Public Liability Insurance Act
NO. 6 OF 1991
The Public Liability Insurance act, 1991 is an Act to provide for public liability insurance for the purpose of extending immediate relief to the persons affected by accident occurring while handling any hazardous substance in a project, industry or storage and for matters connected therewith or incidental thereto. The broad provisions of this act are:
| Owner of the project is to provide relief, as specified, in case of death, or injury to any person (other than workman); or damage to property from an accident occurring while handling specified hazardous substances, on the principle of no fault (The schedule for relief and the list of specified hazardous substances covered under the act are given in Annexure XXVII and XXVIII).
| Owner is to draw an insurance policies equal to the paid-up capital of the undertaking, but less than or equal to Rs. 50 crores (max), before handling any hazardous substances.“ Paid-up Capital” in case of an owner not being a company (may be proprietorship partnership firm) implies the market value of all assets and stocks of the undertaking or the date of insurance.
| Owner is to pay additional amounts, as prescribed, to the insurer not exceeding the amount of premium, as contribution to the Environmental Relief Fund established under the Act.
| Owner is to pay the amount of an award as specified by the Collector in the prescribed manner.
| Owner is to comply with the directions under the Act issued in writing by the Central Government, within the specified time, as mentioned in the order. The directions may include: i. prohibition or regulation of handling of any hazardous substances; or ii. stoppage or regulation of the supply of electricity, water or any other service.
THE PUBLIC LIABILITY INSURANCE RULES, 1991
1. Short title and commencement:1) These rules may be called the Public Liability Insurance Rules, 199l. (2) These rules shall come into force on the date of their publication in the of Official Gazette 2. Definitions:In these rules, unless the context otherwise requires- (a) "Act" means the Public Liability Insurance Act, 1991 (6 of 1991); (b) "Advisory Committee" means the committee constituted by the Central government in accordance with section 21 of the Act called the Public Liability Insurance Advisory Committee (PLIAC); (c) "Authorised physician" means any person registered under any Central Act or State Act providing for the maintenance of a register of medical practitioners or in any area where no such last mentioned Act is in force, any person declared by State Government by notification in the Official Gazette to be a qualified medical practitioner, (d) "Fund" means a fund established and maintained by an owner in accordance with provision to sub-section (3) of section 4 of the Act; (e) Words and expressions used in these rules but not defined and defined in the Act shall have the meanings respectively assigned to them in these Acts 3. Application for relief:An application for claim for relief shall be made to the Collector in Form I. 4. Documents that may be required:The claim application shall be made to the Collector in Form I accompanied by such of the following documents as may be applicable (i) Certificate of an authorised physician regarding disability or injury or illness caused by the accident; (ii) Death Certificate and/or post mortem report in the case of a fatal accident;
(iii) Certificate of the employer regarding loss of wages due to temporary or partial disability, with proof of hospitalisation for a period exceeding three days and certificate about the date of birth or age of victim; (iv) Medical bills and receipts;
(v) Certificate of cost of repairs or replacement of private property damaged by the accident; (vi) Any other documents which may have relevance to the claim. 5. Powers of Collector:(i) The Collector may follow such summary procedure...
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