LIABILITY INSURANCE

PRESENTED TO
Dr.D.H.MALINI
PRESENTED BY
SARAVANAN.V
COMPULSORY

PUBLIC

LIABILITY

INSURANCE
 The public liability insurance act 1991 and the
rules framed under it are examined first and
against this background, the insurance policy is
explained.
 PUBLIC LIABILITY
INSURANCE ACT 1991
 “An act to provide for public liability insurance
for the purpose of providing immediate relief
to the persons affected by accident occurring
while handling any hazardous substance and
for matters connected therewith or incidental
thereto”.
 NO FAULT LIABILITY

 Section 3 provides that where death or injury to

any person or damage to any property has
resulted from an accident, the owner shall be
liable to give such relief as is specified in the
schedule of the act.
 COMPULSORY INSURANCE

 According to section 4 the liability has to be

compulsorily insured under a contract of
insurance. The insurance policies have to be
renewed from time to time, so that policies are
in force throughout the period during which
hazardous substances are handled.
 EXEMPTIONS
The Central Government may, by notification,
exempt from Compulsory insurance any owner,
namely;
 the Central Government
 Any State Government
 Any corporation owned or controlled by the
Central Government or a State Government; or
 Any local authority
 CLAIMS PROCEDURE
An application for claim for relief may be made in
prescribed form:
 The person who has sustained the injury;
 By the legal representatives of the deceased, in the
event of death,
 By the owner of the property damaged in the accident,
 By any agent duly authorized by the persons claiming
relief.
 POLICY COVERAGE

 Act
 Accident
 Handling
 Hazardous Substance
 Owner
 Turnover
 EXCLUSIONS

 In respect of fines, penalties, punitive and/or

exemplary damages.
 In respect of damage to property owned leased
etc.
 Arising out of willful or intentional non-
compliance of any statutory provisions.
 CONDITIONS

 The insured owner can not, on his own admit

liability to the third party for the claim without
the consent of the company.
 This is the usual contribution condition.
 The policy may be cancelled by the company
by 30 days written notice. Refund of premium
is made on a proportionate basis.
THANK YOU