PDI - Liability Insurance

Learning Outcomes

On completion of the module, students are expected to be able to:

• outline and assess the principal factors involved in the assessment of liability risks according to different business activities;
• define and analyze the scope and the start-to-end practice of principal liability insurance contracts according to the nature of business and the need of the company; and
• interpret and perform tasks on insurance matters independently including quotation, portfolio performance of underwriting, suggestion of negotiation strategies, reviewing performance of claims of principal liability insurance contracts according to requirements of both the insured and the insurer under different factors of consideration.

Learning Contents

1. Employers’ liability including Employees’ Compensation Insurance and compulsory insurance requirements

• Third Parties (Rights Against Insurers) (Cap 273) Ordinance
• Employees Compensation Assistance (Amendment) Ordinance 2002
• Employees’ Compensation Ordinance Cap 282
• Employees’ Compensation Insurance including underwriting, rating, surveys and claims

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2. Public liability

• Legal Liability, Tort, Negligence, Occupiers’ Liability, Nuisance, Trespass, Strict Liability, Vicarious Liability, The Building Management (Third Party Risk Insurance) Regulation i.e. Building Management Ordinance (Cap 344), Liability under Statute or contract and Defamation

3. Other Legal Liability insurance

• Product liability insurance, professional indemnity insurance, directors’ and officers’ liability insurance and other specialized insurance

4. Policy cover

• Policy wordings, definitions, special specifications and features terms and conditions, exclusions and exceptions, extensions, clauses and common endorsements such as Cross Liability Clause, Occurrence and Claim Made Basis.

5. Risk assessment and underwriting

• Questions within the proposal form; premium bases; wages adjustment schedule; rating of risks; classification of risks; and underwriting of individual risks, Common indemnity and insurance clauses including the provisions of clauses in the Standard Form of Building Contract issued by the Joint Contracts Tribunal