The document outlines the need for Comprehensive General Liability (CGL) insurance, emphasizing its coverage for third-party bodily injury and property damage arising from business operations. It highlights various claims examples, such as injuries from accidents and damages due to product defects, and details the specific coverage provided, including public liability and product liability. Additionally, it discusses the requirements, exclusions, and process for obtaining CGL insurance, along with key sectors that require such coverage.

1. Comprehensive General Liability

2. Agenda
Need for CGL Cover
CGL Liability Insurance – The Product

3. News Making Headlines
Particles of glass contained in
Colgate toothpaste cause
bleeding in gums, leading to
damages worth INR 2 mn to
paid
April 2013,Times of India,
Mumbai
Mumbai victim of French
breast implant fraud relives
her terror
Tomato sauce got
damaged at the Nestlé's
plant due to defective
pump used to pack sauce.
Pump manufacturer was
liable to pay INR 2.5 mn
damages.
One person died because of
lift crash in Delhi, lift
manufacturer was asked to
pay the compensation of
around INR 10 mn

4.  Liability policies generally effected:
 To satisfy statutory requirements
 To satisfy contractual requirements
 Demanded by the legal scenario of the country of
operations
 To effect risk transfer
Need for CGL Policy

5. Claims Examples - CGL
• Senior Gynecologist fell at an office parking which was under renovation and
there was a slight dip in the elevation. He fractured his right wrist preventing him
from performing standard obstetrical procedures. Past Medical bills and lost
wages were approximately $200,000. Trip and Fall Claim was settled for -
$875,000
 89 people choked to death in a Kolkata hospital when
smoke from fire in the basement spread through the
central AC ducting and engulfed the seven floors above
 A person died due to car crash by valet inside a hotel in
Mumbai, compensation demanded INR 5 million
 Seven-year-old died after falling from the sixth floor of a hotel when the acrylic
tiles he was standing on, caved in
 19 persons including 13 children, died in a fire that raged through an upscale
shopping mall in Doha/Qatar recently

6. Claims Examples – CGL contd…
 One person died because of lift crash in Delhi, lift manufacturer may be asked to
pay the compensation of around INR 10 million
 Vioxx drug resulted in several deaths across the
globe, Pharma giant Merck ended up paying
billions of dollars as compensation to
persons suffered.
 Tyre failure lead to death of car passengers,
FireStone asked to pay multi million compensation
to dependents
 Kelsey Sasser a young girl is paralyzed during a 2000 crash due to a faulty back
seat latch in her sedan
 Ford Motor Co. - ordered to pay nearly $14 million in punitive damages
 This money in addition to $ 33.9 million
in compensatory damages awarded
the family of Kelsey Sasser

7. Agenda
Need for CGL cover
CGL Liability Insurance – the Product

8. Coverage Details - CGL
Fire Damage
Extension
Public Liability
Medical
Payments
Expenses
Comprehensive
General Liability
Product Liability
Product
Completed
Operations
Personal
&
Advertising
Injury

9. Coverage Details
 Insurance covering ‘Third Party’:
 Bodily injury
 Property damage
 Limited Contractual liability
 Products and completed operations
 Also cover personal and advertising injury liability
 Commercial General Liability (CGL) policy covers Liability
exposures arising out of business operations
 In practice, CGL operates as a combination of Public Liability
and Product Liability policies

10. Public Liability Coverage
 Any claim for compensation that may arise due to an accident
causing
 Bodily Injury or Property damage
 Arising from
 Manufacturing operations
 Pollution
 Transportation
 Business Operations

11. Product Liability Coverage
 Any claim for compensation that may arise due to the use or
consumption of your products causing
 Bodily Injury or Property damage
 Arising from
 Your products
 Completed Operations

12. Personal & Advertising Injury Coverage
 Personal and advertising injury means arising out of one or more of
following offenses:
 False arrest, detention or imprisonment;
 Malicious prosecution;
 The wrongful eviction or wrongful entry
 Defamation libel or Slander including Product Disparagement
 Oral or written publication that violates person's right of privacy;
 Use of another's advertising idea in your advertisement; or
 Infringing upon another's copyright, trade dress or slogan in
your advertisement

13. Product & Completed Operations
Coverage
 Products-completed operations hazard’ means:
 Products Completed Operations includes claims made on
account of bodily injury and property damage occurring away
from premises the Insured owns or rents and arising out of
the Insured's product or the Insured's work except:
 Products that are still in the Insured's physical
possession or
 Work that has not yet been completed or abandoned

14. Comprehensive coverage…
Act of God Perils
Covers Third Party Liability arising out
of Tsunami, Earthquake, Flood,
Lift Liability
Food & Beverage
Covers Third Party Liability arising out
of food and Beverage whilst in the
designated premises
Travel of Executives
Third Party BI/PD happening out of lift
or escalators
Covers Third Party BI/PD arising out
of the negligent acts of executives/
employees while on business trips on
behalf of the Company for non manual
work

15. Comprehensive coverage contd…
NOHAL
Third Party BI/PD arising out of Non
Owned or Hired Automobile in excess
of locally mandated statutory policies
Sudden & Accidental Pollution
Third Party BI/PD arising out of due to
pollution, where such pollution is
caused by a sudden, unintended and
unexpected happening

16. Claims Made vs Occurrence Based
 Claims Made wording mandates that;
 The event giving rise to the claim should have occurred during
the period of insurance and
 Claim should be made during policy period
 Period of insurance is determined as period between the date
of inception of the First Claims Made policy (continued without a
break) and expiry of the current policy
 Occurrence based wording
 Event giving rise to the claim must occur during policy period
and
 Typically the insurer would respond whenever the claim is
thereafter made on the Insurance Company

17. Target Sectors
Hospitality Food Products
Tour OperatorsFMCG
Auto
Components
Information
Technology
Engineering
Products
Chemicals
Entertainment
Corporates across
Industry Segments
Pharma
General
Manufacturing
Service
Segments

18.  Product Guarantee, Repair and Replacement cost and
Financial Losses
 Errors and Omissions
 Fraud and Dishonesty
 Product manufactured or domiciled in USA/Canada
 Product Inefficacy
Major Exclusions…

19.  Duly completed Proposal Form
 Expiring Policy Copy (if applicable)
 Brokers’ Slip
 Details of Loss Experience & Corrective measures
Documents Required…

20. Negative List
 Public/general liability exposure of following:
 Waste processing units and leather works
 Water bodies/hydraulic structures
 Schools, education institute etc
 Amusement parks and Fitness centers
 Roads/highways
 Facility Management services and Agencies who provide
Security guards
 Mines and Oil exploration sites
 Automobiles’ Workshops and Repair shops
 Organizers of events

21.  Product liability/ recall exposure of following:
 Products manufactured in USA/Canada
 Explosives, arms, ammunition, matchboxes & fire crackers
 Alcoholic beverages
 Tobacco based products
 Pipes used for oil wells
 Critical medical equipments and Latex products
 Contraceptives
 Blood banks
 Meat products
 Beauty / skin care products
 Weight loss products
 Steerings, brakes, wheels and tyres
Negative List

22.  Safety helmets
 Children/baby car seat and Seat belts
 Air bags and air bag control module
 Aviation related products
 Clinical Trials’ exposure of following:
 drugs/devices being tested on infants
 Psychotropic drugs
Negative List

23. • Quote
Currently this product is underwritten only by Corporate Team
Please upload the proposal form and financials on Samadhan
Ensure that the correct client zone is selected
TAT – 3 days
Underwriters for South Region
Nikhil Bhimani
1st Escalation to Ramneek Goyal
2nd Escalation to Bhavesh Patel
• Booking Process
All cases to be inwarded on Omniflow – CPI
Proposal form and any other subjectivities in quote must be uploaded
Each and every question on proposal form must be answered
Proposal form must be signed, stamped and dated
If a section does not apply to the cleint – please get “Not Applicable”
mentioned (N/A will not do)
• In case of a claim
Inform underwriter and claims manager
Send Claim form to Customer
We take it forward from there
Process

24. • Mandatory
Duly completed Proposal Form
Stamped and signed proposal form is required for booking only
Latest Audited Financial Report except in following cases
In case of listed companies, we will take it from the net
In case of a company which has not completed one year
• Optional (If available)
Expiring Policy Copy
Brokers’ Slip
• In case expiring policy has a claim
Details of Loss Incident
Quantum of Loss
Current Status
Corrective measures taken to avoid similar claim
Documentation Required

25. Important Information
Public Liability
• Estimated Turnover
• Wage Roll
• Contract Period (in case of construction projects
• Type of premises
• Manufacturing /office/warehouses/godowns
• Cover for Travel of executives outside India
• No of employees
• Travel destinations
• Locations outside India

26. Product Liability
• Nature and functionality of products
• Number of products
• Sectors in which products are
• Exports ( Regions – OECD Countries,Non OECD
Countries,USA/Canada and Domestic consumption)
• Quality control
• Intermediate/End Product
Important Information

27. Thank You