The Public Liability Insurance Act, 1991

The Public Liability Insurance Act, 1991 is a piece of legislation in India that provides for the compulsory insurance of liability for damage to the public or any property caused by or arising out of the handling of hazardous substances. The Act applies to the handling of hazardous substances in industrial, mining, and agricultural operations, as well as in the transport of such substances. The Act provides for a system of liability insurance that is mandatory for the industries mentioned above. The Act also provides for the creation of an independent Board for the regulation, controlling and supervision of the industry.

The main provisions of the Public Liability Insurance Act include:

Definition of Hazardous Substance: The Act defines a hazardous substance as any substance or preparation which, by reason of its chemical or physical properties, is likely to cause harm to human life, health, or property.

Insurance Requirements: The Act requires the operator of an industrial, mining, or agricultural establishment, or the owner of a vehicle carrying hazardous substances, to take out insurance covering their liability for damage to the public or any property caused by or arising out of the handling of hazardous substances.

Amount of Insurance: The Act requires the operator or owner to take out insurance covering their liability for a minimum amount of Rs. 50 lakhs.

Insurance Companies: The Act provides that only insurance companies authorized by the Insurance Regulatory and Development Authority (IRDA) may provide insurance coverage under the Act.

Inspections: The Act provides for the inspection of industrial, mining, and agricultural establishments, and of vehicles carrying hazardous substances, by the insurance companies and the IRDA, to ensure compliance with the insurance requirements.

Penalties: The Act provides for penalties for non-compliance with the insurance requirements, including fines and imprisonment.

Claims Process: The Act provides for a process for making claims for compensation in the event of damage to the public or any property caused by or arising out of the handling of hazardous substances.

The Public Liability Insurance Act is an important piece of legislation in India, as it provides for the compulsory insurance of liability for damage to the public or any property caused by or arising out of the handling of hazardous substances. The Act is designed to ensure that the public is protected from the potential harm caused by the handling of hazardous substances, and to ensure that adequate compensation is available in the event of damage.

The Act is widely recognized as an important piece of legislation, and is considered to be a model for similar legislation in other countries. The Act provides a valuable safety net for the public in the event of damage caused by the handling of hazardous substances, and helps to ensure that the public is protected from the potential harm caused by such substances.

Overall, the Public Liability Insurance Act plays an important role in protecting the welfare of the public in India, and provides a valuable safety net for the public in the event of damage caused by the handling of hazardous substances. The Act is widely recognized as an important piece of legislation, and is considered to be a model for similar legislation in other countries.