Public Liability Insurance: Public Liability Insurance Act, 1991 (An Overview) Claims, Role of Consumer courts and Insurance Ombudsman

A gas leak at a chemical plant in Taloja sends forty residents to hospital overnight. Some lose wages, a few have lasting injuries, and none of them ever signed a contract with the factory. How do they get money quickly, without spending years proving who was careless? And if the factory’s insurer drags its feet on its own claim, where does the factory go? This topic joins three answers: public liability insurance, the 1991 Act that makes it compulsory for hazardous industry, and the forums that hear insurance disputes.

In two minutes

Public liability insurance covers an insured’s legal liability to third parties for injury or damage; the Public Liability Insurance Act 1991 makes such cover compulsory for those handling hazardous substances and gives victims no-fault relief through the Collector, while policyholders’ disputes with insurers go to consumer commissions and the Insurance Ombudsman.

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