Public Liability Insurance
The death incident of singer KK raises various questions about public liability insurance policy in India. However, the cause of the death is still unknown to the public. Nevertheless, different questions arose about the arrangements of the concert. Various housing media allegedly reported that the air conditioner was not working properly, which caused the loss of his life due to suffocation. In addition, the auditorium was overcrowded as per the investigation.
The concert organizers were accountable for ensuring public safety at the venue. But, it was revealed that no sign of an ambulance or medical equipment could be noticed at the concert. However, it is mandated for shopping malls, schools, and restaurants to deploy at least one staff to provide medical aid to the public.
Need for Public Liability Insurance
A company needs public liability insurance to ensure the safety of the public and discharge its liability towards unintentional loss or damage caused to the public. In addition, an organization involved in multiple business operations and processes needs comprehensive liability insurance cover, as a faulty product may cause damage or injury to any of the consumers.
Benefits of Comprehensive Liability Insurance
The comprehensive liability insurance policy is not a statutory requirement. However, it is crucial for an organization to buy an insurance policy that provides protection against liabilities that may arise within business premises.
Let us examine how commercial liability insurance could be beneficial for any organization.
Bodily injury
It protects or indemnifies an organization against any bodily injury suffered by a third party.
Personal injury
An act of libel or slander might cause the identity of a person. Hence, he may sue an organization under a defamation case. The insurance policy, under these circumstances, pays appropriate compensation to the injured third party.
Legal damage
An individual may sue the organization in case of a breach of legal rights granted by the constitution. Hence, the insurance policy also protects an organization from infringement or violation of a legal right of an individual.
Exception of Public Liability Insurance
Any voluntary act of harming a third party under the following circumstances will not be payable by the insurance provider:
- Cases of contractual or legal liabilities
- Ignorance of legal or safety provisions
- Defamation, Loss of goodwill, libel, mental loss or damage, false arrest, and slander
Conclusion
In India, various tragedies take place in a year. However, people rarely get compensation for loss/damage/bodily injuries under public liability insurance policy. Instead, they wait for the government to announce compensation for them. Therefore, people need to understand the significance of public liability insurance to ensure to claim damages caused due to business operations.
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