Contractual Liability (Insurance) Template for India

This Contractual Liability Insurance document is essential for businesses operating in India that seek protection against risks arising from their contractual obligations and agreements. The document, governed by Indian insurance laws and regulations, provides a comprehensive framework for managing contractual risk exposure. It is particularly valuable when businesses enter into significant contracts where breach or non-performance could result in substantial financial losses. The insurance coverage typically includes defense costs, settlements, and judgments related to covered contractual claims. This document type aligns with the Insurance Act, 1938, IRDAI guidelines, and other relevant Indian legislation, offering businesses a structured approach to transferring contractual risks to insurers while maintaining compliance with local regulatory requirements.

1. Parties: Identification of the insurer and the insured party, including full legal names and addresses

2. Background: Context of the insurance arrangement and brief description of the insured's business activities

3. Definitions: Detailed definitions of key terms used throughout the policy, including technical and legal terminology

4. Scope of Coverage: Detailed description of what contractual liabilities are covered under the policy

5. Policy Period: Duration of the insurance coverage, including start and end dates

6. Limits of Liability: Maximum amounts payable under the policy, including any sub-limits

7. Premium and Payment Terms: Details of premium amount, payment schedule, and consequences of non-payment

8. General Exclusions: Specific circumstances and types of losses that are not covered under the policy

9. Claims Procedure: Step-by-step process for filing and handling claims

10. General Conditions: Standard policy conditions including cancellation, renewal, and modification terms

11. Duties and Obligations: Specific responsibilities of both the insurer and the insured

12. Dispute Resolution: Procedures for handling disputes, including jurisdiction and applicable law