PUBLIC’ LIABILITY INSURANCE (ACT POLICY) The Public Liability Act, 1991 was made effectivé froin 1.4.1991. The object of this Act is lo provide through insurance immedi: e relief by “Owners” to Persons affected due {o “accident” while “handling” "hazardous substance on “no fault liability basis", This has also been brought under Tariff. The definition of “Owner" is so comprehensive as to cover any person who owns or has Control over any hazardous substance al the time of accident. This includes any Firm of ils partners, Association or its members, Company .or ils Directors and all other persons associated and responsible to that Cempany in, the conduct of their business. The various terms like “Accident”, “Hazardous substances” as defined in the Act are given below; Accident means an accident involving a fortuitous, sudden or unintentional occurrence while handling any hazardous substance ‘resulting in continuous, intermittent or repeated exposure to death of, or injury to any person or damage to any property bul does not include an accident by reason only of war or radioactivity. “Handling” in relation to any hazardous substance, means the manufacture, Processing, treatment, package, storage, transporlalion by vehicle, use, collection, destruction, conversion uffering for sale, transfer or the like of such hazardous substance. = “Wazardous Substance” means any substance or preparation which is defined as hazardous substance under the Environment (protection Act, 1986) and exceeding such quantity as may be specified, by notification, by the Central Government. “Hazardous Substence"’ means any substance or preparation which, by we eae a LM al fh reason of its chemical properties or handling is liable to cause ‘harm. to human beings, other living creatures, plants, micro-organism, property or the environment (as per the Environment (Protection) Act 1986.) INSURANCE LIMITS : ‘Any one accident’: Minimum equal (o Paid.up capital upto a maximum of Rs.5 crores. “Any one year’: 3 limes of ‘Any one accident’ limit subject to a maximum of Rs.15, crores. LIABILITY BEYOND INSURANCE : In case of claim/s exceeding the above statutory limil/s, it is o.be mel by the Environmental Rellef Fund to be set up under Seé. 7A of the Act and managed by the Authority appointed by the Central Government. 215 [www © 2 w a w IV UCC CCT TT TU ce and the Relief / Fund is to be rhe liability beyond the total of the insu borne by the “Owner CONTRIBUTION TO THE RELIEF FUND semium chargeable is to be paid simultaneously by Equal to the insurance pi um to the underwriting Company every owner with the insurance premi All proposals can be rated and accepted at DO level in terms of the rating structure laid down by. them SCHEDULE OF COMPENSATION : i) Reimbursement of medical expenses incurred up to a maximum of Rs.12,500/- in each case ccident the relief will be Rs.25,000/- per person in ii) Fora Fatal A if any incurred addition lo reimbursement of medical expenses. on the victim up to a maximum of Rs.12,500/-. iii) For permanent total or permanent partial disability or other injury or sickness, the relief will be : a) Reimbursement of medical expenses incurred, if any, up to a maximum Rs.12,500/- in each case and, . b) Cash relief on the basis of percentage 0! disablement as Casitied by an authorised physician. The relief for (otal permanent disability will be Rs.25,000/- iv) For logs of wages due to temporary pertial disability which Fojuee the earning capacity of the victim, there will be fixed monthly relief not exceeding Rs.1,000/- per monih Uh loa mon nly ef3 months provided the victim has been hospitalised fora period exceeding 3 days and above 16 years of age. v) In respect of damage to private property. uP 10 Rs.6000/- per claim. CLAIM PROCEDURE - AS PER PROVISIONS OF THE ACT. a) As per Sec.6 (2) & (3), every application for relief is to be made within 8 years of the occurrence to the Collector. b) The application as per Rule (4) is to be accompanied by the following; i) Authorised physician's certificate regarding disability / * injury / illness: caused by the accident. 216Death certificate and / or post-mortem certificate case of Falal Accident the iii) Employer's’ certificate regarding loss of wages due to * temporary partial disablement with proof of hospitalisation exceeding 3 days and cerlificale proving the age uf ihe victim. iv) Medical bills and receipts. v) Certificate of cost of repairs or replacement to private property damaged by the accident. vi) Any other relevant document. APPLICATION FOR RELIEF ; This is lo made by the injured / owner of the damaged property / legal representatives of the deceased / authorised agent. It has to be made to the Collector in the prescribed format wilh necessary documents. IU should be made within, § years of the occurrence of the accident This relief is payable to any perscn other than a “Workman”. “Workman” has the meaning assigned to il in the Workman Compensation Act, 1923. By implication employees. other than such workman are eligible for compensation. The compensation should be paid by the Insurer within 30 days of announcement of the Award by the Collector. RATING UNDER PUBLIC LIABILITY INSURANCE ACT 1. The turnover loading be restricted to the turnover of only such units / operations which are involved in the handling of notified hazardous substances. 91) Mt cturing Unit :. Entire Annual, Gross Sales Turnover including all levies and (axes of manufacturing unils handling hazardous substance as defined in the PLI Act 1991. For the purpose of this Insurance, the lerm “units” shall mean all operations being carried out in the manufacturing. complex in one location, 9(2) Godown and. Warehouse Owners : Total Annual Rental’Receipt -of premises handling hazardous substances as defined in the PLI Act 1991. 279(3) Transport operation ~ Total annual freight receipts 9(4) Others ~ Total annual Gross receipts 2: The Tariff Advisory Committee has decided to dispense. with the system of special rating under the class of insurance. The rating schedule for Public Liability Insurance Cover under PLI Act 1991 is as under :- PREMIUM FOR PUBLIC LIABILITY INSURANCE COVER UNDER THE PUBLIC LIABILITY ACT 1991: A) ON FULL LIMIT OF INDEMNITY : ANY ONE ACCIDENT. Limit of Indemnity (Rs) A?A Rate por Mille Upto 1.00 lac 0.70 Upto 2.50 lac _ 0.75 | Upto 5.00 lac | 0.80 ““Yptotooowe = t—~Si*C~S*s 0s )|t~™ / “Upto 20.00 tac ° 0.90 - Upto 50.00 lac 0.95 - Upto 100.00 lac y 4.00 “| Upto 269.00 lac "| 4.05 Upto 500.00 lac ~ 1.10 ; 2sShi bee eee eee ee ee ee ee edd TIME LIMIT = For filing an application 5 years from the occurrence of for relief accident For complying all formalities 3 months from the date of receipt and announcing and Award of application. For delivering copies of the 15 days from the date of Award. Award’to the parties. For satisfaction of the Award 30 days from the date of the Award. if not paid within this period, such amount shall be treated as arrears of land revenue. 220