Page 105 - Liability Insurance IC74

Guide for Liability Insurance

damages is excluded on the grounds of public policy.
The purpose of fines, penalties, punitive damages
etc is punishment and deterrence, hence insurance
cannot be provided.

(vi) Liability for claims arising out of transportation of
hazardous substances. This can be covered on
payment of extra premium.

Q4. What are the provisions in Public Liability Act
1991 relating to:

Ans: (a)No-fault Liability - Section 3 of Public Liability
Insurance Act 1991 provides that where death or injury
to any person or damage to any property has resulted
from an accident, the owner shall be liable to give such
relief as specified in the Schedule of the Act.

In any claim for relief, the claimant shall not be required
to establish that the death, injury or damage was due to
any wrongful act, neglect or default of any person. This
is known as No-fault-liability.

(b) Compulsory Insurance - According to Section 4 the
liability has to be compulsorily insured under a contract
of insurance. The insurance policies have to be renewed
from time to time, so that policies are in force throughout

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