Public
Liability Insurance Act, 1991
(6
of 1991)(1)
[22nd
January 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.
Be
it enacted by Parliament in the Forty-first Year of the Republic of
India as follows:
1.
Short title and commencement - (1) This Act may be called the
Public Liability Insurance Act, 1991.
(2)
It shall come into force on such date as the Central Government may,
by notification, appoint.
2.
Definitions - In this Act, unless the context otherwise requires,
-
1[(a)
"accident" means an accident involving a fortuitous or sudden
or unintended occurrence while handling any hazardous substance resulting
in continuous or 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 radio-activity;]
(b)
"Collector" means the Collector having jurisdiction over the
area in which the accident occurs;
(c)
"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;
(d)
"hazardous substance" means any substance or preparation which
is defined as hazardous substance under the Environment (Protection)
Act, 1986 (29 of 1986), and exceeding such quantity as may be specified,
by notification, by the Central Government;
(e)
"insurance" means insurance against liability under sub-section
(1) of section 3;
(f)
"notification" means a notification published in the Official
Gazette;
(2)[(g)
"owner" means a person who owns, or has control over handling,
any hazardous substance at the time of accident and includes -
(i)
in the case of a firm, any of its partners;
(ii)
in the case of an association, any of its members; and
(iii)
in the case of a company, any of its directors, managers, secretaries
or other officers who is directly in charge of, and is responsible to,
the company for the conduct of the business of the company;]
(h)
"prescribed" means prescribed by rules made under this Act;
(3)[ha) "Relief Fund" means the Environmental
Relief Fund established under section 7A;]
(i)
"rules" means rules made under this Act;
(j)
"vehicle" means any mode of surface transport other than railways.
3.
Liability to give relief in certain cases on principles of no fault
- (1) Where death or injury to any person (other than a workman)
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 for such
death, injury or damage.
(2)
In any claim for relief under sub-section (1) (hereinafter
referred to in this Act as claim for relief), the claimant shall not
be required to plead and establish that the death, injury or damage
in respect of which the claim has been made was due to any wrongful
act, neglect or default of any person.
Explanation
- For the purpose of this section, -
(i)
"workman" has the meaning assigned to it in the Workman's
Compensation Act, 1923 (8 of 1923);
(ii)
"injury" includes permanent total or permanent partial disability
or sickness resulting out of an accident.
4.
Duty of owner to take out insurance policies - (1) Every owner
shall take out, before he starts handling any hazardous substance, one
or more insurance policies providing for contracts of insurance whereby
he is insured against liability to give relief under sub-section (1)
of section 3:
Provided
that any owner handling hazardous substance immediately before the commencement
of this Act shall take out such insurance policy or policies as soon
as may be and in any case within a period of one year from such commencement.
(2)
Every owner shall get the insurance policy, referred to in
sub-section (1), renewed from time to time before the expiry of the
period of validity thereof so that the insurance policies may remain
in force throughout the period during which such handling is continued.
(4)[2A)
No insurance policy taken out or renewed by an owner shall be for an
amount less than the amount of the paid-up capital of the undertaking
handling any hazardous substance and owned or controlled by that owner,
and more than the amount, not exceeding fifty crore rupees, as may be
prescribed.
Explanation:
For the purposes of this sub-section, "paid-up capital"
means, in the case of an owner not being a company, the market value
of all assets and stocks of the undertaking on the date of contract
of insurance.
(2B)
The liability of the insurer under one insurance policy shall not exceed
the amount specified in the terms of the contract of insurance in that
insurance policy.
(2C)
Every owner shall also, together with the amount of premium, pay to
the insurer, for being credited to the Relief Fund established under
section 7A, such further amount, not exceeding the sum equivalent to
the amount of premium, as may be prescribed.
(2D)
The insurer shall remit to the authority specified in sub-section (3)
of section 7A the amount received from the owner under sub-section (2C)
for being credited to the Relief Fund in such manner and within such
period as may be prescribed and where the insurer fails to so remit
that amount, it shall be recoverable from the insurer as arrears of
land revenue or of public demand].
(3)
The Central Government may, by notification, exempt from the operation
of sub-section (1) any owner, namely:
(a)the
Central Government;
(b)any
State Government;
(c)any
corporation owned or controlled by the Central Government or a State
Government;or
(d)any
local authority:
Provided
that no such order shall be made in relation to such owner unless a
fund has been
established
and is maintained by that owner in accordance with the rules made in
this
behalf
for meeting any liability under sub-section (1) of section 3.
5.
Verification and publication of accident by Collector - Whenever
it comes to the notice of
the
Collector that an accident has occurred at any place within his jurisdiction,
he shall verify
the
occurrence of such accident and cause publicity to be given in such
manner as he deems fit
for
inviting applications under sub-section (1) of section 6.
6.
Application for claim for relief - (1) An application for claim
for relief may be made:
- by
the person who has sustained the injury;
- by
the owner of the property to which the damage has been caused;
- where
death has resulted from the accident, by all or any of the legal representatives
of the deceased; or
(d)
by any agent duly authorised by such person or owner of such property
or all or any of the legal representatives of the deceased, as the case
may be:
Provided
that where all the legal representatives of the deceased have not joined
in any such application for relief, the application shall be made on
behalf of or for the benefit of all the legal representatives of the
deceased and the legal representatives who have not so joined shall
be impleaded as respondents to the application.
(2)Every
application under sub-section (1) shall be made to the Collector and
shall be in such form, contain such particulars and shall be accompanied
by such documents as may be prescribed.
(3)
No application for relief shall be entertained unless it is made within
five years of the occurrence of the accident.
7.
Award of relief - (1) On receipt of an application
under sub-section (1) of section 6, the Collector shall, after giving
notice of the application to the owner and after giving the parties
an opportunity for being heard, hold an inquiry into the claim or each
of the claims, and may make an award determining the amount of relief
which appears to him to be just and specifying the person or persons
to whom such amount of relief shall be paid.
(2)
The Collector shall arrange to deliver copies of the award to the parties
concerned expeditiously and in any case within a period of fifteen days
from the date of the award.
(5)[(3)
When an award is made under this section -
(a)
the insurer, who is required to pay any amount in terms of such award
and to the extent specified in sub-section (2B) of section 4, shall,
within a period of thirty days of the date of announcement of the award,
deposit that amount in such manner as the Collector may direct;
(b)
the Collector shall arrange to pay from the Relief Fund, in terms of
such award and in accordance with the scheme under section 7A, to the
person or persons referred to in sub-section (1) such amount as may
be specified in that scheme;
(c)
the owner shall, within such period, deposit such amount in such manner
as the Collector may direct.]
(4)
In holding any inquiry under sub-section (1), the Collector may, subject
to any rules made in this behalf, follow such summary procedure as he
thinks fit.
(5)
The Collector shall have all the powers of a Civil Court for the purpose
of taking evidence on oath and of enforcing the attendance of witnesses
and of compelling the discovery and production of documents and material
objects and for such other purposes as may be prescribed; and the Collector
shall be deemed to be a Civil Court for all the purposes of section
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).
(6)
Where the insurer or the owner against whom the award is made under
sub-section (1) fails to deposit the amount of such award within the
period specified under sub-section (3), such amount shall be recoverable
from the owner, or as the case may be, the insurer as arrears of land
revenue or of public demand.
(7)
A claim for relief in respect of death of, or injury to, any person
or damage to any property shall be disposed as expeditiously as possible
and every endeavour shall be made to dispose of such claim within three
months of the receipt of the application for relief under sub-section
(1) of section 6.
(6)[(8)
Wherein an owner is likely to remove or dispose of his property with
the object of evading payment by him of any amount of the award, the
Collector may, in accordance with the provisions of rules 1 to 4 of
Order XXXIX of the first Schedule to the Code of Civil Procedure, 1908
(5 of 1908), grant a temporary injunction to restrain such act.]
(7)[7A.
Establishment of Environmental Relief Fund - (1) The Central Government
may, by notification, establish a fund to be known as the Environmental
Relief Fund.
(2)
The Relief Fund shall be utilised for paying, in accordance with the
provisions of this Act and the scheme made under sub-section (3), relief
under the award made by the Collector under section 7.
(3)
The Central Government may, by notification, make a scheme specifying
the authority in which the Relief Fund shall vest, the manner in which
the Relief Fund shall be administered, the form and the manner in which
money shall be drawn from the Relief Fund and for all other matters
connected with or incidental to the administration of the Relief fund
and the payment of relief therefrom.]
8.
Provisions as to other right to claim compensation for death, etc.-
(1) The right to claim relief under sub-section (1) of section 3 in
respect of death of, or injury to, any person or damage to any property
shall be in addition to any other right to claim compensation in respect
thereof under any other law for the time being in force.
(2)
Notwithstanding anything contained in sub-section (1), where in respect
of death of, or injury to, any person or damage to any property, the
owner, liable to give claim for relief, is also liable to pay compensation
under any other law, the amount of such compensation shall be reduced
by the amount of relief paid under this Act.
9.
Power to call for information - Any person authorised by the Central
Government may, for the purposes of ascertaining whether any requirements
of this Act or of any rule of any direction given under this Act have
been complied with, require any owner to submit to that person such
information as that persons may reasonably think necessary.
10.
Power of entry and inspection - Any person, authorised by the Central
Government in this behalf, shall have a right to enter, at all reasonable
times with such assistance as he considers necessary, any place, premises
or vehicle, where hazardous substance is handled for the purpose of
determining whether any provisions of this Act or of any rule or of
any direction given under this Act is being or has been complied with
and such owner is bound to render all assistance to such person.
11.
Power of search and seizure - (1) If a person, authorised by the Central
Government in this behalf, has reason to believe that handling of any
hazardous substance is taking place in any place, premises or vehicle,
in contravention of sub-section (1) of section 4, he may enter into
and search such place, premises or vehicle for such handling of hazardous
substances.
(2)
Where, as a result of any search under sub-section (1) any handling
of hazardous substance has been found in relation to which contravention
of sub-section (1) of section 4 has taken place, he may seize such hazardous
substance and other things which, in his opinion, will be useful for,
or relevant to, any proceeding under this Act:
Provided
that where it is not practicable to seize any such substance or thing,
he may serve on the owner an order that the owner shall not remove,
part with or otherwise deal with the hazardous substance and such other
things except with the previous permission of that person.
(3)
He may, if he has reason to believe that it is expedient to do to prevent
an accident dispose of the hazardous substance seized under sub-section
(2) immediately in such manner as he may deem fit.
(4)
All expenses incurred by him in the disposal of hazardous substances
under sub-section (3) shall be recoverable from the owner as arrears
of land revenue or of public demand.
12.
Power to give directions - Notwithstanding anything contained in any
other law but subject to the provisions of this Act, the Central Government
may, in exercise of its powers and performance of its functions under
this Act, issue such directions in writing as it may deem fit for the
purposes of this Act to any owner or any person, officer, authority
or agency and such owner, person, officer, authority or agency shall
be bound to comply with such directions.
Explanation
- For the removal of doubts, it is hereby declared that the power
to issue directions under this section includes the power to direct
-
(a)
prohibition or regulation of the handling of any hazardous substance;
or
(b)
stoppage or regulation of the supply of electricity, water or any other
service.
13.
Power to make application to Courts for restraining owner from handling
hazardous substances - (1) If the Central Government or any
person authorised by that Government is this behalf has reason to believe
that any owner has been handling any hazardous substance in contravention
of any of the provisions of this Act, that Government or, as the case
may be, that person may make an application to a Court not inferior
to that of a Metropolitan Magistrate or a Judicial of a first class
for restraining such owner from such handling.
(2)
On receipt of the application under sub-section (1), the Court may make
such order as it deems fit.
(3)
Where under sub-section (2), the Court makes an order restraining any
owner from handling hazardous substance, it may, in that order -
(a)
direct such owner to desist from such handling;
(b)
authorise the Central Government or, as the case may be, the person
referred to in sub-section (1), if the direction under clause (a) is
not complied with by the owner to whom such direction is issued, to
implement the direction in such manner as may be specified by the Court.
(4)
All expenses incurred by the Central Government, or as the case may
be, the person in implementing the directions of the Court under clause
(b) of sub-section (3), shall be recoverable from the owner as arrears
of land revenue or of public demand.
14.
Penalty for contravention of sub-section - (1) or sub-section
(2) of section 4 or failure to comply with directions under section
12 - (1) Whoever contravenes any of the provisions of (8)[sub-section
(1) of sub-section (2) or sub-section (2A)] or sub-section (2C) of section
4 or fails to comply with any direction issued under section 12, he
shall be punishable with imprisonment for a term which shall not be
less than one year and six months but which may extend to six years,
or with fine which shall not be less than one lakh rupees, or with both.
(2)
Whoever, having already convicted of an offence under sub-section (1),
is convicted for the second offence or any offence subsequent to the
second offence, he shall be punishable with imprisonment for a term
which shall not be less than two years but which may extend to seven
years and with fine which shall not be less than one lakh rupees.
(3)
Nothing contained in section 360 of the Code of Criminal Procedure,
1973 (2 of 1974), or in the Probation of Offenders Act, 1958 (20 of
1958), shall apply to a person convicted of an offence under this Act
unless such person is under eighteen years of age.
15.
Penalty for failure to comply with direction under section 9
or order under section 11 or obstructing any person in discharge of
his functions under section 10 or 11 - If any owner fails to
comply with direction issued under section 9 or fails to comply with
order issued under sub-section (2) of section 11, or obstructs any person
in discharge of his functions under section 10 or sub-section (1) or
sub-section (3) of section 11, he shall be punishable with imprisonment
which may extend to three months, or with fine which may extend to ten
thousand rupees, or with both.
16.
Offence by companies - (1) Where any offence under
this Act has been committed by a company, every person who, at the time
of the offence was committed, was directly in charge of, and was responsible
to, the company for the conduct of the business of the company, as well
as the company, shall be deemed to be guilty of the offence and shall
be liable to be proceeded against and punished accordingly:
Provided
that nothing contained in this sub-section shall render any such person
liable to any punishment provided in this Act, if he proves that the
offence was committed without his knowledge or that he exercised all
due diligence to prevent the commission of such offence.
(2)
Notwithstanding anything contained in sub-section (1), where an offence
under this Act has been committed by a company and it is proved that
the offence has been committed with the consent or connivance of, OR
is attributable to any neglect on the part of, any director, manager,
secretary or other officer of the company, such director, manager, secretary
or other officer shall also be deemed to be guilty of that offence and
shall be liable to be proceeded against and punished accordingly.
Explanation
- For the purposes of this section,
(a)
"company" means any body corporate and includes a firm or
other association of individuals;
(b)
"director", in relation to a firm, means a partner in the
firm.
17.
Offences by Government Departments - Where an offence
under this Act has been committed by any Department of Government, the
Head of the Department shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished accordingly:
Provided
that nothing contained in this section shall render such Head of the
Department liable to any punishment if he proves that the offence was
committed without his knowledge or that he exercised diligence to prevent
the commission of such offence.
18.
Cognizance of offences - No court shall take cognizance
of any offence under this Act except on a complainant made by -
(a)
the Central Government or any authority or officer authorised in this
behalf by that Government; or
(b)
any person who has given notice of not less than sixty days in the manner
prescribed, of the alleged offence and of his intention to make a complaint,
to the Central Government of the authority or officer authorised as
aforesaid.
19.
Power to delegate - The Central Government may, by
notification, delegate, subject to such conditions and limitations as
may be specified in the notification, such of its powers and functions
under this Act (except the power under section 23) as it may deem necessary
or expedient to any person (including any officer, authority or other
agency.)
20.
Protection of action taken in good faith - No suit,
prosecution or other legal proceeding shall lie against the Government
or the person, officer, authority or other agency in respect of anything
which is done or intended to be done in good faith in pursuance of this
Act or the rules made or orders or directions issued thereunder.
21.
Advisory committee - (1) The Central Government may,
from time to time, constitute an Advisory committee on the matters relating
to the insurance policy under this Act.
(2)
The Advisory Committee shall consist of -
(a)
three officers representing the Central Government;
(b)
two persons representing the insurers;
(c)
two persons representing the owners; and
(d)
two persons from amongst the experts of insurance of hazardous substances
to be appointed by the Central Government.
(3)
The Chairman of the Advisory Committee shall be one of the members representing
the Central Government, nominated in this behalf by that Government.
22.
Effect of other laws - The provisions of this Act and
any rules made thereunder shall have effect notwithstanding anything
inconsistent therewith contained in any other law.
23.
Power to make rules - (1) The Central Government may,
by notification, make rules for carrying out the purposes of this Act.
(2)
In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters
namely:
(9)[(a)
the maximum amount for which an insurance policy may be taken out by
an owner under sub-section (2A) of section 4;
(aa)
the amount required to be paid by every owner for being credited, to
the Relief Fund under sub-section (2C) of section 4;
(ab)
the manner in which and the period within which the amount received
from the owner is required to remitted by the insurer under sub-section
(2D) of section 4;]
(10)[(ac)
establishment and maintenance of fund under sub-section (3) of section
4;
(b)
the form of application and the particulars to be given therein and
the documents to accompany such application under sub-section 6;
(c)
the procedure for holding an inquiry under sub-section (4) of section
7;
(d)
the purposes for which the Collector shall have powers of a Civil Court
under sub-section (5) of section 7;
(e)
the manner in which notice of the offence and of the intention to make
a complaint to the Central Government shall be given under clause (b)
of section 18;
(f)
any other matter which is required to be, or may be, prescribed.
(3)
Every (11)[rule or scheme] made under
this Act shall be laid, as soon as may be after it is made, before each
House of Parliament, while it is in session for a total period of thirty
days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following
the session of successive sessions aforesaid, both Houses agree in making
any modification in the (12)[rule or
scheme] or both Houses agree that the 12[rule or scheme] should not
be made, the 12[rule or scheme] shall thereafter have effect only in
such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to
the validity of anything previously done under that rule.
The
Schedule
[See
Section 3(1)]
(i)
Reimbursement of medical expenses incurred upto a maximum of Rs. 12,500
in each case
(ii)
For fatal accidents the relief will be Rs. 25,000 per person in addition
to reimbursement of medical expenses, if any, incurred on the victim
upto 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 of Rs. 12,500 in each case and (b)
cash relief on the basis of percentage of disablement as certified by
an authorised physician. The relief for total permanent disability will
be Rs. 25,000.
(iv)
For loss of wages due to temporary partial disability which reduces
the earning capacity of the victim, there will be a fixed monthly relief
not exceeding Rs. 1000 per month upto a maximum of 3 months: provided
the victim has been hospitalised for a period exceeding 3 days and is
above 16 years of age.
(v)
Up to Rs. 6,000 depending on the actual damage, for any damage to private
property.
1.
Subs.
for clause (a)
2.
Subs. for clause (a) by Act No.11 of 1992, section 2(ii), (w.e.f.
31-1-1992)
3.
Ins. by Act No. 11 of 1992, section2(iii), (w.e.f. 31-1-1992)
4.
Ins. by Act No.11 of 1992 of 1992, section 3, (w.e.f. 31-1-1992).
5.
Subs. for sub-section (3) by Act 11 of 1992, section 4(a), (w.e.f.31-1-1992)
6.
Ins. by Act 11 of 1992, section 4(b), (w.e.f. 31-1-1992)
7.
Ins. by Act 11 of 1992, section 5, (w.e.f. 31-1-1992)
8.
Subs. for "sub-section (1) or sub-section (20 "by Act
11 of 1992, section 6, (w.e.f. 31-1-1992)
9.
Ins. by Act 11 of 1992, section 7(a)(ii), (w.e.f. 31-1-1992)
10.
Cl. (A) re-lettered as clause (act) by Act 11 of 1992, section 7(a)(i),
(w.e.f. 31-1-1992)
11.
Subs. for "rule " by Act 11 of 1992, section 7(b), (w.e.f.
31-1-1992)
12.
Subs. for "rule" by Act 11 of 1992, section 7(b), (w.e.f.
31-1-1992)