Public Liability Insurance Act, 1991

A gas leak at a chemical plant sends hundreds of neighbours to hospital. Normally they would have to prove in a civil court that the factory was careless, and wait years. The Public Liability Insurance Act, 1991 turns that around: the owner must pay immediate relief whether or not anyone was careless, and must hold insurance beforehand so that the money exists. How does the Act work section by section?

In two minutes

The Public Liability Insurance Act 1991 gives immediate no-fault relief to victims of accidents while handling hazardous substances (s.3), requires the owner to take out insurance before handling begins (s.4), lets the Collector decide claims (ss.5–7), creates the Environmental Relief Fund (s.7A) and penalises non-compliance (ss.14–17B), without taking away the victim’s other remedies (s.8).

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