Product Liability Insurance Research Articles

Assessing the E-Commerce Consumer Protection Mechanisms for Fostering Digital Economic Advancement in India through the WPM Method

The rapid proliferation of e-commerce has revolutionized consumer transactions and economic growth in India. This paper delves into the pivotal role of legal consumer protection systems in fostering digital economic growth within the Indian e-commerce landscape, utilizing the Web Performance Monitoring (WPM) method as a foundational framework. The surge in online transactions has necessitated robust mechanisms to safeguard consumers' rights and in still trust in digital marketplaces. The study begins by elucidating the multifaceted challenges faced by Indian consumers in e-commerce transactions, ranging from deceptive advertising practices and counterfeit products to privacy breaches and unfair contract terms. Subsequently, it highlights the indispensable role of effective legal frameworks in addressing these challenges and facilitating seamless digital economic growth. The Web Performance Monitoring (WPM) method is introduced as an innovative approach to assess and enhance the efficacy of consumer protection systems in the digital realm. By analysing real-time data on website performance, transaction security, and dispute resolution mechanisms, the WPM method enables policymakers and stakeholders to identify gaps, optimize processes, and ensure a favourable environment for both consumers and businesses. Drawing on empirical research and case studies, this paper demonstrates the tangible impact of robust consumer protection measures on boosting consumer confidence, encouraging cross-border transactions, and nurturing a conducive ecosystem for digital economic expansion. Furthermore, it emphasizes the need for continuous adaptation and evolution of legal frameworks to keep pace with the dynamic nature of e-commerce. this study underscores the imperative of establishing and fortifying Enhancing consumer protection mechanisms within the realm of e-commerce has the potential to drive digital economic advancement in India. The integration of the Web Performance Monitoring method offers a strategic pathway to continually enhance consumer safeguards, foster trust, and drive sustainable progress in the evolving landscape of online commerce. The alternatives are Self-Regulation by E-Commerce Platforms (A1), Consumer Ombudsman System (A2), Statutory Warranty Requirements (A3), Online Dispute Resolution (ODR) Mechanism (A4), Mandatory Product Liability Insurance (A5), Transparent Return and Refund Policies (A6), Cross-Border Consumer Protection Cooperation (A7) and Digital Signature Authentication (A8). The evaluation parameters are Effectiveness of Dispute Resolution (C1), Consumer Trust and Confidence (C2), Reduction in Fraudulent Transactions (C3), Implementation Cost (C4), Legal Complexity (C5), and Adaptability to Emerging Technologies (C6). The Legal Consumer Protection Systemsresult of Digital Signature Authentication is got first rank and Cross-Border Consumer Protection Cooperation is got lowest rank.

Comparative studies of available relief for defective aircraft and grounding losses under the legal regimes in China and the U.S.: product tort liability or contractual warranty liability?

ABSTRACT Two crashes of Boeing 737 MAX aircraft in 2019 resulted in the total grounding of all 737 MAX aircraft worldwide. The issue of grounding losses and available relief has attracted widespread attention. From a legal perspective, such losses, which include aircraft devaluation, operating losses, and added costs, constitute pure economic loss. Both Chinese and U.S. law provide for remedies for defects in a sales contract’s subject matter. Under U.S. law, pure economic losses are claimable only by way of a contractual claim. In China, however, current tort law allows for relief for losses other than those arising from aircraft devaluation/losses. Under the Chinese Civil Code, any exemptions stipulated in an aircraft sales contract on grounding losses arising from an aircraft manufacturer’s intentional or grossly negligent acts are invalid. Given the differing regimes in China and the U.S., aviation product liability insurance is an alternative relief channel for grounding losses, for which airlines, under certain circumstances, can directly file a claim with insurance companies. Consequently, characterization of grounding losses as a product tort liability or a contractual warranty liability shall impact on the determination of court jurisdiction, disputing parties and applicable law in the litigation process.

A critical study of product liability and analysis with special reference to India

Consumers have legal redress for any harm brought on by a faulty product under product liability law. According to estimates, faulty items have a detrimental impact on millions of individuals throughout the world, and the sellers or producers wind up shelling out a sizable sum for products-liability insurance as well as damages. A product must satisfy a consumer's reasonable expectations, thus it is the duty of the producers and the buyers to guarantee the product's safety and quality in accordance with its description. A modest way of life and locally produced goods meant that anybody who experienced harm from a faulty product could deal with the maker directly without the need for legal action or government regulation. However, owing to the growth in problems emerging from faulty goods, changes in the instruments of production and consumption, such as the industrial revolution and technical advancements, among others, have led to the establishment of products-liability law. To safeguard the rights of its customers and the general public at large, India is recognising and realising the need of developing and implementing a strong product liability framework. In specifically, the article addresses the importance of product liability and professional indemnity insurance plans in India as well as some significant developments and their impact on liability insurance. The Act's whole chapter devoted to product liability provides insight into the anticipated effect on liability insurance.

Aeronautical product liability insurance and recent development

Aeronautical product liability insurance and recent development

Winner’s Curse in Insurance and Underwriting Cycles

In this paper, we develop a simple economic model to explain how an entrant insurer may suffer the winner’s curse in the sense that the entrant insurer’s risk pool is less profitable than that of an incumbent insurer. In addition, we exploit the strategic interactions and the pricing dynamics between entrant and incumbent insurers to describe the formation of an insurance underwriting cycle. Empirical tests based on the predictions of our economic models are conducted in the homeowners and product liability insurance markets for the period 1995-2001. We find that (1) the winner’s curse is present in the product liability insurance market, but not in the homeowners insurance market; and that (2) larger insurers tend to be more profitable in underwriting than their smaller competitors.

Linking small fruit and vegetable farmers and institutional foodservice operations: marketing challenges and considerations

AbstractThe centralized nature of the United States food production, processing and distribution system makes it difficult for small fruit and vegetable farmers to serve as suppliers to institutional foodservice operations (IFOs), such as schools and hospitals. Due to age, economic and/or health status, it is often the clients of these foodservice operations who would benefit from increasing their consumption of locally grown fruits and vegetables. Unfortunately, institutions are often limited in their resources and food preparation infrastructure, and lack market-based incentives to incorporate locally grown foods into their menus. This study identifies and suggests solutions to barriers that limit the ability of small fruit and vegetable farmers to serve as suppliers to IFOs. Data were collected through an extensive series of focus group meetings held with small-scale fruit and vegetable farmers in three South-Atlantic states. From these meetings, practical marketing considerations, such as payment terms, and processing, packaging and delivery requirements of supplying institutional foodservice buyers, were identified as obstacles to the efficient function of this market channel. Food safety challenges, including the related issues of obtaining (food) products liability insurance and food safety certifications, were also acknowledged among top concerns. A majority of the identified challenges were similar to those reported in other studies, but several were complicated by characteristics of farm production, limited food system infrastructure and marketing experiences in the study region. Several practical solutions to overcoming some of these marketing constraints are offered.

Comparative Study on Consumer Protection in Indonesia through Mechanism of Product Liability Insurance

Abstract: This research discusses and analyzes consumer protection in indonesia through product liability insurance mechanism. Insurance institution becomes important to transfer producer’s liability risk for the products he produced for consumer’s consumption or use, if consumers suffer accident and or loss because of consuming or using such product. In Indonesia, the intention to materialize legal effort of Consumer Protection has existed since 1998 with enactment of Law Number 8 of 1999 on Consumer Protection. To face business law development especially in insurance area which its impact on legal protection for consumers of product in general, at present it is necessary to have a reform and or regulation which certainly will be able to anticipate the development of business, in creating and implementing contracts in insurance business practices. The research method used in this research is normative-qualitative with comparative approach. The outcome of the research shows that product liability insurance has an important role in protecting consumers’ interest in the current Indonesian society. This product liability insurance provides guarantee for consumers to receive compensation if the products being used cause injuries/loss, even such compensation is not only for the consumer who uses the product but also for bystanders when the product is being used. In mechanism of product liability insurance, producers have to pay premium for products insured which its value shall depend on quantity and type of product, risk level for products insured. Keywords: Consumer Protection Law, Product Liability Insurance

生産物賠償責任保険約款の課題

日本の賠償責任保険は米国の約款・料率を範として1957年に導入されたが，当時の日本にとっては全くの新商品であったことから，営業経験を積みまた各方面からの批判を得て改良していくべきことが意識されていた。本家の米国ISO約款は，1966年，1973年，1986年に大幅な改訂がなされたが，日本の賠償責任保険の補償内容に大きな改訂がなされたのは，保険法対応のための約款改訂の一度のみである。本稿では，賠償責任保険のうち生産物賠償責任保険を取り上げ，その約款につき，商品発売以降，どのような改善指摘があり，いかに実務対応されたのかを整理したうえで，米国のISO約款と比較することによって現在の生産物賠償責任保険になお残る課題を明らかにする。結論として，(1)財物の使用不能損害についての補償拡大，(2)法令違反免責の削除とビジネスリスク免責の見直し，(3)賠償請求ベースで引き受けられる契約におけるロングテールカバーの必要性を指摘する。

ASURANSI TANGGUNG JAWAB PRODUK DAN PERLINDUNGAN TERHADAP KONSUMEN

Product liability insurance is an important issue if it is associated with the protection of consumers. This is a form of producer’s responsibility in providing their protection to consumers who suffered losses as a result of using defective products. In this study, the problem is how the product liability insurance takes an important role in protecting the interests of consumers who suffered losses as a result of using a defective product, relating to the protection of consumers as the users of the product. This is a normative study employing the approach of legislation and conceptual. The results showed that the role of the insurance company as an insurer is taking over the responsibility of the manufacturer to the risk of losses due to product defects in the claims done by the consumers who suffered losses due to the defective product. Thus, the coverage of the product liability insurance is basically to protect and guarantee the right of consumers to the demands of compensation to producers.

Faced with a Recall – How good is your Insurance?

Any business having experienced a product recall knows how costly this can be. Sometimes the main costs of the recall are concentrated around counteracting bad publicity, but if several or large numbers of batches are affected by the recall, the costs of the recall itself can mount up considerably.In many large companies the overall responsibility for quality assurance and product safety is placed in a different part of the organization from the one responsible for product liability insurance and recall insurance.As a consequence inside the organization there is not always a common understanding of what the insurance should cover and what the insurance actually does cover – or of whether and when the insurance company should become involved in the process.

State Auto Financial Corp.

AbstractInsurance (MIC: SIC: 6331 NAIC: 524126)State Auto Financial is a property and casualty insurance holding company primarily engaged in writing both personal and business lines of insurance. Co. has three reportable segments: the personal insurance segment, which provides primarily personal auto (standard and nonstandard) and homeowners to the personal insurance market; the business insurance segment, which provides primarily commercial auto, commercial multi‐peril, fire and allied lines, other and product liability and workers' compensation insurance to small to medium sized businesses within the commercial insurance market; and the investment operations segment, which provides investment services for Co.'s invested assets.

State Auto Financial Corp.

AbstractInsurance (MIC: SIC: 6331 NAIC: 524126)State Auto Financial is a property and casualty insurance holding company primarily engaged in writing both personal and business lines of insurance. Co. has three reportable segments: the personal insurance segment, which provides primarily personal auto (standard and nonstandard) and homeowners to the personal insurance market; the business insurance segment, which provides primarily commercial auto, commercial multi‐peril, fire and allied lines, other and product liability and workers' compensation insurance to small to medium sized businesses within the commercial insurance market; and the investment operations segment, which provides investment services for Co.'s invested assets.

Estimating the costs of non-fatal consumer product injuries in the United States

This paper describes a data-driven injury cost model (ICM) developed to estimate the costs associated with non-fatal consumer product injuries. The modeling effort combines information by diagnosis from the US Consumer Product Safety Commission’s National Electronic Injury Surveillance System (NEISS) and 17 other large data sets. The ICM contains four aggregated cost components: (1) medical costs, (2) work losses, (3) quality of life and pain and suffering costs, and (4) product liability insurance administration and litigation costs. The ICM estimates societal costs, which are broader than costs to any individual group, such as victims, insurers, or product manufacturers. Costs associated with consumer product injuries are estimated to be approximately $500 billion in 1996, accounting for nearly one-third of the total annual injury costs. We examine injury costs in several ways, including by major product category, by sex and age of victims, by body part injured, by injury diagnosis, and by highest level of medical treatment received. We also rank the 10 leading consumer products that account for injury costs overall and within different age groups. Products such as stairs and floors are among the top 10 for all age groups. Other products, however, are more closely tied to injuries at particular stages of life (e.g., infant/toddler, child, young adult, elderly). These cost estimates are useful in assessing which products and types of injuries impose the greatest costs on society and for identifying areas for focused injury prevention efforts.

Vaccine Safety: Injecting a Dose of Common Sense

Vaccine Safety: Injecting a Dose of Common Sense

Food safety and product liability

This paper focuses on the U.S. product liability system for food poisoning cases and makes six key points. First, current legal incentives to produce safer food are weak, though slightly stronger in outbreak situations and in markets where foodborne illness can be more easily traced to individual firms. Far less than 0.01% of cases are litigated and even fewer are paid compensation. Second, even if potential plaintiffs can overcome the high information and transaction costs necessary to file lawsuits, monetary compensation provides only weak incentives to pursue litigation. Firms paid compensation in 56% of the 294 cases examined in this study and the median compensation was only $2,000 before legal fees. Third, indirect incentives for firms may be important and deserve more research. For example, firms may be influenced by costly settlements and decisions against other firms in the same industry. Fourth, confidential settlements, health insurance, and product liability insurance distort legal incentives to produce safer food. Fifth, the ambiguity about whether microbial contamination is “natural” or an “adulterant” hinders the legal system from effectively dealing with food safety issues. Sixth, a brief comparison of the incentives from U.S. and English legal systems suggests that more research is needed to understand the strengths, weaknesses, and relative impact of each country's legal system on the incentives to produce safer food.

5th International conference (SPT-5) structural failure, product liability and technical insurance : 10–14 July 1995, Vienna, Austria

5th International conference (SPT-5) structural failure, product liability and technical insurance : 10–14 July 1995, Vienna, Austria

SPT 4 4th International Conference on Structural Failure, Product Liability and Technical Insurance

Textile fibers are frequently encountered as trace evidence. The identification and comparison of fibers is very important for case investigation, and an important aspect of forensic fiber examination is the characterization of fiber dyes. Fibers recovered at crime scenes are often very small and contain multiple dyes, which require a high demand for the sensitivity and separation efficiency of dye analysis methods. The combination of high performance liquid chromatography and tandem mass spectrometry (HPLC-MS/MS) is a highly selective and sensitive analytical method that can be useful for the characterization of dyes. A sensitive HPLC-MS/MS method is described here to analyze fiber dyes in different classes (acid, basic, direct, reactive, and disperse). Acetonitrile/water addicted with 0.1% acetic acid was utilized as the mobile phase. Under the optimized conditions, the limit of detection (LOD) for different dyes reached 0.01–16.7 ng/mL in Multi Reaction Monitor (MRM) mode. The described method is sensitive enough to analyze single fibers with a length of a few millimeters or less, which makes it suitable for forensic analysis.

The product-liability-insurance issue in university licensing agreements

As universities become more involved with industry through research and license agreements, and with the change of character of product liability, particularly its becoming a potentially catastrophic event, universities are taking a hard look at product-liability insurance. A brief survey shows universities in three distinct groups in their handling of the issue in their licensing agreements. State schools feel protected and do not generally consider it essential, foundations are more cautious, and private universities are very concerned and require it except in specific cases. Some approaches to the problem are proposed.

Contraceptive choices — turning back the clock

Contraceptive choices are being reduced rather than being expanded in many parts of the world, particularly in Western countries. Although this paper presents an Australian perspective, the concerns are shared by family planners in other countries. The reasons for this are multiple and complex and often interrelated but ultimately depend on commercial considerations. The community expectation is that an ideal contraceptive can and does exist, but the media sensationalization of contraceptive problems has given many contraceptive methods a poor image. Contraceptive availability is also affected by liability issues, which have increased the cost of product liability insurance, and medical liability insurance of health professionals, increasing both the cost of contraceptives to the individual and the availability of services such as IUD insertions and sterilization, as practitioners withdraw their services, due to cost of insurance. The cost of marketing a new contraceptive from the time the idea is first developed until it is approved for marketing also deters manufacturers from developing new contraceptives. Delays in drug evaluation procedures in many countries deters companies with already well established contraceptives from marketing them in such countries. The effect of political stands by radical feminists or consumer groups, also effect both the image and the availability of contraceptives, as can be seen with the saga of Depo-Provera, RU486 and intrauterine devices. Similarly, the moral perceptions of anti-abortion groups and health care providers is also a threat to fertility control services. Possible solutions to some of these problems are offered in the paper.

An Empirical Analysis of the Effects of Product Liability Laws on Underwriting Risk

An Empirical Analysis of the Effects of Product Liability Laws on Underwriting Risk Abstract This article investigates the relationship between the civil justice system and the performance of the commercial liability insurance industry. It uses loss ratio data to examine whether a state's tort doctrines affect the relative prices of liability insurance and underwriting risk in that state. The empirical results suggest that tort doctrines can have an adverse effect on systematic underwriting risk and mean loss ratios. Problems concerning the affordability and availability of commercial liability insurance continue to be of considerable concern. On the one hand, spokesmen for the insurance industry and various manufacturering associations assert that the root of these problems lies in the civil justice system. Legal factors such as the expansion of liability and large awards for non-economic damages have led to serious problems in the provision of insurance.(1) On the other hand, consumer advocacy groups claim that these problems are caused by the non-competitive ratemaking practices of the insurance industry. According to this view, the insurance crisis of the mid 1980's was manufactured by the industry as a response to a fall in the rate of return that insurers receive on their investments, and their solution would be to impose further regulation on the industry. The purpose of this article is to investigate this issue by examining the effects of tort law on the performance of commercial liability insurers. Strict products liability is the prevailing tort doctrine for most of the United States. According to this doctrine, manufacturers are liable for all harms that are proximately caused by defective products, regardless of negligence on their part. This does not mean, however, that manufacturers are liable for all harms caused by their products. In theory, the doctrine of strict liability limits manufacturers' liability to harms caused by defective products, and then only when it is the case that the harm is proximately caused by a defect rather than by consumer misuse or voluntary assumption of risk. In practice, however, these theoretical limitations are often unclear and unpredictable.(2) Under a doctrine of absolute liability suppliers would be liable for all accident losses that resulted from the use of their products. Thus, the difference between strict and absolute liability is that the former places limitations on suppliers' obligations and duties to consumers. When the modern doctrine of strict liability fails, in practice, to place feasible and consistent limits on the size and scope of manufacturers' liability, it tends toward a standard of absolute liability which creates serious legal hazards for the provision of insurance. Under the doctrine of strict liability a supplier must offer an implicit warranty that the product is safe and free from defect. Strict products liability may be thought of as a type of mandatory accident insurance because it requires that manufacturers indemnify the users of their products against any harms that are the result of latent defects. Whether manufacturers self insure or purchase products liability insurance, placing limitations on the extent of their liability is necessary in order to facilitate the process of making actuarially sound estimates of expected losses. Without these limitations insurers will find it increasingly difficult to predict what harms suppliers will be liable for, and how large the damages will be. Thus as tort standards tend toward absolute liability, it becomes increasingly difficult for the insurance industry to assess risks and establish appropriate premiums. This article uses loss-ratio data by state and insurer group to assess empirically the manner in which liability doctrines affect both relative prices and underwriting risk faced by commercial liability insurers. …