Public Liability Insurance

Governed by Public Liability Insurance Act 1991
Public liability insurance for the purpose of providing immediate relief

Persons affected by accident
Occurring while handling any hazardous substances
Insurance is based on the principle of No Fault Liability
Section 2 (a) Accident

An accident involving a fortuitous, sudden or unintentional occurrence
while handling any hazardous substance
resulting in continuous, intermittent or repeated exposure to
death, or injury to, any person or
damage to any property
but does not include an accident by reason only of war or radio-activity
Section 2 c Handling
In relation to any hazardous substance, means the manufacture, processing,
treatment, package, storage, transportation by vehicle, use, collection,
destruction, conversion, offering for sale, transfer or the like of such
hazardous substance
Section 2 g Owner
Means a person who owns, or has control over handling any hazardous
substance at the time of accident and includes,-
(i) in the case of firm, any of its partners;

(ii) in the case of an association, any of its members; and
(iii) in the case or a company, any of its directors, managers, secretaries or
other officers who is directly in charge of, and is responsible to the company
for the conduct of the business of the company
Section 4
Every owner shall take out, before he starts handling any hazardous substance, one
or more insurance policies providing for contracts of insurance
Every owner shall get the insurance policy renewed from time to time before the
expiry of the period of validity thereof so that the insurance policies may remain in
force throughout the period during which such handling is continued.
No insurance policy taken out by an owner shall be for a amount less than the
amount of the paid-up capital of the under taking handling any hazardous
substance and owned or controlled by that owner and more than the amount, not
exceeding fifty crore rupees.
The liability of the insurer under one insurance policy shall not exceed the amount
specified in the terms of the contract of insurance in that insurance policy.
Every owner shall also, together with the amount of premium, pay to the insurer,
for being credited to the Relief Fund
The Central Government may, by notification, exempt from the operation of subsection (1) any owner, namely:(a) the Central Government;
(b) any State Government,
(c) any corporation owned or controlled by the Central Government or a
State Government; or
(d) any local authority:
5. Whenever it comes to the notice of the Collector that an accident has occurred at
any place within his jurisdiction, he shall verify the occurrence of such accident
and cause publicity to be given in such manner as he deems fit for inviting
applications
6. (1) An application for claim or relief may be madea) by the person who has sustained the injury;
(b) by the owner of the property to which the damage has been caused;
(c) where death has resulted from the accident, by all or any of the legal
representatives of the deceased; or
(d) by any agent duly authorised by such person or owner of such property or all or
any of the legal representatives of the deceased, as the case may be:
Every application under sub-section (I) shall be made to the Collector and shall be
in such form, contain such particulars and shall be accompanied by such
documents as may be prescribed.
(3) No application for relief shall be entertained unless it is made within five years
of the occurrence of the accident.
7. On receipt of an application under section 6, the Collector shall after giving
notice of the application to the owner and after giving the parties an opportunity of
being heard, hold an inquiry into the claim or, each of the claims, and may make an
award determining the amount of relief which appears to him to be just and
specifying the person or persons to whom such amount of relief shall be paid.
(2) The Collector shall arrange to deliver copies of the award to the parties
concerned expeditiously and in any case within a period of fifteen days from the
date of the award.
When an award is made under this section,(a) the insurer, who is required to pay any amount in terms of such award
shall, within a period of thirty days of the date of announcement of the
award, deposit that amount in such manner as the Collector may direct;
(b) the Collector shall arrange to pay from the Relief Fund, in terms of such
award to the person or persons such amount in such manner as may be
specified in that scheme;
(c) the owner shall, within such period, deposit such amount in such manner
as the Collector may direct
(4) In holding any inquiry the Collector may, subject to any rules made in this
behalf, follow such summary procedure as he thinks fit.
(5) The Collector shall have all the powers of Civil Court for the purpose of taking
evidence on oath and of enforcing the attendance of witnesses and of compelling
the discovery and production of documents and material objects and for such other
purposes as may be prescribed; and the Collector shall be deemed to be a Civil
Court
(6) Where the insurer or the owner against whom the award is made fails to deposit
the amount of such award within the period specified such amount shall be
recoverable from the owner, or as the case may be, the insurer as arrears of land
revenue or of public demand.
(7) A claim for relief in respect of death of, or injury to, any person or damage to
any property shall be disposed of as expeditiously as possible and every endeavour
shall be made to dispose of such claim within three months of the receipt of the
application for relief under sub-section (I) of section 6.
(8) Where an owner is likely to remove or dispose of his property with a view to
evading payment by him of the amount of award, the Collector may, in accordance
with the provisions contained in rules I to 4 of Order XXXIX grant a temporary
injunction to restrain such act
8. (1) Thc right to claim relief under sub-section (I) of section 3 in respect of death
of, or injury to, any person or damage to any property shall be in addition to any
other right to claim compensation in respect thereof under any other law for the
time being in force.
(2) Notwithstanding anything contained in sub-section (1), where in respect of
death of, or injury to, any person or damage to any property, the owner, liable to
give claim for relief, is also liable to pay compensation under any other law, the
amount of such compensation shall be reduced by thc amount of relief paid under
this Act.
9. Any person authorised by the Central Government may, for the
purposes of ascertaining whether any requirements of this Act or
of any rule or of any direction given under this Act have been
compiled with, require any owner to submit to that person such
information as that person may reasonably think necessary.

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Governed by Public Liability Insurance Act 1991

Public liability insurance for the purpose of providing immediate relief

Section 2 (a) Accident

(i) in the case of firm, any of its partners;

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