Page 145 - Liability Insurance IC74

Guide for Liability Insurance

The insurer who is required to pay the relief, shall deposit
the award within thirty days of announcement. If not
deposited, the Act provides that the amount can be
recovered from the insurers as arrears of land revenue
or as of public demand.

The Rules provide that in awarding the relief the
Collector shall insure that the maximum liability of the
insurers under the policy does not exceed the limits
stipulated in the Act, viz Rs. 5 crores (a.o.a) and Rs. 15
crores (a.o.y).

Any award in excess of these limits are met from the
Environment Relief Fund. If the award exceeds even
the insurance and relief fund together, the excess has
to be made good by the owner.

(b) Exemptions from compulsory insurance - Repeat
of Q3 of May 2007

The following may be exempted from compulsory
insurance by the Central Government :
The Central Government.
e) Any State Government.
f) Any corporation owned or controlled by the Central

or State Government or
g) Any local authority.

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