product liabilty

8/10/2019 Product Liabilty

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MARKET AGREEMENT ON

RATING OF

PRODUCT LIABILITY RISKS

THE ORIENTAL INSURANCE COMPANY LTD.

Private And Conidentia! " I##$ed For

T%e U#e O In#$rer# Carr&in' On Genera! In#$ran(e

B$#ine## in India

1


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MARKET AGREEMENT ON PRODUCT LIABILTY

The Market Agreement (hereinafter called the Agreement) lays down rules,

regulations, rates , advantages, terms and conditions, as contained herein, for

transaction of Product ia!ility "nsurance !usiness in "ndia#

The Agreement e$tends to the whole of "ndia#

I N D E )

S!.No. Content# Pa'e No.

"# %eneral &ules ' &egulations *

""# &ating + 11

"""# $-orts 1. 1/

"0# lassification of &isks 12 13

0# 4tandard Policy 5orm .6 .+

0"# ndorsements .3 .

0""# 4tandard Pro-osal 5orm *

0"""# &isk Assessment + 7/

.
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PRODUCT LIABILTY AGREEMENT

Se(tion I

GENERAL RULES AND REGULATIONS

1 A--lica!ility

This Agreement a--lies to all Products ia!ility -olicies issued !y "nsures in "ndia

with a ma$imum limit of indemnity of &s 16*#/ crores any one year 8during the

-olicy -eriod#

$-orts to 9#4#A8 anada and other countries as -rovided in 4ection : """

($-orts) may also !e covered under Products ia!ility Policy -rovided (a)

domestic turnover of the "nsured is covered and (!) rates, terms, conditionse$cess etc#, -rescri!ed in 4ection : """ are com-iled with#

Products ia!ility -ro-osals with limits of indemnity in e$cess of &s 16*#/ crores

any one year8-olicy -eriod shall !e referred to the Market Agreement ommittee

!efore acce-tance to fi$ rates, terms and conditions#

.# ffective date; This Agreement will come into force from 1#1#13++#

# 4tandard Pro-osals 5orm

"nsurers shall o!tain Pro-osal for Products ia!ility "nsurance in the 4tandard

Pro-osal 5orm -rescri!ed under this Agreement#

ury or disease to Third Parties and8or loss of or damage to Third

Party -ro-erty arising out of any defect in the -roducts manufactured and covered

under the Policy after such -roducts have left the "nsured?s -remises#

"t shall not !e -ermissi!le to issue Product ia!ility Policies with unlimited

lia!ility#


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may consider granting of run off covers !ased on merits of each case# &aters,

terms and conditions for such run off covers may !e finalised !y the om-anies

and if necessary they may consult their reinsurers#

3# om-ulsory $cess

All Policies issued under this Agreement shall !e su!>ect to a om-ulsory $cess

of 6#/ -er cent of the limit of indemnity -er any one accident su!>ect to a

minimum of &s .6668 and ma$imum of &s #6 lakhs# The "nsured shall !ear this

com-ulsory e$cess, which is a--lica!le to !oth -ro-erty damage claims, and

death8!odily in>ury claims inclusive of defence #-a

costs arising out of any one accident# 5or e$-orts to 9#4#A 8 anada, the

om-ulsory $cess shall !e as s-ecified in 4ection """#

16# 0oluntary $cess (educti!les)

The following discounts on the -remium may !e allowed for 0oluntary $cess

o-ted !y the "nsured#

The 0oluntary $cess shall !e in addition to the com-ulsory e$cess and shall !e

a--lica!le to !oth -ro-erty damage claims and 8 or death 8 !odily in>ury claims

inclusive of defence costs arising out of any one accident#

0oluntary e$cess : -ercentage of

imit of indemnity -er any one accident iscount

1C .#/C

.C /#6C

7C *#/C

2 C 16#6C

+C 1.#/C

16C 1/#6C

11# 4horts Period Premium

"t shall not !e -ermissi!le to issue -olicies for -eriods more than 1. months#

The following short -eriod scale of -remium shall a--ly to

i) -olicies issued for -eriods less than 1. months and

ii) -olicies cancelled during the currency at the re=uest of the "nsured

su!>ect to no claim#

/


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Period &ate

(


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on -roducts manufactured !y third -arties#

1# The limits of "ndemnity under the -olicies issued under this Agreement

shall !e e$-ressed in "ndian urrency only# 4ettlement of claims also shall !e

"ndian currency#

Pro-osals for issuance of -olicies with limits of indemnities e$-ressed in

foreign currency as well as for settlement of claims in foreign currency have a

!lanket a--roval of the &eserve Eank of "ndia, Eom!ay vide their letter &ef#


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P&F9T "AE""TG A%&M


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e$ceeding &s# 266 lakhs on the e$cess of &s# /66 lakhs

$ceeding &s 266 lakhs !ut not &s# *,**/ J 6#*6 -er mille

e$ceeding &s# *66 lakhs on the e$cess of &s# 266 lakhs

$ceeding &s# *66 lakhs !ut not &s# +6,**/ J 6#26 -er millee$ceeding &s# +66 lakhs on the e$cess of &s# *66 lakhs

$ceeding &s# +66 lakhs !ut not &s# +2,**/ J 6#/6 -er mille

e$ceeding &s# 366 lakhs on the e$cess of &s# +66 lakhs

$ceeding &s# 366 lakhs !ut not &s# 31,**/ J 6#76 -er mille

e$ceeding &s# 16**/ lakhs on the e$cess of &s# 366 lakhs

The following -remium on imit on "ndemnity any one year shall !e charged where the ratio of imit of"ndemnity -er any one accident to any one year are as s-ecified !elow;

&atio AFA; AFG Premium

1 ; 1 166C of the a!ove Ta!le .

1 ; . +6C of the a!ove Ta!le .

1 ; *6C of the a!ove Ta!le .

1 ; 7 26C of the a!ove Ta!le .

# 4te-s for com-uting Premium

5or domestic cover only

(i) Premium on Turnover

Premium rate de-ending u-on the category of risk grou- to !e charged on the total turnover as -er

Ta!le :1

(ii) Premium on "ndemnity

Premium on limit of indemnity -er any one year is to !e charged as -rovided for in Ta!le :. !y

suita!ly ad>usting for ratio of AFA; AFG selected

iii) Total %ross Premium

Total gross Premium chargea!le will !e (i) J (ii) a!ove

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"94T&AT"F< 1

Product ia!ility "nsurance omestic over

&isks %rou- 7

imit of "ndemnity &s */,66,666 AFA&s 66,66,666 AFA

Therefore ratio of AFA to AFG 1 ; 7

Turnover &s# +6 rores

Premium on Turnover

(&s# +6 crores K 6#63 -#m#) &s# *.,666

Premium on "ndemnity imit

of &s# crores

(&s# 72**/ K 26C) &s# .+,62/

Total Premium &s# 166,62/

11


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PRODUCT LIABILITY

Se(tion*III

E ) P O R T S

1#


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ategory of country Multi-lier

" 1/

"" /

""" .

(/) The Premium calculated as -er 4ection "" : E and multi-lied !y the highest

multi-lier (a--lica!le on the !asis of the categories of countries of e$-orts

attracting highest multi-lier) will !e the Premium on "ndemnity # @hen e$-ort s

are involved -remium on indemnity shall not !e charged again for domestic

sales#

(2) Total of 7 and / will !e the total additional -remium for e$-orts#

(*) The additional -remium for e$-orts so arrived at shall !e added to the domestic

sales -remium on Turnover only ( as -er 4ection "" A ) to arrive at the totalgross -remium under the Policy#

# 5or covering e$-orts to 9#4#A and anada ,the ect to om-ulsory $cess

of 1#6C ( instead of 6#/6 C as -er 4ection :" , &eg # 3 ) of the limit of "ndemnity -er

any one accident su!>ect to a minimum of &s# 76668 and a ma$imum of &s# 2 lakhs #

# This om-ulsory $cess shall a--ly to !oth -ro-erty damage claims and

death 8 !odily in>ury claims, inclusive of defence costs , arising out of any one accident #

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"94T&AT"Fudgment , award or settlement either in whole or in -art ) unless the "nsured

has re=uested that there shall !e no such limitation and acce-ted the terms of

ury? means death, !odily in>ury, illness or disease of or to any -ersonL#

!) Hamage? means actual and8or -hysical damage to tangi!le -ro-ertyL

c) HPollution? means -ollution or contamination of the atmos-here or of any water

land or other tangi!le -ro-ertyL#

d) HProduct? means any tangi!le -ro-erty after it has left the custody or control of

the "nsured, which has !een designed, s-ecified, formulated, manufactured,

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constructed, installed, sold, su--lied, distri!uted, treated, serviced, altered or

re-aired !y or on !ehalf of the "nsured L

e) HPolicy Period? means the -eriod commencing from effective date and hour as

shown in the Policy 4chedule and terminating at midnight on the e$-iry date as

shown in Policy 4cheduleL

f) HPeriod of "nsurance? means the -eriod commencing from the retroactive date

and terminating on the e$-iry date as shown in the Policy schedule #

g) HAccident? shall means a fortuitous event or circumstance which is sudden,

une$-ected and unintentional including resultant continuous, intermittent, or

re-eated e$-osure arising out of the same fortuitous event or circumstance#

# a) ect

to the ma$imum# time limit laid down under the "ndian imitation Act in force

from time to time#

!) KTect to the imit of indemnity , terms,

conditions and e$-ectations of the -olicy #

This e$tended re-orting -eriod does not in any way reinstate or increase the limit of

indemnity mentioned in the 4chedule of the Policy

7# "


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7#1 officials of the "nsured in their !usiness ca-acity arising out of the

-erformance of their !usiness or in their -rivate ca-acity arising out of

their tem-orary engagement of the "nsured?s em-loyeesL

7#. the Ffficers , ommittees and mem!ers of "nsured?s , canteen, social,

s-orts, medical, fire fighting and welfare organiations in their res-ectiveca-acities as suchL

7# the -ersonal re-resentatives of the estate of any -erson who would

otherwise !e indemnified !y this Policy !ut only in res-ect of ia!ility

incurred !y such -erson #

-rovided always that all such -ersons or -arties shall o!serve, fulfil and !e

su!>ect to the terms, conditions and e$clusions of this Policy as though they

were the "nsured #

/# &F44 "AE""T"4;

ach -erson or -arty indemnified is se-arately indemnified in res-ect of

claims made against any of them !y any other -erson or -arty (other than the

name "nsured ) su!>ect to om-any?s total lia!ility not e$ceeding the limits of

indemnity stated in the schedule of the Policy#

2# 5ect of indemnity !y the Policy# 4uch costs, fees and e$-enses

are called Hefence osts?

*# "


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A laims 4eries vent as defined !elow shall !e deemed to !e one claim and

date of loss shall !e the date when the first claim of the laims 4eries vent is made

in writing against the "nsured#

A laims 4eries vent shall !e defined as a series of two or more claims arising from

one s-ecific common cause, which is attri!uta!le, e g

to the same fault in design, manufacture, instruction for use or la!elling of

-roducts

or to the su--ly of the same -roducts and8or services or to Products and8or

service showing the same defect #

There shall, however, !e no coverage for claims arising from one s-ecific cause

,which are made later than years after the first claim of the series #

*#. FMP94F&G K44 ;

The "nsured shall !ear a om-ulsory $cess of Q C of the limit of

indemnity -er any one accident su!>ect to a ma$imum of &s 1,/6,

666 8# #This om-ulsory $cess shall a--lica!le to !oth (a) death8!odily

in>ury (!) -ro-erty damage , inclusive of defence costs arising out of any

one accident # The om-any?s lia!ility shall attach for the claim in e$cess

of such om-ulsory $cess (and voluntary $cess , if any , o-ted !y the

"nsured )

*# 0F9ect to voluntary

e$cess as mentioned in the 4chedule # This voluntary e$cess shall !e

a--lica!le to !oth (a) death8!odily in>ury claims and (!) -ro-erty damage

claims inclusive of defence costs arising out of any one accident # The

om-any?s ia!ility shall attach for claims in e$cess of such com-ulsory and

voluntary e$cess#

+# K94"F


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0"""#7 arising out of deli!erate , willful or intentional noncom-liance of any

statutory -rovision#

0"""#/ arising out of -ure financial loss such as loss of goodwill, loss of

market etc#

0"""#2 arising out of fines, -enalties, -unitive and8or e$em-lary damagesL

0"""#* directly or indirectly occasioned !y ha--ening through or in

conse=uence of war, invasion ,act of foreign enemy, hostilities(whether war !e

declared or not ) , civil war, re!ellion, revolution, insurrection or military or

usur-ed -owerL

0"""#+ directly or indirectly caused !y or contri!uted to !y or arising from;

a) ionising radiations or contamination !y radioactivity from any nuclearfuel or from any nuclear waste from the com!ustion of nuclear fuel

!) the radioactive to$ic, e$-losive or other haardous -ro-erties of any

e$-losive nuclear assem!ly or nuclear com-onent thereofL

0"""#3 for damage to -ro-erty !elonging to the "nsured or held in trust or in

custody or control of the "nsured or a -erson in the service of the "nsured#

0"""#16 arising out of "n>ury and8or amage occurring -rior to the &etroactive

ate in the 4chedule#

Provided always that in the event of any "n>ury or amage arising from continuous or

continual inhalation, ingestion or a--lication of any su!stance following the covered

accident and where the "nsured and the om-any cannot agree when the "n>ury or

amage occurred, then;

(a) "n>ury shall !e deemed to have occurred when the laimant

first consulted a =ualified medical -ractitioner in res-ect of

such "n>ury#,

(!) amage shall !e deemed to have occurred when it first !ecameevident to the laimant, even if the cause was unknown#

0"""#11 arising out of deli!erate, conscious or intentional disregard of the

"nsured?s technical or administrative management of the need to take all

reasona!le ste-s to -revent claimsL

0"""#1. "n>ury to any -erson under the contract of em-loyment or

a--renticeshi- with the insured their contractor(s) and8or 4u!ontractor(s)

when such in>ury arises out of the e$ecution of such contract#

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0"""#1 arising out of contractual ia!ility unless ia!ility have e$isted in the

a!sence of the s-ecific contractL

0"""#17 arising out of any -roduct guaranteeL

0"""#1/ arising out of claim for failure of the goods or -roducts to fulfil the

-ur-ose for which they were intended#

0"""#12 for lia!ilities arising out of -roducts which have left the custody and

control of the insured -rior to retroactive date s-ecified in the schedule#

3# %


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3#2 The om-any may at any time -ay to the "nsured in connection with any

claim or series of claims under this Policy to which an "ndemnity imit

a--lies the amount of such imit (after deduction of any sums already

-aid) or any lesser amount for which such claims can !e settled and u-on

such -ayment !eing made the om-any shall relin=uish the conduct and

control of an !e under no further lia!ility in connection with such claims#

3#* The Policy and the 4chedules shall !e read together as one contract and

any word or e$-ression to which a s-ecific meaning has !een attached in

any -art of this Policy or the 4chedule shall !ear such s-ecific meaning

wherever it may a--ear# The terms, conditions and e$clusions of this

Policy (and any -hrase or word contained therein) shall !e inter-reted in

accordance with "ndia aw#

3#+ The "nsured shall kee- accurate records of annual turnover which term

shall include all levia!le duties and at the time of renewal of "nsurancesdeclare such details as the om-any may re=uire# The om-any shall at

all reasona!le time have free access to ins-ect such records#

3#3 "f in the event of a claim under this Policy, there !e any other "nsurance or

"nsurances effected !y the "nsured or any other -erson covering the same

lia!ility, then the om-any shall not !e lia!le to -ay or contri!ute more

than its ratea!le -ro-ortion of such lia!ility#

3#16 The om-any may cancel this Policy !y giving thirty days? notice in

writing of such cancellation to the "nsured?s last known address and in

such an event the om-any will return a -rorata -ortion of the -remium

(su!>ect to a minimum retention of ./ -er cent of the annual -remium) for

the une$-ired -art of the "nsurance#

The Policy may also !e cancelled !y the "nsured !y giving thirty days? notice in

writing to the om-any, in which event the om-any will retain -remium at short

-eriod scale -rovided there is no claim under the Policy during the -eriod of

"nsurance#

"n case of any claim under the Policy no refund of -remium shall !e allowed#

3#11 "n the event of lia!ility arising under the Policy or the -ayment of

claim under the Policy, Aggregate imit of "ndemnity -er any one year

under the Policy shall get reduced !y the e$tent of =uantum of ia!ility to

!e -aid or actual -ayment of such claim# 9nder no circumstances, it shall

!e -ermissi!le to reinstate the limit of indemnity to the original level, even

on -ayment of e$tra -remiums#

3#1. "t is also here!y further e$-ressly agreed and declared that if the

om-any shall disclaim lia!ility to the "nsured for any claim hereunder

and such claim shall not within 1. calendar months from the date of such

disclaimer have !een made the su!>ect matter of suit in a court of law then

.2


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TB F&"


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0ury or -ro-erty damage occurring within the

vendor?s -remises#

.# The insurance does not a--ly to any -erson or organiation, as

insured from whom the named insured has ac=uired such -roducts or

any ingredient, -art or container, entering into, accom-anying or

containing such -roducts#

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udgment, award or settlement

made within countries which o-erate under the laws of the 9nited 4tates of

America or anada (or to any order made anywhere in the world to enforcesuch >udgment, award or settlement either in whole or in -art) such e$tension

is only granted where so stated in the 4chedule to the Policy and where a

s-ecific amount has !een entered against HA--lica!le $cess? , and where a

s-ecific date has !een entered against &etroactive ate in the 4chedule

under the heading ury or

amage occurred, then;

(a) "n>ury shall !e deemed to have occurred when the claimant

first consulted a =ualified medical -ractitioner in res-ect of

such in>uryL

(!) amage shall !e deemed to have occurred when it first

!ecame evident to the claimant, even if the cause was

unknown#

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4u!>ect in all other res-ects to the terms and e$clusions of the Policy which shall not

!e deemed in any way whatsoever to override, modify or alter any of the s-ecific

terms and e$clusions a--lica!le to this $tension lause#

.


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DDDDDDDF# T#

AddressRRRRRRRRRRRRRRRRR

RRRRRRRRRRRRRRRRRR

P&FPF4A 5F&M 5F& P&F9T "AE""TG "


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(iii) goods re-aired, serviced, tested and -rocessed

actual turnover D D D

16#E 5or the a!ove, -lease give the -ro>ected turnover for the -ro-osed -eriod of

insurance as under ;

(i) %oods manufactured

(ii) %oods sold or su--lied

(iii) %oods re-aired, serviced, tested and -rocessed

(Please attach leaflets, !rochures and8or any other literature)#

11# Please furnish details of -roducts to !e considered

5or insurance which are manufactured and8or designed :

(a)


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rrors in -roducts#

13# o your -roducts com-ly with standards like

"4" or any other 4tandardsS

.6# Bave your -roducts ever !een su!>ect to anyn=uiry or investigation !y any %overnment

Agency, concerning the efficiency8ade=uacy or la!elling,

Baardous contents or safetyS "f so, -lease give full details#

.1# @hat is the failure rate of each -roduct after hand overS

..# o you issue guarantees and8or warranties to -urchasersS

"f so, for what -eriod do you guarantee and8or warrant your

ProductS

.# Particulars regarding directions for use;(a) "s it !y -rinting on container or -roduct8

(!) "s it !y se-arate leaflet or !rochureS

(c) "s the haard warning clearly shownS

.7# Please furnish claims history for the last three

Gears in the following format ;

(a) Gear 13## 13D 13D

(!)ury ; &s#

Pro-erty amage ; &s#

ost of defense action" &s#

Total amt# of -ending claims;

Eodily in>ury; &s#

Pro-erty amage; &s#

ost of defense action; &s#

./# Are you aware of any incidents, conditions, defects,ircumstances or sus-ected defects which may result

"n claimS

.2# Bave your Pro-osal or renewal !een declined or -remium

"ncreased, s-ecial terms im-osed !y any "nsurerS

"f so, -lease give -articulars;

.*# Please indicate the limit of indemnity re=uired for

domestic sales#

(i) Any one accident;

(ii)Aggregate during the Policy -eriod#

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.+# Please indicate the 0oluntary 9#4#A# All other

$cess for each claim anada countries

(in addition to om-ulsory $cess) including "ndia

you are willing to !ear#

.3#Please =uantify sales turnover

Productwise for the last years

as under ;

(a) omestic

(!) 94A8anada

(c) F countries (to list)

(d) Fther countries including nonF countries#

6# Bow long have you !een e$-orting to the following countries and do you re=uire cover for

e$-orts to these countriesS

(a) 94A and anada;

(!) F countries

(c) Fther countries including

nonF countries

(over for e$-orts will !e granted only if

domestic turnover is covered)

1# o you re=uire imited 0endor?s ndorsementS

(Please enclose a co-y of the contract with the

0endor8s and give the names to each -roduct

of e$-ort to such countries)

/. o you com-ly with 94A8anadian 4tate85ederal

aws84tandards a--lica!le to each -roduct of

e$-ort to such countriesS

# Please give details of any -ower of attorney

on Assets in 94A8anada#

7# Policy -eriod; 5rom 1.#66 midnight ofRRRRRRR

to 1.#66 midnight ofRRRRR

"8@e desire to effect an "nsurance in terms of the Product ia!ility of

theDDD#om-any against the limits of indemnity s-ecified a!ove and "8@e here!y

declare that all statutory -rovisions relating to my8our !usiness -ro-osed for

"nsurance are com-lied with# "8@e further declare that all the a!ovestatements and

-articulars are true, and "8@e have not omitted, su--ressed, misre-resented or

misstated any material fact and "8 @eagree t>at thisdeclaration shall !e the !asis of

the contract !etween me8us and the om-any and !e incor-orated therein#

2


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Place ;

ate; 4ignature of the Pro-oser

4T"F< :71 F5 "


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7# "s the -rogramme regularly checked and u-datedS

/# "n the a!sence of written -rogramme, what

other arrangements e$istS

2# Bas a Product 4afety ommittee !een formedS

Bow fre=uently do they meetS

*# oes ommittee include decision makers from;

(a) esign ngineers

(!)


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a) "s this undertaken S

!) @hat system is used S

oes this include consideration

of misuse of -roduct as well as

correct use S

c) Bow is information disseminated

and a--lied in design8manufacture etcS

d)oes it include consideration of -revious history S

.# oes the -roduct conform to a recognied 4tandards

e#g# "#4#" 8 E#4#" etc or any code of Practice followed S

# "s outside technical knowhow 8 colla!oration8consultancy sought S

%ive details ;

7#Are all in!uilt safety devices8guard etc # designed to failsafe S

%ive etails ;

/# @hat warnings are dis-layed on -roduct SAre these ade=uate

and dis-layed -rominently S

2# @hat would !e the effect of failure of -roduct to -erform

its intended function S

E# esign ;

1# To what e$tent is design undertaken !y the insured S

.# "s there a statement of the re=uirements of the design

e$-ressed !y drawings and -erformance s-ecifications and is there

international documentation of -rocess layouts, Process 4-ecification

Test schedules, etc

#Bow are design changes handled and are systems

ade=uate to ensure old design withdrawn S

7#Bow are new designs tested -rior to

commencement of Production S

@hat records are ke-t S

# Material used ;

1# @hat are the materials8com-onents used for each

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-roduct S

.# Are any com-onents su!contracted S

%ive details of s-ecification ado-ted #

# Bow is =uality of the material8com-onents checked S%ive details of checking

7# @hat would !e effect of faulty material8com-onent on the

finished -roduct S

5# Packaging8a!elling ;

1#


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/# ondition of sale :

(Attach co-y2 if availa!le)

2# "s it necessary for -roduct to have any test certificate S

"f so, who -rovides thisS

*# @hat records are ke-t S

E# istri!ution ;

1# @hat is your distri!ution network S

.# @hat method of trans-ort is used S

# @hat des-atch control -rocedures and records are usedS

7# oes the -roduct have a shelf lifeS

"f so, state -eriod and how this is indicated

to customer, e#g# sell !y datesS

/# "s there any interim storage S

%ive details #

2# "s the trans-ort use availa!le for other -roductsS

"f a--lica!le what cleansing and ins-ection methods are used !etween -roductsS

# Advice to customers in -roduct use ;

1# @hat facilities do the "nsured have for customer en=uiries

relating to the use of the -roduct S

.# @hat records are ke-t of additional advice given S

# "s any guidance8advice given on customer -remises S

%ive details

# "nstallation ;

1# @hat -ercentage of -roduct is installed !y "nsured S

.# o insured undertake full commission of -roduct S

# "s the installation !eing done !y =ualified and skilled staff S

0"" # ustomer om-laints ;

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"K# Fther onsiderations ;

1# "s there any other factor likely to affect the risk (e#g# items

of local knowledge : language -ro!lem general law management

attitude dis-layed !y -oor housekee-ing etc)S

.# omments on su-ervisor and la!our relation

K# &ecommendations ;

Please -rovide :

1# Positive assessment of haards related to -roducts#

.# Assessment of organiations and methods em-loyed (in the light of information

o!tained) to deal with such haards and -roduce to a customer a -roduct whichis !oth safe and relia!le in use#

#An o-inion relating to acce-ta!ility at the time of survey and the trends antici-ated

"n the risk in the future #

Please consider ;

1# All manufactured -roducts have a failure rate #

.# an a defective -roduct !e su--liedS

# @hat is -ro!a!ility of a defective -roduct -roducing a claimS

7# @hat would !e likely cost of that claim and its effect S

/# "f we had to defend an action : an we say it was a good -roduct : designed

and -roduced with safety in mind and sold in a safe manner with ade=uate

instructions #

Place ; 4ignature

ate;

product liabilty

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