PROSPECTS OF LIABILITY INSURANCE
Indian mindset pertaining to happening, i.e., what is allotted cannot be blotted has hindered liability insurance in India. ‘Liability and accidents are sure to happen and cannot be obviated, have been the main drawback of insurance. Liability insurance has taken a goods tart with the education and realization of one’s responsibility and duties. It keeps pace with global-business where ventures have crossed the domestic boundaries. It contemplates exporting of products and services to tough and unknown jurisdiction.
Liability insurance has become only source of financial recourse in the even of litigation compared with the normal source or business, if unfortunate entrepreneur is faced with litigation funds no help for expensing legal fees and compensation duty to defend claims handling also makes a compulsive case for buying liability insurance. Liability insurance makes it possible for the insure to outsource adverse litigation management. It provides definite value addition through the intervention in risk management and insurance buying. The coverage depends on interpretation and negotiation skill of product knowledge .specialized brokers is required for liability programs and insurance buyers.
The liability insurance claim is very low in India .it makes insurers to decide premium rate. Many of the anti-premiers and professional are encouraged to seek liability insurance. Liability insurance permits the insurer to heave a higher risk so that a large number of persons are willing to take this insurance. It keeps overall claim rations within controlled limits. The insurers should keep adequate reserves to meet an unexpectedly large claim if ever it arises.
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