PRODUCT LIABILITY INSURANCE FAQs

What does the policy cover?

  • Policies issued shall cover all sums which the Insured shall become legally liable to pay as damages in consequence of accidental death/bodily injury or disease to Third Parties and/or loss of or damage to Third Party property arising out of any defect in the products manufactured and covered under the Policy.
  • No admission of liability to be given without our written consent.
  • We may take over defense of any claim at our discretion this would in no manner make us liable.
  • In case of a claim or series we may pay up to indemnity limit and be free from any further liability.
  • We can include technical collaborators liability, which will be covered at nominal extra charge.
  • Notified vendors can be included at extra charge.
  • Jurisdiction applicable is of India but as an extension we can include exports.
  • Loan and lease manufacturers can also be covered.

What are some of the major exclusions?

  • To pay for product recall. (unless offered as extension)
  • To pay for repair of product allegedly defective.
  • For products used in structure and controls of aircraft.
  • Deliberate willful non-compliance.
  • Pure financial loss such as loss of goodwill.
  • Arising out of fines, penalties other punitive damages.
  • War and nuclear group of perils.
  • Damage to property belonging to you or held in trust by you.
  • Losses arising prior to retroactive date.
  • Arising out of deliberate disregard of insured's guidelines regarding use of product.
  • Injury to any person in contract or connected in employment with insured.
  • Contractual liability unless such would have existed without the specific contract.
  • Product guarantee.
  • Claims for failure of product fulfilling use intended (Product Efficacy).
  • Products having left insured's premises prior to retroactive date.
  • Policies covering Exports to US/Canada only with LOI of more than INR 25 Crores.

What are some of the excluded business categories?

  • Any liability of railways & Aircrafts, watercraft or any product with intended use in security systems.
  • Asbestos.
  • Tobacco & EMF liabilities.
  • Food Products. (meat, processed food etc.)
  • Manufacturing/formulation facilities in US/Canada.

How much is the maximum cover size?

It shall not be permissible to issue any Product Liability Insurance Policy with unlimited liability. The ratio of limit of indemnity any one accident to any one year shall not exceed 1:4. The maximum LOI we can offer is INR 35 Crores.