The Public Liability Insurance in India covers all those amounts, which becomes legally liable to pay the insured person as compensation in relation to the third party accidental death / bodily injury/illness and property loss.

During the policy period, arising out of claims made in the first written form against the insured, in which the legal costs and the previous assurances of the insurer Includes expenses incurred with that other conditions of the usual range of compensation and policy are subject to rules and exceptions.


Source :- insureafrika . co . ke


The public liability insurance in India covers the sum which the assured becomes legally liable to pay for the damages to a third party or third parties as a result of accidental bodily injury, death, loss or damage to the property belonging to that third person or persons.

What Are The Types Of Public Liability Insurance In India

There are mainly 3 types of public liability insurance in India. These public liability insurance policies are as follows.

Public Liability Act

This is a compulsory policy to be taken by the owners, transporters or users of the dangerous element as defined under the Environment Protection Act 1986; more than the least amount stated under the Public Liability Insurance Act 1991 in India.

Public Liability Non-Industrial Risks

For Non-Manufacturing objects such as BPOs, IT companies, Schools, Hotels, Clubs, and Restaurants

Public Liability Industrial Risks

For industrial units, warehouse, and godowns

General Instructions For Public Liability Insurance In India

Source :- wexfordchamber . ie

General Instructions For Public Liability Insurance In India

All written communications of the collector should be brought to the notice promptly and given to any information required about it

  • No liability acceptable
  • Claims filed after five years of their being will not be considered
  • The company may ask for turnover records
  • Ratio liability in case of other insurance policies
  • Non-disclosure or misstatement will affect the acceptance of your claim

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Exception Business Categories

Some essential exceptions under the policy are as follows:

  • No liability for railways and aircraft / airside operations
  • No liability of defense establishments
  • Due to the faulty design of the premises due to faulty design
  • A theme park, water park, and sports set-ups, swings etc.
  • Ships, including their navigation
  • Manufacturing/construction facilities in the US / Canada

Ability Of The Public Liability Insurance In India

Source :- cginsurance . com 

Ability Of The Public Liability Insurance In India

  • The range of compensation will be offered in proportion to AOA: AoO is 1: 3
  • AoA Proposer can’t be less than the paid-up capital of the company
  • AoA can’t be more than 5 million rupees
  • The maximum compensation that can be offered is AOA: AoO – INR 5 corer: INR 15 corer
  • The policy can only be issued on claims made on the basis of defense

Coverage Exception

Any intentional noncompliance of statutory provision

  • Penalties
  • Penal
  • Exemplary Loss
  • Arising under any other law
  • The threat of war and atomic group

Under the ownership of the Insured, on lease or lease or rent purchase or otherwise resulting from the loss of property in custody or in care of the insurance policy.

Add-On Covers

Public Liability insurance in India can be extended to cover even the legal expenditures ascending out of

  • Intentional or willful or deliberate non-compliance of any constitutional provision.
  • Accidental and sudden pollution
  • Coverage for the defense cost sustained with the previous consent
  • Transport Risk
  • Carriage of treated wastes etc.