bill in the US Congress on product liability reform.

The Republican bill would make it harder to win punitive damages in lawsuits against companies whose products result in injuries.

Mr. Bradford Rich, the executive vice president and general counsel for excess liability carrier, ACE Ltd., confirmed his company and others here have been keeping a close eye on the proposals.

He said yesterday: "We do not engage in trade or business in the United States, so there is no direct lobbying by us.

We have counsel who monitor that for us.

"We, and many members of the insurance industry, would prefer to see some more reasonable approach to punitive damages.

"We offer suggestions through monitoring counsel from time to time that we think may be helpful in the debate about these issues.

"There are lots of issues they are talking about. Some of them are fairly arcane, some of them are procedural and some of them may be fairly difficult to do.

"Efforts at product liability reform broadly have been worked on and considered by the insurance industry probably for about 15 years.

"This particular issue however, is as a result of concerns brought to Congress by general industry, not insurers.'' ACE and fellow excess liability providers XL and Starr Excess were fofmed in response to heavy liability awards being made against US corporations, which in turn caused a liaibility insurance crisis in the US.

The House is expected to vote next week on the legislation, which is part of the Republican "Contract With America''. It was approved last Thursday by the House Judiciary Committee, 21-11, mostly along party lines.

The measure would establish a national uniform set of laws on product liability and limit the sums awarded to injured people. Supporters say it is needed to free business from a patchwork of state laws and to limit court-clogging lawsuits.

Critics contend the bill would deprive citizens of legal redress if they are harmed by defective products and would usurp states' rights.

The campaign on both sides is in full swing. Texas Rep. John Bryant, one of the lawmakers leading the opposition, called the bill the "Corporate Wrongdoers' Protection Act''.

Rep. Henry Waxman said opponents hope the legislation will face a tougher reception in the Senate and that President Clinton will threaten a veto.