Tuesday, 27 May 2014

Public Liability Insurance Act, 1991 - India


Object of the Act - An Act to provide for public liability- insurance for the purpose of providing immediate relief to the persons affected by accident occurring while handling any hazardous substance and for matters connected therewith or incidental thereto.
Payment of Relief
Where any death or injury (injury includes permanent total or permanent partial disability or sickness arising out of an accident) is caused to any person (OTHER THAN A WORKMAN, workman has the same meaning as assigned under the Workmen’s Compensation Act 1923) or damage to any property has resulted from an accident, the owner shall be liable to give such relief as specified in the Schedule.
Schedule
Reimbursement of medical expenses incurred up to a maximum of Rs. 12,500 in each case.
For fatal accidents the relief will be Rs. 25,000 per person in addition to reimbursement of medical expenses if any, incurred on the victim up to a maximum of Rs. 12,500.
For permanent total or permanent partial disability or other injury or sickness, the relief will be (a) reimbursement of medical expenses incurred, if any, up to a maximum of Rs. 12,500 in each case and (b) cash relief on the basis of percentage of disablement as certified by an authorised physician. The relief for total permanent disability will be Rs. 25,000.
For loss of wages due to temporary partial disability which reduces the earning capacity of the victim, there will be a fixed monthly relief not exceeding Rs. 1,000 per month up to a maximum of 3 months: provided the victim has been hospitalised for a period of exceeding 3 days and is above 16 years of age.
Up to Rs. 6,000 depending on the actual damage, for any damage to private property.
Owner
"Owner" means a person who owns, or has control over handling any hazardous substance at the time of accident and includes,-
In the case of firm, any of its partners;
In the case of an association, any of its members; and
In the case or a company, any of its directors, managers, secretaries or other officers who is directly in charge of, and is responsible to the company for the conduct of the business of the company.
Other provisions:
Every owner shall take out, before he starts handling any hazardous substance, one or more insurance policies providing for contracts of insurance for insurance against liability to give relief as mentioned above.
Any owner handling hazardous substances before the commencement of this Act, shall take out insurance policies within 1 year.
Every owner shall get the insurance policies renewed from time to time before the expiry of validity thereof so that the insurance policies may remain in force throughout the period during which the handling is continued.
No insurance policy shall be of an amount less than the amount of paid up capital of the undertaking handling any hazardous substance and owned or controlled by that owner and more than that amount, not exceeding fifty crore rupees as maybe prescribed.
Every owner shall, together with the premium, pay to the insurer, for being credited to the Relief Fund, such further amount, not exceeding the amount of premium, as maybe prescribed.
Insurer shall remit the further amount to the Relief Fund in prescribed form and manner and if he fails to do so, the amount shall be recoverable from the insurer as arrears of land revenue or of public demand.
Central Government may exempt any Central/State Government, corporation owned or controlled by the Central/State Government or local authority, provided that the owner exempted has established and maintained a fund for meeting the liability imposed by this Act.
When it comes to the notice of a Collector that an accident has occurred within his jurisdiction, he shall verify occurrence of the accident and cause publicity to be given in a  manner he deems fit for inviting applications.
An application for claiming relief maybe made:
By the person who has sustained injury;
By the owner of the property to which damage has been caused;
Where death has resulted from the accident, by the legal representatives of the deceased;
By any agent duly authorized by any of the above.
No application for relief shall be entertained unless made within 5 years of the accident.
On receipt of application, the Collector shall after giving notice of the application to the owner and after giving the parties an opportunity of being heard, hold an inquiry into the claims and make an award determining the amount of relief he deems fit and specifying the person/s to whom the relief shall be paid.
Collector shall arrange copies of the award to be delivered to the parties concerned within 15 days from the date of the award.
When an award is made:
an insurer who is required to pay any amount in terms of such award, shall within a period of 30 days, deposit the amount in such manner as the Collector may direct;
The Collector shall arrange to pay from the Relief Fund, in terms of such award, such amount and in such manner as maybe prescribed under the Scheme.
The owner shall deposit such amount within such period and in such manner as the Collector may direct.
Where the owner fails to deposit the amount of such award within the specified period, such amount shall be recoverable as arrears of land revenue or of public demand.
Any claim shall be disposed of within 3 months from receipt of the claim.
Where an owner is likely to remove or dispose of any of his property with a view to avoid making payment of the amount given in the award the Collector may in accordance with the Civil Procedure Code, grant a temporary injunction to restrain it.
Central Government may, by notification in the Official Gazette, establish a fund to be known as the Environment Relief Fund which will be utilized for paying, in accordance with the Act and the scheme, relief under the award made by the Collector. The Central Government may make a scheme specifying the manner in which the Fund shall be administered and the payment of relief therefrom. The right to claim under this scheme shall be over and above any other law for the time being in force.
If the Central Government or any person authorized by the Government has reason to believe that any owner has been handling any hazardous substance in contravention of this Act, that Government or that person, as the case maybe, shall make an application to the Court, not inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class for restraining such owner from such handling and the Court may pass such order as it deems fit.
Whoever contravenes any provisions relating to the taking out of insurance policies or does not follow any of the directions issued by the Central Government shall be punishable with imprisonment for a term which shall not be less than one year and six months and which may extend to six years, or with fine which shall not be less than one lakh rupees or with both. Whoever contravenes any of the aforesaid provisions for the second time, shall be punishable with imprisonment which shall not be less than 2 years and which may extend to 7 years and with fine which shall not be less than one lakh rupees.
If an owner fails to supply any information as demanded by a person authorized in this regard by the Central Government or obstructs the Government in the exercise of its functions with imprisonment which may extend to three months and with fine which may extend to ten thousand rupees or with both.

_______________________________________________________________________

No comments:

Post a Comment