1. Introduction

The Public Liability Insurance Policy is designed to protect the insured in respect of his legal liability to pay compensation for accidental bodily injury to or accidental damage the property of the other person caused by or through the negligence of the insured or his employees or by any defect in the premises owned or any defects in the ways, works of the insured. In addition, the Policy also pays for the litigation costs and expenses for defense that are incurred with the written consent of the Company.

All firms and business enterprises have a need for this cover and it is important that the proposer selects an adequate limit to protect their interest. The sum insured or limit of indemnity should represent the maximum liability which the Insured estimates that this business could possibly incur. The sum insured can be arranged on :

a) limit anyone accident and

b) limit anyone period.

2. Scope of cover

The company shall indemnify the Insured against all sums which the Insured shall become liable at law for damages and claimant's costs and expenses in respect of:

a) accidental bodily injury to any person not being a member of the Insured's household or any person in the service of the Insured.

b) accidental damage to property not belonging to or in the custody or control of the Insured.

c) any legal expenses incurred by the Insured in defending legal proceedings with the Company's written consent.

3. Extensions available (on payment of additional premium)

a) Fire and explosion

b) Defective sanitary arrangements.

c) Loading and unloading

d) Food and Drinks poisoning for food and drink served/ sold within the confine of Insured's premises (usually with a   lower limit for any one accident or in the aggregate during the period of insurance).

e) Vibration or removal or weakening of support.

f) Passengers/Service lifts and Escalators.

g) Innkeeper's liability cover for hotels.

h) Plant and machinery used within the confine of the Insured's premises.

i) Vehicle not licensed for public road use.

j) Car park liability clause.

k) Cross liability clause.

I) Indemnity to directors/executives

m) Neon-sign and signboard liability endorsement

n) Social activities clause

o) Sudden and accidental pollution endorsement

p) Tenant's liability endorsement

q) Independent contractor clause

4. Rating

The premium to be charged for a public liability policy is dependent upon several factors, which include:

a) the limit of liability/ surn insured.

b) the occupation and maintenance of the premises.

c) the type of risk/exposure to third-party, either person or property.

d) the likelihood of an accident happening in the premises which can give rise to a third-party claim.

There is no standard methods of rating for a public liability risk since no two public liability risks are the same.

Anyone of the following methods of rating may be employed depending on the type of risk involved.

a) Per capita

used for relatively small risks, for example, small shops where a rate per capita based on the number of employees can be used in arriving at a premium.

b) Fixed premium

appropriate for risks where there is no large element of work away from the premises. Basically. used for premises such as manufacturer's premises.

c) On wages

used frequently for risk with large element of work away from premises, such as builders or contractors, civil engineering finns and the like.

d) On capacity

used frequently for cinemas, theaters based on seating capacity; for hotels and boarding houses based on the number of bedrooms; or at sporting functions on attendance or ground capacity.

e) On acreage

basically used for farmers or estate owners' risks.

f) On turnover

this is commonly used for rating products liability risk. However, it can be used for large risks where we are no so much concern with a rate for the risk but with a premium for the risk. A suitably adjusted rate applied to the turnover will provide the correct level of premium and the turnover method will be hedge against inflation.

g) Nominal premiums

these are charged for small risks such as personal liability policies.

As a general guide the following minimum rates based on a 12 months cover and a limit of indemnity of RM100,000 anyone accident is to be charged.

4. Rating - P. Liability ‎(MPIB)‎

 Open 4. Rating - P. Liability ‎(MPIB)‎

Excess To Be Applied

a) Third Party Property Damage RM2,500

b) Underground Cables, Pipes and Services -10% of loss subject to minimum of RM10,000

c) Vibration and Removals/Weakening of Support -10% of  loss subject to a minimum of RM10,000

5. Increased Indemnity

Limit of indemnity                                    Discount off the basic rate

RM 150,000

10% 

RM 200,000

12.5%

RM 250,000

15%

RM 500,000

25%

RM 750,000

30%

RM 1,000,000 

37.5% 

RM 1,500,000 

42.5%

RM 2,000,000 

50% 

Above RM 2,000,000 

Refer

6. Referred Risks (Acceptance of such risk is to be referred to Business Development or Branch Head)

a) Amusement parks 

b) Security organization 

c) Ship building, ship repairing and ship breaking yards, 

    including construction repair or installation work on vessels

7. Special Acceptance Risks (Acceptance of such risk is to be referred to Portfolio Underwriters/Head of Underwriting and Technical Support)

a) Blasting operations quarries

b) Dry docks, docks, quarries and wharves

c) Mines and related underground activities

d) Railways, tramways and cable cars, chair lifts

e) Sea ports

f) Stadium with more than 20,000 spectators

g) Underwater activities

8. Declined Risks (Any accommodation of such risk is to be referred Head of Underwriting and Technical Support/Risk Review Committee)

a) Aerodromes and airport 

b) Aircraft and air cushioned vehicles including construction 

    repair or installation work on aircraft 

c) Any liability arising out of mining processing manufacturing 

    distributing use and/or storage of pure asbestos and/or

    products made entirely or mainly of asbestos. 

d) Automobile other than under motor contingency covers in 

    respect of non owned Vehicles 

e) Contractors engaged exclusively in wrecking and 

    demolition 

f) construction and maintenance of dams and subaqueous 

    Dams 

g) Decennial Liability h) Defective Design 

i) Gradual Pollution 

j) Inland coastal and ocean going marine risks 

k) Manufacturers, storage, filling, breaking down, transport of 

    fireworks, ammunition, fuses, cartridges, power, nitro 

    glycerine or any explosive or gases and/or air under 

    pressure in containers. 

l) Medical Malpractice 

m) Oil wells, oil refinery work, oil tanks inclusive of drilling, 

    producing, refining and/or distributing (other than general  

    distributors)

n) Public Authorities (including fire brigades, police and law 

    enforcement), municipalities and water boards

o) Tunneling

p) Vessels including their navigation

q) Waste disposals and deposits

Liberty Insurance-Public Liability

Providing cover against legal liabilities for loss or damage caused to third parties and their property, Public Liability is an insurance plan that ensures that you and your business are always protected. Covering legal fees and litigation expenses, this policy indemnifies you from the additional worry of damages or bodily injury caused to the public, due to defects within your premises.

Menyediakan perlindungan terhadap liabiliti undang-undang untuk kerugian atau kerosakan yang disebabkan oleh pihak ketiga dan harta mereka, Liabiliti Awam ialah pelan insurans yang memastikan anda dan perniagaan anda sentiasa dilindungi. Meliputi yuran guaman dan perbelanjaan litigasi, polisi ini melindungi anda daripada kebimbangan tambahan tentang kerosakan atau kecederaan badan yang disebabkan oleh orang ramai, akibat kecacatan dalam premis anda.

Public Liability 为第三方及其财产造成的损失或损害提供法律责任保障，是一项确保您和您的企业始终受到保护的保险计划。 本保单涵盖法律费用和诉讼费用，使您免于因您的场所存在缺陷而对公众造成的额外损害或人身伤害。 . 

Downloads

Proposal Form     English | Bahasa Malaysia

Policy Wording     English | Bahasa Malaysia

Product Disclusure Sheet     English | Bahasa Malaysia

Non-Consumer Insurance Contract Pursuant to Paragraph 4(1) of Schedule 9 of the Financial Services Act 2013, if you are applying for this Insurance for a purpose related to your trade, business or profession, you have a duty to disclose any matter that you know to be relevant to our decision in accepting the risks and determining the rates and terms to be applied and any matter a reasonable person in the circumstances could be expected to know to be relevant, otherwise it may result in avoidance of your contract of insurance, refusal or reduction of your claim(s), change of terms or termination of your contract of insurance. The above duty of disclosure shall continue until the time your contract of insurance is entered into, varied or renewed with us. You also have a duty to tell us immediately if at any time after your contract of insurance has been entered into, varied or renewed with us any of the information given in the Proposal Form (or when you applied for this insurance) is inaccurate or has changed. 

1. What is this product about? 

Public Liability Insurance is designed to protect the insured in respect of his legal liability to pay compensation for accidental bodily injury to or accidental damage to the property of members of the public caused by or through the negligence of the insured or his employees or by defects in the premises and includes legal charges and expenses. 

2. What are the covers /benefits provided? 

The company shall indemnify the Insured against all sums which the Insured shall become liable at law for damages and claimant’s costs and expenses in respect of:- 

a) Accidental bodily injury to any person not being a member of the Insured’s household or any person in the service of the Insured. 

b) Accidental damage to property not belonging to or in the custody or control of the Insured. 

c) Any legal expenses incurred by the Insured in defending legal proceedings with the Company’s written consent. The Duration for cover is One year. You will need to renew the insurance plan annually. 

3. How much premium do I have to pay? 

The minimum annual premium is RM 79.50 per policy. This is the minimum premium; the actual premium depends on the limit of liability and also risk exposure. 

4. What are the fees and charges that I have to pay? 

The fees and charges that you will have to pay are: Type Amount Commission paid to the insurance agent 25% Stamp duty RM10.00 Service Tax 6% 

5. What are some of the key terms and conditions that I should be aware of? Some of the key terms and conditions that you should be aware of are: 

a) Every notice or communication must be given to us in writing. 

) The Insured must take reasonable precautions to prevent accidents and must comply with all statutory obligations. 

c) If the premium is calculated based on estimates, you must furnish us with all relevant documents within one month from expiry date in order for us to adjust the premium accordingly. 

d) If there is any other insurance covering the same liability, we are not liable to pay more than the rateable proportion. 

6. What are the major exclusions under this policy? 

This insurance does not apply: 

a) Bodily injury or property damage arising out of deliberate, willful or intentional non-compliance with any statutory provisions. 

b) Bodily injury or property damage arising out of the transportation of materials and / or hazardous dangerous noxious substance outside the Insured’s premises. 

c) Any liability arising directly or indirectly as a consequence of the wilful or professional negligence of the Insured. 

d) Any liability arising out of all personal injuries such as libel, slander, defamation etc. 

e) Any liability arising out of infringement of plans, copyright, patent, trade mark, registered design. (Note: This list is non-exhaustive. Please refer to the policy for the full list of exclusions under this policy.)

7. Can I cancel my policy and how do I cancel it? 

You may cancel your policy at any time by giving written notice to our company. Upon cancellation, you are entitled to a refund of the premium based on the short-period rate, where any minimum premium paid under the policy is not refundable. 

8. What do I need to do if there are changes to my contact details? 

It is important that you inform us of any changes to your contact details. This is to ensure that all the correspondence will reach you in a timely manner. 

9. Where can I get further information? 

Should you require additional information, please visit our website at www.libertyinsurance.com.my or contact any of our branches nationwide, or If you have any inquiries, please contact us at: 

www.libertyinsurance.com.my/business-insurance/public-liability 

Liberty Insurance Berhad 10th Floor, Menara Liberty, 1008, Jalan Sultan Ismail, 50250 Kuala Lumpur. 

Toll Free : 1-300-888-990 Tel : 03-2619 9000 Fax : 03-2693 0111 www.libertyinsurance.com.my 

10. Other types of Liability Insurance cover available: 

Other types of Liability Insurance available are:  

Product Liability Insurance  

Employer’s Liability Insurance 

IMPORTANT NOTE: YOU SHOULD READ AND UNDERSTAND THE INSURANCE POLICY AND DISCUSS IT WITH THE AGENT OR CONTACT THE INSURANCE COMPANY DIRECTLY FOR MORE INFORMATION. 

The information provided in this disclosure sheet is valid as at September, 2018