Liability Insurance

The Public Liability Act, 1991 was made effective from 1st April 1991. The object of this Act is to provide through insurance immediate relief to persons affected due to “accident” while “handling” “hazardous substance” by the owners 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 at the time of accident. This includes any Firm or its partners. Association or its members, Company or its Directors and all other persons associated and responsible to that Company 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 but 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, transportation by vehicle, use, collection, destruction, conversion, offering for sale, transfer or the like of such hazardous substance.

“Hazardous 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.

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