Product Liability Insurance

Policy covers liability arising out of accidental death/bodily injury or disease to Third Party and/or loss of or damage to Third Party property due to any defect in the products manufactured and covered under the policy after such products have left the insured’s premises. The insurance normally does not cover the cost of product recall, removing, replacing or repairing defective products or loss of use thereof. However, the same may be covered at extra premium. The policy is subject to Claims Series Clause which provides that all claims/series of claims arising out of the same fault will be bunched together and considered under the policy wherein the first claim of the series applies. The series will incorporate all claims reported within a period of three years from the date of the first claim reported under the policy. The policy provisions which are common to Liability Insurance like Retroactive period, Notification Extension etc will continue to apply.

The other important benefits are-


Revision in limits of indemnity:

  • Midterm increase/decrease in the limits of indemnity can be considered. Whenever, changes in indemnity limits are agreed to, the revised retroactive date showing indemnity limit available at various dates will be incorporated in the Policy Schedule.

Vendor’s Liability Extension:

  • Policy may be extended to cover “Limited Vendors Liability at additional premium.

Subcontractor’s Liability Extension:

  • Policy may be extended on payment of additional premium to cover Sub-contractor’s liability in respect of products not manufactured by the insured but manufactured by the Sub-Contractors and/or Loan and Licence Manufacturers on their own brand name.