation Commissioner) or by compromise outside Court.

Some liabilities are mandatorily to be insured against & may have defined limits of liability (a factory owner’s liability for safety of his employees, Third party liability of vehicles on public road). Other liabilities like a Doctor’s/a product manufacturer are optional & compensation may be decided by courts.

Risks Covered

A person/institution that has been negligent is also expected to be responsible for the financial compensation to the victim of the negligence. This compensation amount - as fixed by law or as decided by a Court - is covered in a liability policy.

The policy also provides for legal expenses incurred in defending the case.

Who can purchase this Insurance?

Every individual/professional/organisation whose negligence can result in bodily injury/death/property damage should have a liability cover. So an individual householder, a professional/consultant or manufacturer can opt for a liability policy suitable for their needs.


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