Insurance WAEC

Public Liability Insurance

Muhtasari

Open a shop, run a school, build a block of flats or simply keep a dog at home, and you create a risk that has nothing to do with your own property: the risk that you injure someone else, or damage what belongs to them, and are made to pay for it in court. Public liability insurance is the cover that stands behind that risk. It does not pay for your own losses. It pays the person you have wronged, on your behalf, and it pays the lawyers who defend you.

In this lesson you will learn exactly what public liability insurance covers and who counts as a third party, how the same idea works in your private life as personal liability, how product liability follows the goods you sell long after they leave your counter, and the boundary that examiners test every year: why an injured customer is a public liability claim while an injured member of your staff is not.

Malengo

  1. Define public liability insurance and explain the exposure it covers
  2. Explain personal liability and identify who may be held liable
  3. Explain product liability and describe the losses it indemnifies
  4. Distinguish public liability from employer's liability insurance

Maelezo ya Somo

A customer walks into a busy supermarket in Lagos on a rainy morning. The floor near the entrance has been mopped but left unmarked and wet. She slips, falls, and fractures her wrist. She was not an employee and she had signed no contract with the shop, yet the accident happened on the owner's premises and through the owner's carelessness. She sues. The bill that follows is not for any property the shop owner has lost. It is money the owner now legally owes to a stranger, plus the cost of the lawyers. That exposure, the cost of harming other people, is what public liability insurance was built to carry.

Tathmini ya Somo

Hongera kwa kukamilisha somo la Public Liability Insurance. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.

Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.

Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.

  1. Public liability insurance covers the insured's legal liability to: A. The insured's own employees B. Third parties who are members of the public C. The insurer D. The insured's shareholders Answer: B
  2. An injury caused by a defective product after it has been sold is covered by: A. Public liability insurance B. Employer's liability insurance C. Product liability insurance D. Fidelity guarantee insurance Answer: C
  3. Employer's liability insurance differs from public liability insurance mainly because it covers injury to: A. Members of the public B. Customers C. The insured's employees D. Passers by Answer: C
  4. Personal liability insurance responds when a person incurs legal liability in a: A. Trading capacity B. Private or domestic capacity C. Professional capacity D. Contractual capacity as an employer Answer: B
  5. A public liability policy has a limit of indemnity of 8,000,000 naira with legal costs payable in addition. Damages of 3,000,000 naira are awarded and defence costs are 600,000 naira. How much does the insurer pay? A. 3,000,000 naira B. 3,600,000 naira C. 8,000,000 naira D. 8,600,000 naira Answer: B

Vitabu Vinavyopendekezwa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Manukuu: Thirteenth edition
Mchapishaji: Pearson
Mwaka: 2016
ISBN: 978-0-13-408257-8
Maelezo: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Manukuu: Tenth edition
Mchapishaji: Wiley
Mwaka: 2008
ISBN: 978-0-470-08753-4
Maelezo: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Manukuu: Second edition
Mchapishaji: Himalaya Publishing House
Mwaka: 2017
ISBN: 978-93-5097-079-9
Maelezo: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Maswali ya Zamani

Unajiuliza maswali ya zamani kuhusu mada hii yanaonekanaje? Hapa kuna idadi ya maswali kuhusu Public Liability Insurance kutoka miaka iliyopita.

WAEC SSCE - Insurance - 2018

Swali 1 Ripoti

(a) List six experts that would require professional indemnity insurance in their operations.

(b) Explain the cover provided by each of the following insurance 'policies:
(i) personal liability
(ii) public liability
(ii) professional indemnity 
 

Tazama Jibu