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Corporate Insurance » Liability
Liability can arise from any of the following: by tort/ common law/ Sharia law; arising out of negligence; by statute; arising out of a provision in a law and by Contract – arising out of failure or inadequate performance.
Liability may be for Property damage – i.e. damage to Third Party Property; or from death/bodily injury caused to other person. A legal liability can drastically alter a person’s/company’s financial situation and legal formalities can become a burden.
At AL AHLIA, we offer a wide range of solutions for you. We provide cover for:
- Compensation in respect of legal liability towards accidental Third Party Property Damage and/or
- Third Party Death/Bodily Injury
- Legal Defence costs and expenses
 Professional Indemnity Policy
Public Liability Insurance
Product Liability Policy
Director's & Officers Liability
Employer's Liability or Workman's Compensation Insurance
Professional Indemnity (PI) Policy
PI policies are designed to provide insurance protection to professionals like architects, engineers, lawyers, doctors, consultants, chartered accountants etc. against their legal liability to pay damages arising out of negligence in the performance of their professional duties.
What is covered
- All sums which the Insured is legally liable to pay as damages to third parties + legal costs + expenses incurred
- Qualified assistants or employees named in the proposal
What is not covered
- Criminal acts or acts committed in violation of law
- Services rendered under the influence of intoxication or drugs
- Third party Liability
- Claims arising from or associated with HTLV-III or LAV or related to AIDS
- Loss of pure financial nature
Basis of Sum Insured
An amount towards maximum liability during a policy year with identical limit of indemnity for Any One Accident or Any One Year
Public Liability Insurance
This insurance provides cover to the Insured in the event of death or injury to any person or damage to property of any person, arising out of an accident while handling hazardous substance. This policy can be taken by both industrial as well as non-industrial risks like hotels, restaurants, cinema houses, theatres, malls etc.
What is covered
The policy indemnifies the Insured in the event of a legal liability due to injury or damage arising out of accidents due to business specified in the policy. It also reimburses all costs and expenses incurred for defending the claim
What is not covered
- Pollution Risks unless specifically Insured
- Contractual Liability
- Act of God Perils
- Deliberate non-compliance of statutory provisions
- Speculative risks
- Criminal liability such as fines and penalties
- War perils
- Radiation
Basis of Sum Insured
Sum Insured is based on the nature of business and the limit of indemnity chosen for any one year, any one accident.
Product Liability Policy
This policy insures the legal liability for claims against a manufacturing company raised by third parties during the period of insurance, due to injury or damage caused by a product made or sold by that company.
What is covered
- Indemnity to the Insured in the event of a legal liability
- Reimbursement of all costs and expenses incurred for defending the claim
What is not covered
- Liability for cost of repair, reconditioning or replacement of defective products
- Cost of recall of product
- Cost arising out of deliberate, willful or intentional non- compliance of any statutory provision
- Liabilities like fines, penalties etc
- Injuries to employees
- Contractual liabilities
Basis of Sum Insured
Policy is issued on the basis of ratio of limit of indemnity chosen for Any One Accident to Any One Year.
Directors’ & Officers (D & O) Liability
This policy is designed to provide protection to Director’s and Officers of a company against their personal civil liability for wrongful acts committed by them in the supervision and management of the affairs of the company. The term ‘wrongful acts’ means – breach of duty, breach of trust, neglect, error, misleading statements, omission and other similar acts.
What is not covered
- Dishonesty, fraud, criminal or malicious acts
- Personal guarantees or warranties
- Libel, slander and damage to property
- Seepage and contamination
Employer’s Liability or Workman’s Compensation Insurance
This is a mandatory cover to be taken by all employers as required under Royal Decree 40/ 1977. This policy insures the legal liability of the employer towards employees for personal injury by accident or disease that may occur during and in the course of employment with the Insured.
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