Public Liability - 3rd Principal


Public Liability policy indemnifies the insured in respect of its legal liability to pay compensa-tion for accidental bodily injury to or accidental property damage of Third Party caused by or through the negligence of the insured or his employees or by any defect in the Insured’s premises or any defects in the ways, works of the insured. In addition, this policy also pays for the litigation costs and expenses for defense that are incurred with the written consent of the Company.

B. Scope of Cover
i. Accidental bodily injury to Third Party
ii. Accidental property damage belonging to Third Party
iii. Any legal expenses incurred with Company’s written consent
The limit of indemnity amount should represent the maximum liability which Insured estimate that his business could possibly incur.

C. Limit of Indemnity
The Indemnity amount is categorized into
i. Maximum indemnity per accident: A fixed amount determined by the Insured according to the exposure and circumstances of a particular risk
ii. Maximum indemnity for the period in aggregate: Normally unlimited during the period covered
However, for special and hazardous risks, it is prudent to fix a maximum indemnity limit per accident as well as in the aggregate for the period of insurance.

D. Minimum Information Required for a Quotation
i. Limit of Indemnity required
ii. Territorial Limit of cover required
iii. Turnover/Sales/Contract value
iv. Nature of work or business
v. Number of employees and their wage roll
vi. Frequency of visitors to Insured’s premises
vii. Location – whether in busy or secluded area
viii. Other risks like signboards, neon signs, hoarding, etc.
ix. Whether Insured’s liability limited by any statute, such as in the case of hotels
x. Past claims/loss experience

E. Excess
It is common market practice to impose an Excess on Third Party property damage and none for Third Party Bodily injury.

F. Extension of Cover
At an additional premium, and relevant to the Insured’s trade/occupation, the policy can be
extended to cover:
i. Fire and explosion (other than explosion or rupture of any steam boiler).
ii. Loading and unloading
iii. Cross liability
iv. Temporary visits overseas
v. Car park liability
vi. Private work done for and/or the behalf of directors and executives of the Insured
vii. Defective sanitary arrangements
viii. Sports and social club
ix. Neon/advertising signs
x. Employees effect
xi. First aids facilities
xii. Non-owned vehicle
xiii. Pedal cycle
xiv. Tenant’s liability
xv. Lift
xvi. Food and drink poisoning
xvii. Strike riot and civil commotion
xviii. Legal liability caused by contractor/sub-contractors (Contingent liability only)
xix. Used of plant and equipment
xx. Social and sport activities

Public Liability insurance is NOT allowed to be extended to cover for “test driving liability” particularly with regards to customer’s motor vehicle not belonging to the Insured.
The issuance of any non-motor policy which extends to cover third party liabilities arising from the use of a motor vehicle licensed for use on public road is a breach of General Regulation 1(b) of the Motor Tariff.
“Test driving liability”* provides two types of covers for the Insured:
i. Third party property damage and/or bodily injury/death
ii. Damage to customer’s vehicle which is used by the Insured or Insured’s employers during the test-driving

G. Minimum Premium
RM75.00
(Before RM10.00 stamp duty)

H. Refer/Decline Risk
Refer Risks
i. Blasting (unless incidental)
ii. Cabarets/Night Clubs/Lounge
iii. Cinemas
iv. Circuses

Decline Risks
i. Organisation of races with motor propelled vehicles
ii. Construction/maintenance and/or demolition of bridges
iii. Aviation risks of any kind including any liability of airports and control towers
iv. Navigation other than inter-island vessels
v. Deep sea fishing except vessels within territorial waters
vi. Manufacture and handling of any kind of explosives and highly inflammable or chemically or biologically dangerous materials except explosive stores and used by contractors for construction blasting only
vii. Contractual Guarantees of any kind
viii. Professional Liabilities of whatsoever kind including directors and officers, errors and omissions and malpractice 
ix. Public and/or products liability policies whose limit of indemnity does not limit the reinsurer’s maximum liability for any one event/occurrence
x. Gradual Pollution Liability (non-accidental) of any kind (per Industries, Seepage, Pollution & Contamination Clause)
xi. Marine and P&I (Protection and Indemnity) risks
xii. Decennial Liability (RC Décennale) and comparable risks
xiii. Operations of “Offshore Platforms” and/or “Offshore rigs”
xiv. Liability sections of combines/package policies for industrial risks, if the liability risk is not underwritten, rated and accounted for separately by the Company
xv. Liability section of erection all risks, contractors all risks
xvi. All claims and losses based upon, arising out of, directly and indirectly resulting from or in consequence of, or any way involving:
a. Asbestos, or
b. Any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of asbestos or
exposure or potential exposure to asbestos 
xvii. Ownership, operation or use of:
a. Automobiles other than under Motor Contingency cover in respect of non-owned vehicles
b. Aircraft and air cushioned vehicles including construction, repair or installation work on aircrafts
c. Railways, tramways and cable-cars, chair-lifts
d. Sea Ports unless accepted by special acceptance
e. Dry Docks, Docks, Quays and Wharves
f. Shipbuilding, ship repairing and ship breaking yards including construction, repair or installation work on vessels. This exclusion does not include general
maintenance/repairs carried out by general contractors, and incidental contracts including work on board vessels
g. Onshore and offshore Oil and Gas operations, unless agreed as special acceptance by leading reinsurer only
h. Amusement parks and devices, stadiums and stands
i. Ski resorts
j. Waste disposals and deposits (unless pollution is excluded)
xviii. Contractors
a. Engaged exclusively in wrecking and demolition
b. Engaged in construction and maintenance of dams
c. Engaged in subaqueous work
xix. Mining, Quarrying, Excavating
a. Underground and underwater mines and all underground services in connection therewith
b. Tunnelling exceeding 100 metres in length
xx. Gases, Explosives and Toxics
a. Operations in connection with theproduction, storage, distribution and/or sale of natural gas other than distribution of cooking gas
xxi. Oil Companies
a. Drilling, producing, refining and/or distributing (other than general distributors). This exclusion shall not apply to such risks as small isolated tanks and storage tanks
xxii. Public Utilities, Public Authorities(including fire brigades, police and law enforcement),
Municipalities, Water Boards, Electricity and Gas Boards


I. Rating
Rates for this class of insurance should be determined by the following:
i. Limit of indemnity (LOI)
ii. The occupation and maintenance of the premises
iii. Exposure of risk to the Third Party, either person or property
iv. The likelihood of an accident happening in the Insured’s premises which can give rise to a claim by the Third Party
As a general guide the following rates basedon a 12 months cover and a limit of indemnity upto RM100,000 any one accident is to be charged. These rates are based on the Company’s standard policy wording. If extensions are required, please refer to Underwriters.




Public Liability policy indemnifies the insured in respect of its legal liability to pay compensa-tion for accidental bodily injury to or accidental property damage of Third Party caused by or through the negligence of the insured or his employees or by any defect in the Insured’s premises or any defects in the ways, works of the insured. In addition, this policy also pays for the litigation costs and expenses for defense that are incurred with the written consent of the Company.

B. Scope of Cover
i. Accidental bodily injury to Third Party
ii. Accidental property damage belonging to Third Party
iii. Any legal expenses incurred with Company’s written consent
The limit of indemnity amount should represent the maximum liability which Insured estimate that his business could possibly incur.

C. Limit of Indemnity
The Indemnity amount is categorized into
i. Maximum indemnity per accident: A fixed amount determined by the Insured according to the exposure and circumstances of a particular risk
ii. Maximum indemnity for the period in aggregate: Normally unlimited during the period covered
However, for special and hazardous risks, it is prudent to fix a maximum indemnity limit per accident as well as in the aggregate for the period of insurance.

D. Minimum Information Required for a Quotation
i. Limit of Indemnity required
ii. Territorial Limit of cover required
iii. Turnover/Sales/Contract value
iv. Nature of work or business
v. Number of employees and their wage roll
vi. Frequency of visitors to Insured’s premises
vii. Location – whether in busy or secluded area
viii. Other risks like signboards, neon signs, hoarding, etc.
ix. Whether Insured’s liability limited by any statute, such as in the case of hotels
x. Past claims/loss experience


E. Excess
It is common market practice to impose an Excess on Third Party property damage and none for Third Party Bodily injury.

F. Extension of Cover
At an additional premium, and relevant to the Insured’s trade/occupation, the policy can be
extended to cover:
i. Fire and explosion (other than explosion or rupture of any steam boiler).
ii. Loading and unloading
iii. Cross liability
iv. Temporary visits overseas
v. Car park liability
vi. Private work done for and/or the behalf of directors and executives of the Insured
vii. Defective sanitary arrangements
viii. Sports and social club
ix. Neon/advertising signs
x. Employees effect
xi. First aids facilities
xii. Non-owned vehicle
xiii. Pedal cycle
xiv. Tenant’s liability
xv. Lift
xvi. Food and drink poisoning
xvii. Strike riot and civil commotion
xviii. Legal liability caused by contractor/sub-contractors (Contingent liability only)
xix. Used of plant and equipment
xx. Social and sport activities

Public Liability insurance is NOT allowed to be extended to cover for “test driving liability” particularly with regards to customer’s motor vehicle not belonging to the Insured.
The issuance of any non-motor policy which extends to cover third party liabilities arising from the use of a motor vehicle licensed for use on public road is a breach of General Regulation 1(b) of the Motor Tariff.
“Test driving liability”* provides two types of covers for the Insured:
i. Third party property damage and/or bodily injury/death
ii. Damage to customer’s vehicle which is used by the Insured or Insured’s employers during the test-driving

G. Minimum Premium
RM75.00
(Before RM10.00 stamp duty)

H. Refer/Decline Risk
Refer Risks
i. Blasting (unless incidental)
ii. Cabarets/Night Clubs/Lounge
iii. Cinemas
iv. Circuses

Decline Risks
i. Organisation of races with motor propelled vehicles
ii. Construction/maintenance and/or demolition of bridges
iii. Aviation risks of any kind including any liability of airports and control towers
iv. Navigation other than inter-island vessels
v. Deep sea fishing except vessels within territorial waters
vi. Manufacture and handling of any kind of explosives and highly inflammable or chemically or biologically dangerous materials except explosive stores and used by contractors for construction blasting only
vii. Contractual Guarantees of any kind
viii. Professional Liabilities of whatsoever kind including directors and officers, errors and omissions and malpractice 
ix. Public and/or products liability policies 
whose limit of indemnity does not limit the reinsurer’s maximum liability for any one event/occurrence
x. Gradual Pollution Liability (non-accidental) of any kind (per Industries, Seepage, Pollution & Contamination Clause)
xi. Marine and P&I (Protection and Indemnity) risks
xii. Decennial Liability (RC Décennale) and comparable risks
xiii. Operations of “Offshore Platforms” and/or “Offshore rigs”
xiv. Liability sections of combines/package policies for industrial risks, if the liability risk is not underwritten, rated and accounted for separately by the Company
xv. Liability section of erection all risks, contractors all risks
xvi. All claims and losses based upon, arising out of, directly and indirectly resulting from or in consequence of, or any way involving:
a. Asbestos, or
b. Any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of asbestos or
exposure or potential exposure to asbestos 
xvii. Ownership, operation or use of:
a. Automobiles other than under Motor Contingency cover in respect of non-owned vehicles
b. Aircraft and air cushioned vehicles including construction, repair or installation work on aircrafts
c. Railways, tramways and cable-cars, chair-
lifts
d. Sea Ports unless accepted by special acceptance
e. Dry Docks, Docks, Quays and Wharves
f. Shipbuilding, ship repairing and ship breaking yards including construction, repair or installation work on vessels. This exclusion does not include general
maintenance/repairs carried out by general contractors, and incidental contracts including work on board vessels
g. Onshore and offshore Oil and Gas operations, unless agreed as special acceptance by leading reinsurer only
h. Amusement parks and devices, stadiums and stands
i. Ski resorts
j. Waste disposals and deposits (unless pollution is excluded)
xviii. Contractors
a. Engaged exclusively in wrecking and demolition
b. Engaged in construction and maintenance of dams
c. Engaged in subaqueous work
xix. Mining, Quarrying, Excavating
a. Underground and underwater mines and all underground services in connection therewith
b. Tunnelling exceeding 100 metres in length
xx. Gases, Explosives and Toxics
a. Operations in connection with the production, storage, distribution and/or sale of natural gas other than distribution of cooking gas
xxi. Oil Companies
a. Drilling, producing, refining and/or distributing (other than general distributors). This exclusion shall not apply to such risks as small isolated tanks and storage tanks
xxii. Public Utilities, Public Authorities (including fire brigades, police and law enforcement),
Municipalities, Water Boards, Electricity and Gas Boards


I. Rating
Rates for this class of insurance should be determined by the following:
i. Limit of indemnity (LOI)
ii. The occupation and maintenance of the premises
iii. Exposure of risk to the Third Party, either person or property
iv. The likelihood of an accident happening in the Insured’s premises which can give rise to a claim by the Third Party
As a general guide the following rates based on a 12 months cover and a limit of indemnity up to RM100,000 any one accident is to be charged. These rates are based on the Company’s standard policy wording. If extensions are required, please refer to Underwriters.



Public Liability policy indemnifies the insured in respect of its legal liability to pay compensa-tion for accidental bodily injury to or accidental property damage of Third Party caused by or through the negligence of the insured or his employees or by any defect in the Insured’s premises or any defects in the ways, works of the insured. In addition, this policy also pays for the litigation costs and expenses for defense that are incurred with the written consent of the Company.

B. Scope of Cover
i. Accidental bodily injury to Third Party
ii. Accidental property damage belonging to Third Party
iii. Any legal expenses incurred with Company’s written consent
The limit of indemnity amount should represent the maximum liability which Insured estimate that his business could possibly incur.

C. Limit of Indemnity
The Indemnity amount is categorized into
i. Maximum indemnity per accident: A fixed amount determined by the Insured according to the exposure and circumstances of a particular risk
ii. Maximum indemnity for the period in aggregate: Normally unlimited during the period covered
However, for special and hazardous risks, it is prudent to fix a maximum indemnity limit per accident as well as in the aggregate for the period of insurance.

D. Minimum Information Required for a Quotation
i. Limit of Indemnity required
ii. Territorial Limit of cover required
iii. Turnover/Sales/Contract value
iv. Nature of work or business
v. Number of employees and their wage roll
vi. Frequency of visitors to Insured’s premises
vii. Location – whether in busy or secluded area
viii. Other risks like signboards, neon signs, hoarding, etc.
ix. Whether Insured’s liability limited by any statute, such as in the case of hotels
x. Past claims/loss experience


E. Excess
It is common market practice to impose an Excess on Third Party property damage and none for Third Party Bodily injury.

F. Extension of Cover
At an additional premium, and relevant to the Insured’s trade/occupation, the policy can be
extended to cover:
i. Fire and explosion (other than explosion or rupture of any steam boiler).
ii. Loading and unloading
iii. Cross liability
iv. Temporary visits overseas
v. Car park liability
vi. Private work done for and/or the behalf of directors and executives of the Insured
vii. Defective sanitary arrangements
viii. Sports and social club
ix. Neon/advertising signs
x. Employees effect
xi. First aids facilities
xii. Non-owned vehicle
xiii. Pedal cycle
xiv. Tenant’s liability
xv. Lift
xvi. Food and drink poisoning
xvii. Strike riot and civil commotion
xviii. Legal liability caused by contractor/sub-contractors (Contingent liability only)
xix. Used of plant and equipment
xx. Social and sport activities

Public Liability insurance is NOT allowed to be extended to cover for “test driving liability” particularly with regards to customer’s motor vehicle not belonging to the Insured.
The issuance of any non-motor policy which extends to cover third party liabilities arising from the use of a motor vehicle licensed for use on public road is a breach of General Regulation 1(b) of the Motor Tariff.
“Test driving liability”* provides two types of covers for the Insured:
i. Third party property damage and/or bodily injury/death
ii. Damage to customer’s vehicle which is used by the Insured or Insured’s employers during the test-driving

G. Minimum Premium
RM75.00
(Before RM10.00 stamp duty)

H. Refer/Decline Risk
Refer Risks
i. Blasting (unless incidental)
ii. Cabarets/Night Clubs/Lounge
iii. Cinemas
iv. Circuses

Decline Risks
i. Organisation of races with motor propelled vehicles
ii. Construction/maintenance and/or demolition of bridges
iii. Aviation risks of any kind including any liability of airports and control towers
iv. Navigation other than inter-island vessels
v. Deep sea fishing except vessels within territorial waters
vi. Manufacture and handling of any kind of explosives and highly inflammable or chemically or biologically dangerous materials except explosive stores and used by contractors for construction blasting only
vii. Contractual Guarantees of any kind
viii. Professional Liabilities of whatsoever kind including directors and officers, errors and omissions and malpractice 
ix. Public and/or products liability policies 
whose limit of indemnity does not limit the reinsurer’s maximum liability for any one event/occurrence
x. Gradual Pollution Liability (non-accidental) of any kind (per Industries, Seepage, Pollution & Contamination Clause)
xi. Marine and P&I (Protection and Indemnity) risks
xii. Decennial Liability (RC Décennale) and comparable risks
xiii. Operations of “Offshore Platforms” and/or “Offshore rigs”
xiv. Liability sections of combines/package policies for industrial risks, if the liability risk is not underwritten, rated and accounted for separately by the Company
xv. Liability section of erection all risks, contractors all risks
xvi. All claims and losses based upon, arising out of, directly and indirectly resulting from or in consequence of, or any way involving:
a. Asbestos, or
b. Any actual or alleged asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of asbestos or
exposure or potential exposure to asbestos 
xvii. Ownership, operation or use of:
a. Automobiles other than under Motor Contingency cover in respect of non-owned vehicles
b. Aircraft and air cushioned vehicles including construction, repair or installation work on aircrafts
c. Railways, tramways and cable-cars, chair-
lifts
d. Sea Ports unless accepted by special acceptance
e. Dry Docks, Docks, Quays and Wharves
f. Shipbuilding, ship repairing and ship breaking yards including construction, repair or installation work on vessels. This exclusion does not include general
maintenance/repairs carried out by general contractors, and incidental contracts including work on board vessels
g. Onshore and offshore Oil and Gas operations, unless agreed as special acceptance by leading reinsurer only
h. Amusement parks and devices, stadiums and stands
i. Ski resorts
j. Waste disposals and deposits (unless pollution is excluded)
xviii. Contractors
a. Engaged exclusively in wrecking and demolition
b. Engaged in construction and maintenance of dams
c. Engaged in subaqueous work
xix. Mining, Quarrying, Excavating
a. Underground and underwater mines and all underground services in connection therewith
b. Tunnelling exceeding 100 metres in length
xx. Gases, Explosives and Toxics
a. Operations in connection with the production, storage, distribution and/or sale of natural gas other than distribution of cooking gas
xxi. Oil Companies
a. Drilling, producing, refining and/or distributing (other than general distributors). This exclusion shall not apply to such risks as small isolated tanks and storage tanks
xxii. Public Utilities, Public Authorities (including fire brigades, police and law enforcement),
Municipalities, Water Boards, Electricity and Gas Boards


I. Rating
Rates for this class of insurance should be determined by the following:
i. Limit of indemnity (LOI)
ii. The occupation and maintenance of the premises
iii. Exposure of risk to the Third Party, either person or property
iv. The likelihood of an accident happening in the Insured’s premises which can give rise to a claim by the Third Party
As a general guide the following rates based on a 12 months cover and a limit of indemnity up to RM100,000 any one accident is to be charged. These rates are based on the Company’s standard policy wording. If extensions are required, please refer to Underwriters.



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