Page 40 - Insurance Times May 2022

to be purchased by the owner for an amount up to the paid-up capital of the Undertaking but not exceeding Rs.50 Crores.
But as per Rule 10 framed under the Act provides that the maximum aggregate liability of the Insurer to pay relief under
an award to the several claimants arising out of an accident shall not exceed Rs.5 crores (AOA) and in case of more than
one accident during the currency of the policy shall not exceed Rs.15 crores (AOY) in the aggregate.

In case of claims exceeding this statutory limits, it is to be met by Environmental Relief Fund (ERF) set up under Sec. 7A
of the Act and managed by the Authority appointed by the Central Government. The liability beyond the total insurance
and the Relief/Fund is to be borne by the OWNER.

Environmental Relief Fund (ERF) is created by contribution of equal amount of premium charged and collected from the
Owner by the Insurance Company.

Schedule of Compensation

Section 3 (1) of PLIAct, 1991 provides Relief in the following scale:

Sl.No. Impact of accident Quantum of Relief per person Additional: Actual
Medical Expenses
incurred per person
1 Death Rs.25,000/- Rs.12,500/-
2 Permanent Total Disability Rs.25,000/- Rs.12,500/-
3 Permanent Partial Disability Amount of Relief on the basis of %age of Rs.12,500/-
disablement as certified by Registered
medical practitioner
4 Temporary partial disablement Fixed monthly Relief not exceeding Rs.12,500/-
which reduces the earning Rs.1,000/- per month up to a maximum of
capacity of the victim 3 months, provided the victim has been
hospitalized for a period exceeding 3 days
and is above 16 years of age.
5 Actual Damage to property Up to Rs.6,000/- Not applicable

How to get relief under this act: terms of such award and in accordance with the Scheme
made under the Act to the claimants.
Under Section 6 of the PLI Act, 1991, an application for claim
for relief to be made in prescribed form to the Collector of
the District within 5 years of the occurrence of the accident Introduction of ERF Scheme:
by the person or legal representative of the deceased or by In 2008, the Central Government has notified and
the owner of the property damaged by accident. established "The Environment Relief Fund Scheme" known
as ERF Scheme and United India Insurance Co. Ltd. was
On receipt of application, the Collector would hold an inquiry appointed as its Fund Manager. The funds existing in the
in to the claim and make an award determining the amount custody of various Insurance Companies at the time of
of relief and specifying the person to whom such amount of notifying the Scheme was transferred to ERF Scheme and
relief to be paid. subsequently the same Insurance Company remains Fund
Manager. The contribution collected from the owner at the
Thereafter, the collector arranges to deliver copies within time of collection of premium by the Insurance Companies
15 days from the date of award and Insurer deposits the are transferred in the ERF Scheme. The Fund Manager is
amount within a period of 30 days from the date of obliged to submit the annual statement of accounts on the
announcement of award. management of funds to the Central Government. The
quantum of this fund as on March, 2019 was over Rs. 800
The Collector would arrange to pay from the Relief Fund, in Crores.

40 The Insurance Times, May 2022