9. third party liability insurance - 2012

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  • Im not afraid to die. I just

    dont want to be there when it


    (Woody Allen)

    The Faculty of International Business and


    Third party liability


    Cosmin Jolde, Associate Professor

  • Content:

    1. Concept of liability

    2. Third party liability - type of coverage

    2.1. General third party liability

    2.2. Product liability

    2.3. Employers liability

    2.4. Tenants liability

    2.5. Other liabilities

    3. Time coverage (occurrence , claims made)

    4. Territory

    5. Underwriting information

  • 1. Concept of liability

    Liability = responsibility to cover damages caused to third

    parties, by own fault.

    In order to obtain indemnities under the liability policy, it is

    necessary that:

    a) a prejudice to a third party is caused, by act of an

    insured person or of a property of such person

    a) a cause effect relationship exists between the

    act/event and the injured person

  • 2. Third party liability insurance

    2.1 General third party liability - coverage

    Third party liability insurance covers :

    damages for which the insured (legal person) is legally liable,

    towards third parties :

    material damage

    bodily injury

    Coverage is granted for damages caused by the Insured or its

    representatives (employees, delegates etc) by own fault.

  • 2. Third party liability insurance

    General exclusions:

    Major exclusions:

    contractual liability


    radioactive contamination

    damages caused to third parties

    moral prejudice

    consequential loss (loss of profit etc)

    malicious damage

    motor third party liability

  • 2. Third party liability insurance

    2.2. Product liability (I):

    Coverage :

    material damages and bodily injury caused by the products

    manufactured / imported / distributed by the Insured, due to

    the defects of the said product

    material damage and bodily injury suffered by the product


  • 2. Third party liability insurance

    2.2. Product liability (II):

    Definition of product :

    any goods manufactured, produced, built, repaired, installed,

    processed, modified, maintained, tested, sold, supplied or

    distributed by the Insured ( including the packaging and

    labelling) and which is not in the possession of the Insured at

    the time of the occurrence/ accident.

  • 2. Third party liability insurance

    2.2. Product liability (III):

    The following can be considered Insured under this policy :

    manufacturer of the product

    any person / entity which is presented as producer /

    manufacturer, by labeling the product with its name, brand or

    other distinctive mark

    any importer of a good with destination of selling, rental,

    leasing or any other form of distribution.

  • 2. Third party liability insurance

    2.3. Employers liability:Coverage :

    indemnity for the amounts which the Insured is liable to cover

    following prejudice caused by its own fault to the employees.

    Bodily injury suffered by the employees and / or material

    damage to their property

    The event should be related to the working process and should

    take place during working hours.

  • 2. Third party liability insurance

    2.4. Tenants liability: Insured = any private or legal person who has a rental contract

    concluded with a third party.

    Coverage provided for damages caused to the rented property,

    for which the Insured (Tenant) is liable.

  • 2. Third party liability insurance

    2.5. Other liabilities: Directors and Officers liability

    Motor third party liability

    Professional liability

  • 3. Time coverage

    a) claims made

    coverage for damages which are reported during the validity

    period of the policy, even if they are a consequence of events

    produced before the inception date. A retroactive date should

    be agreed by the Insurer.

    b) occurrence

    Coverage for damages occurred within the period of validity as

    well as their consequences, if it can be proved without doubt

    that the causes of such consequences can be placed within

    the period of validity of the policy.

  • 4. Territory

    a)Insureds premises

    b) Romania

    c) Romania and other countries, where the Insured operates

    d) USA & Canada, as well as countries / territories with similar

    legislation are usually excluded

  • 5. Underwriting information:

    Specific questionnaire for each type of liability

    Annual reports and other financial documents may also be


  • Thank you for your time &



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