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PUBLIC LIABILITY (ACT) INSURANCE

ABOUT

We live in a world where chemicals, several of them hazardous are required for end use or used to make other products. Public Liability (Act) Insurance policy is taken in the name of the owner who is handling any “hazardous substance”. The Policy will cover liability of the owner to give relief on the “principle of no fault.”

According to the “principle of no fault” if death or injury to any person (other than a workman) or damage to any property has resulted from an accident arising out of the handling of hazardous substances, the owner of the hazardous substances shall be liable to give such amount of relief as is specified.

As per the Public Liability Act, 1991, every owner handling any hazardous substance is required to obtain insurance for the purpose of providing relief to affected persons. The list of hazardous substances with limits beyond which Public Liability Insurance must be obtained is published in “The Environment (Protection) Act, 1986”. As it is compulsory for businesses handling certain hazardous substances above certain quantities hence failure to obtain compulsory insurance is punishable as per the Act.

This insurance does not cover civil or criminal fines or penalties imposed by law, punitive or exemplary damages.

PUBLIC LIABILITY (ACT) INSURANCE

BENEFITS

LIMITS OF LIABILITY (SUM INSURED)

  • The Policy is compulsory as per the Act and amounts of relief are fixed by the Act for death, types of disabilities, loss of wages due to temporary partial disability, damage to any third party property, etc.
  • In view of the above, no separate limits need to be mentioned.

LIABILITY COVERED

  • The Policy will indemnify the owner against the statutory liability arising out of accidents occurring during the policy period due to handling hazardous substances as provided for in the said Act.

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