The Public Liability Insurance Act 1991


The Public Liability Insurance Act 1991

Introduction: The Public Liability Insurance Act has been inserted on 22nd January 1991. This Act has been inserted to provide immediate relief for the person who affect by the accident while handling hazardous substance, it is the liability of the Industries or factory to safeguard the employees physical harm or death of the employees during the course of employment, this burden of compensate of industries has been shifted toward the insurance company by giving premium so that to sake of welfare of the employees and guarantees to safeguard the compensate the government of the India implemented this Act.

Liability to give relief: The liability to give relief under this Act is based on ‘no fault principle ‘. Section 3 of the Act says that where death or injury to any person or a workmen or damage to any property has resulted from an accident, the owner of the factory shall be liable to give such relief as is specified in the Scheduled for such death injury or death or damage. The Insurer while making a claim for compensation shall not be required to plead and establish that death, injury or damages in respect of which the claim has been made was because of any improper demonstration, disregard or default of any individual. The Scheduled provide relief as follows:
Reimbursement of medical expenses up to Rs 12,500 in each case.
Other than for fatal accident the relief will be Rs 25,000 per person.
For any kind of injury or sickness, the relief will be:-
Reimbursement of medical expenses up to Rs 12,500 in each case.
An Authorized physician provides cash relief on the basis of percentage of disablement. The relief of total permanent disability will be Rs 25,500/-.
For any private property damages the relief up to Rs 6000/-.
                                             
Duty of owner of Industries or Company (Section4): The duty of the owner of industries is to safeguard the life of members of the company who involves in the handling of hazardous substance and life insurance.
The Owner of any hazardous company shall take out insurance policy of the employees as soon as possible.
Before expiry of the insurance policy it should be renew within the limitation.
The amount of insurance should not be more than fifty crore rupees and not less than paid up capital.
                            
Power to give direction: Under Section 12 of the Act Central Government has power to issue direction to any owner or any officer authority or agency to prohibit or regulate the handling of any hazardous substance or to stop or regulate the supply of electricity, water, or any other service and another power is also given to the Central Government or any person authorized by it to make application to Courts for retraining the owner from handling hazardous substances.


Penalty: If the owner of the industry does not take out insurance policy or fail to keep the policy alive as long as hazardous process continue or fail to regulate the direction issued by the Central Government, he shall be punish with a minimum imprisonment of one and half year which shall be extend up to six years or with fine of not less than one lakh rupees or with both.

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