FREE SEMINAR ON PRODUCT LIABILITY AND RECALL

[National Chamber of Exporters of Sri Lanka]

IMPORTANT COMMUNICATION

Dear Members,

FREE SEMINAR ON PRODUCT LIABILITY AND RECALL CONDUCTED BY THE NATIONAL
CHAMBER OF EXPORTERS OF SRI LANKA (NCE) IN COLLABORATION WITH CHARTIS
INSURANCE LTD.

The NCE is pleased to inform all member companies the conduct of the
above seminar FREE OF CHARGE, INCLUSIVE OF MORNING TEA AND LUNCH.
HOWEVER, PARTICIPATION WILL BE STRICTLY LIMITED TO 100 MEMBERS ON A
FIRST COME FIRST SERVED BASIS. The seminar, which is sponsored by
Chartis Insurance Limited, will be addressed by specialists of the
undernoted specific subject areas.

THE SEMINAR WILL BE CONDUCTED ON 25TH AUGUST 2010 FROM 8.45 A.M. TO
12.45 P.M. AT THE UNION BALL ROOM, HILTON RESIDENCIES, NO.200, UNION
PLACE, COLOMBO 2. REGISTRATION WILL BE AT 8.30 A.M.

AN OFFICIAL INVITATION TO THE CEO OF YOUR COMPANY WILL FOLLOW.

Members will appreciate that the Seminar will provide them a unique
opportunity to gain knowledge of the above vital areas and how best
they could protect themselves. MEMBERS ARE THEREFORE, KINDLY REQUEST
TO NOMINATE PARTICIPANTS WITHOUT DELAY TO THE CHAMBER SECRETARIAT BY
18TH AUGUST 2010, THE VERY LATEST.

It is most desirable that CEOs and / or senior decision making
officials of member companies participate to make best use of the
seminar. The Chamber will endeavour to accommodate a maximum of 3
participants per Member Company depending on the responses, while
ensuring the participation of a maximum number of member companies.


BACKGROUND
In the increasingly competitive trading environment, Product Liability
and related issues have become vital to exporters, specially those
exporting to sensitive markets. It is therefore, imperative that
exporters have a thorough knowledge and understanding of the Rules &
Regulations related to Product Liability and the means to safeguard
against product liability.

In this context, the seminar will cover the three specific areas of;
(1) Product Liability
(2) Product Recall &
(3) Trade Credit Insurance

(1) Product Liability
Exporters and Traders are becoming increasingly vulnerable to the
determination of different laws and jurisdictions as regards
responsibility for damages resulting from the use of their products.
Increasing awareness of consumers in discerning markets in the
exercise of their rights coupled with a pro-claimant judicial attitude
has lifted cover for Product Liability from a sleep-easy attitude to a
necessary cover.

The above risk is enhanced when you export to highly litigious
jurisdictions, where even unknown to you, a Product Liability
Insurance for your products may have been effected by your overseas
buyer/reseller, the cost of which may be hidden in other commercial
considerations. In this context, it is best to obtain a Product
Liability Insurance with you as the Primary Insured to get the full
benefit of duty-to-defend claims, provisions to suit your requirements
regarding policy limits, deductibles, etc. It is also important to
note that your understanding and cover related to Product Liability
ENHANCES YOUR ACCEPTABILITY IN THE INTERNATIONAL ARENA AS AN EXPORTER
OF REPUTE.

A Product Liability Policy protects the insured against any legal
liability claims that arise from bodily injury/physical damage to
property caused by the insured’s product after it has left the custody
or control of the insured. In this context, “Product” includes
anything that has been designed, specified, formulated, manufactured,
constructed, installed, sold, supplied, distributed, treated,
serviced, altered or repaired, by or on behalf of the insured.

(2) Product Recall
Third Party and Product Liability Insurance may cover legal
liabilities for injury or damage, but they will not usually cover the
cost of recalling a defective product. Considerable costs can be
incurred in recalling products and in rebuilding public confidence.
The chain of events triggered by a recall whether voluntary or
compulsory, can include a drop in sales, loss of customer confidence,
and loss of a critical supply contract, as well as loss of hard-won
retail shelf space.

In this context ‘Chartis Recall Insurance’ can protect businesses from
the devastating effects of such recalls; and covers the key expense
areas. Chartis Recall Insurance also provides the expertise of
independent consultants to guide a company through the critical first
few weeks of a Product Recall.

(3) Trade Credit Insurance
The Chartis Policy in this context provides coverage for a company’s
accounts receivables and indemnities a policy holder for the invoice
value of products and services delivered to approved buyers that
default due to financial or political reasons.

Regards,

NATIONAL CHAMBER OF EXPORTERS OF SRI LANKA


Rasa Weerasingham L S G Tillekeratne
EXECUTIVE DIRECTOR DIRECTOR MEMBER SERVICES
LSGT:ndef