Page 39 - Insurance Times May 2022

OVERVIEW OF

PUBLIC

LIABILITY

INSURANCE

ACT, 1991

T he advent of the industrial revolution has We are aware that worst industrial disaster in the world

brought about the social impact of accidents in
happened on a cold winter night in the early hours of 3rd
manufacturing plants. With the evolution of
December, 1984 in Bhopal. Nearly 25,000 people died in that
sophisticated manufacturing product lines and
use of hazardous chemicals, the risk for humans is high. incident and lakhs of people were injured.
According to the recent report published by the National A need to enact one Statute law was felt by Government of
Disaster Management Authority (NDMA), 130 major India after that event. The Public Liability Insurance Act (PLI
chemical accidents have been reported in the last decade, Act), 1991 has been enacted and effected from 01st April,
resulting in 259 deaths and 563 injuries. 1991. The object of this Act is to provide through INSURANCE
immediate relief by Owners to persons affected due to
Majority of the people affected due to such industrial accidents while handling hazardous substances on NO FAULT
accidents are found to be from the economically weaker LIABILITY basis i.e., claimant need not be required to
sections and suffer huge financial hardships as they get establish that the death, injury or damage in respect of
delayed relief and compensations. However, workers of which the claim has been made was due to any wrongful
industrial units are protected under Workmen Compensation act, neglect or default of any person.
Act, 1923, but there is no such protection for the affected
public. The definition of Owner includes any Firm or its partners,
Association or its members, Company or its Directors and
About the author all other persons associated and responsible to that Company
in the conduct of their business and also covers any person
Swagata Karmakar who owns or has control over any hazardous substance at
M.A. (Economics), International Post the time of accident.
Graduate Diploma in Insurance-
IIRM, Hyderabad, F.I.I.I.. According to Section 4(2A) of the PLIAct, Insurance Policy is

The Insurance Times, May 2022 39