Public Liability Insurance Act
The Public Insurance Act was a law that was passed by the Parliament of New Delhi and signed into law by the president on January 22, 1991. The law provides immediate relief to individuals who are injured or involved in an accident while handling any dangerous substance. Any entity that owns a dangerous substance before it is handled is required to obtain one or more public liability insurance contracts to insure against liability.
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Owner Requirement
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When an individual obtains a policy for public liability, the amount of coverage on the policy cannot be less than the paid-up-capital of the business operation. The business operation in the context of the law is the handling of any dangerous substance that is either owned or controlled by an individual owner or a business. The paid-up-capital requirement for purposes of the law is the total value of an owner's assets and stocks if the owner is not a business.
Exemptions
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The Public Insurance Act includes exceptions to the requirement for owners to obtain a public liability insurance contract. An exception is granted to an owner who is the central government, any state government, a corporation or business that is owned by the central or state government and any local authority. An exception will not be given unless a fund has been created and maintained by an owner to meet liability required by the act.
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Claims
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The provision for claims in the act states that a claim will be handled as quickly as possible. Claims can be filed for events that occur such as death or injury that is caused to an individual. A claim can also be filed for damage that occurs to an individual's property. The act also states that claims should take no more than three months to resolve once the application for relief has been received. An application for relief needs to be made by the injured person, owner of damaged property or family member.
Relief Fund
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The Public Liability Insurance Act states that the central government may create an environmental relief fund by placing a notification in the official gazette. The relief fund will be used for paying relief when an award determination has been made by a governmental agency known as the collector. The administration of the fund and the manner in which money is withdrawn from the fund will be determined by the central government after a notification in the official gazette.
Punishment
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Owners that do not carry out a ruling, fail to follow a direction that was instructed or prevent anyone from performing their duties will face specific punishments. Punishments for failure to comply with any provision within the act are punishable with up to three months imprisonment. A fine may also be imposed that will not be greater than 10,000 rupees. The punishments for violations can be applied individually or together.
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