Country’s largest private sector general insurer, ICICI Lombard General may have to shell out over Rs 150 crores under liability arising out of possible lawsuits in the Maggi controversy.
The consumer affairs ministry is likely to file a case against Nestle seeking compensation for damages caused from selling an unsafe product. The claim would come under commercial general liability (CGL) policy.
Commercial General Liability policy covers third party liabilities arising out of various business operations.
So far, this is the first such case in the country where commercial general liability cover will be evoked.
Nestle has bought CGL cover but has not taken the product liability cover, which would have taken care of loss arising out of recalling the products. The policy ensures against damage arising out of the use or consumption of manufactured by the insured.
Though this cover is at very nascent stage in India and generally bought by pharmaceutical and consumer companies, but in the way consumer activism and regulatory authorities are becoming stringent, more and more sectors will now go for such insurance covers.
vinay mohanty
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