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Contents PUBLIC LIABILITY INSURANCE ACT, 1991 PAGE
1. Short title and commencement
1
2. Definitions
1
3. Liability to give relief in certain cases on principle of no fault
3
4. Duty of owner to take out insurance policies
5
5. Verification and publication of accident by Collector
7
6. Application for claim for relief
7
7. Award of relief
9
7A. Establishment of Environmental Relief Fund 8. Provisions as to other right to claim compensation for death, etc.
10 11
9. Power to call for information
11
10. Power of entry and inspection
11
11. Power of search and seizure
11
12. Power to give directions
12
13. Power to make application to Courts for restraining owner from handling hazardous substances
12
14. Penalty for contravention
13
15. Penalty for non-compliance of directions
14
15A. Adjudicating officer
15
15B. Appeal
15
16. [Omitted by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024]
I-5
16
CONTENTS
I-6 PAGE
17. Penalty for contravention by Government Department
16
17A. Penalty amount to be credited to Environmental Relief Fund
17
17B Offence for failure to pay penalty or additional penalty
18
18. Cognizance of offences
19
19. Power to delegate
19
20. Protection of action taken in good faith
20
21. Advisory Committee
20
22. Effect of other laws
21
23. Power to make rules
21
SCHEDULE
22
SUBJECT INDEX
23
PUBLIC LIABILITY INSURANCE RULES, 1991 1. Short title and commencement
25
2. Definitions
25
3. Application for claim for relief or restoration of property
26
3A. Allocation of funds from Environmental Relief Fund for restoration of environmental damage
26
4. Documents that may be required 5. Powers of Collector 5A. Publication of right to claim for relief by the Industrial unit
26 27 27
6. Establishment and administration of fund
27
7. Miscellaneous
28
8. Directions
28
9. Manner of giving notice
29
10. Extent of liability
30
11. Contribution of owner to the Environmental Relief Fund
31
12. Complaint
31
13. Manner of Holding Inquiry
31
14. Transfer of complaint
32
15. Extension of time
32
16. Order and penalties
33
FIRST SCHEDULE
33
SECOND SCHEDULE
38
SAMPLE CHAPTER
Public Liability Insurance Act, 1991 [6 OF 1991]1 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: — Short title and commencement. 1. (1) This Act may be called the Public Liability Insurance Act, 1991. (2) It shall come into force on such date2 as the Central Government may, by notification, appoint. Definitions. 2. In this Act, unless the context otherwise requires,— 3
[(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,
1. Dated 22-1-1991. 2. With effect from 1-4-1991, vide G.S.R. 253, dated 27-3-1991. 3. Substituted by the Public Liability Insurance (Amendment) Act, 1992, w.r.e.f. 31-1-1992. Prior to its substitution, clause (a) read as under; ‘(a) “accident” means an accident or incident occurring while handling any hazardous substance;’
1
S. 2
PUBLIC LIABILITY INSURANCE ACT, 1991
2
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; 4
[(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;
[(ha) “property” includes any private property or public property affected or damaged by any unit or undertaking, due to manufacture, processing, treatment, package, storage transportation, use, collection destruction, conversion, transfer or such other processes of hazardous substance;]
5
[ [(hb)] “Relief Fund” means the Environmental Relief Fund established under section 7A;]
6 7
(i) “rules” means rules made under this Act; (j) “vehicle” means any mode of surface transport other than railways. 5
[(k) words and expressions used and not defined in this Act but defined in the Transfer of Property Act, 1882 (4 of 1882), and the Environment (Protection) Act 1986 (29 of 1986), shall have the meanings respectively assigned to them in those Acts.] COMMENTS
SECTION NOTES
2.1 Definition of “Accident” [Section 2(a)] An accident involving a fortuitous, sudden, or unintended occurrence while handling
any hazardous substance. Results of Occurrence: Continuous, intermittent, or repeated exposure leading to: z Death of any person.
4. Substituted by the Public Liability Insurance (Amendment) Act, 1992, w.r.e.f. 31-1-1992. Prior to its substitution, clause (g) read as under: ‘(g) “owner” means a person who has control over handling any hazardous substance;’ 5. Inserted by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024. 6. Inserted by the Public Liability Insurance (Amendment) Act, 1992, w.r.e.f. 31-1-1992. 7. Renumbered as clause (hb) by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024.
3
PUBLIC LIABILITY INSURANCE ACT, 1991
S. 3
z Injury to any person. z Damage to any property. Exclusions: Does not include an accident solely due to: z War. z Radio-activity.
2.2 Definition of “Owner” [Section 2(g)] A person who at the time of an accident: Owns any hazardous substance. Has control over handling any hazardous substance. Inclusions for specific entities: In the case of a firm: z Any of its partners. In the case of an association: z Any of its members. In the case of a company: z Any of its directors. z Any of its managers. z Any of its secretaries. z Any other officers who are: Directly in charge of the company for the conduct of its business. Responsible to the company for the conduct of its business.
Liability to give relief in certain cases on principle of no fault. 3. 8[(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 reimburse such amount, or provide such other relief as may be prescribed, for— (a) death due to fatal accident; (b) medical expenses incurred due to total or partial disability; (c) loss of wages due to partial disability; (d) other injury or sickness; (e) damage to private property; or (f) such other loss or damage, as may be prescribed.] (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 8. Substituted by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024. Prior to its substitution, sub-section (1), read as under: “(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.”
PUBLIC LIABILITY INSURANCE ACT 1991 WITH PUBLIC LIABILITY INSURANCE RULES 1991 – BARE ACT WITH SECTION NOTES AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :
Taxmann's Editorial Board Taxmann December 2025 2026 Edition 9789371264464 44 Paperback
Rs. 85 DESCRIPTION Public Liability Insurance Act 1991 with Public Liability Insurance Rules 1991 [Bare Act with Section Notes] by Taxmann is a concise and authoritative statutory reference consolidating India's core legislation on public liability insurance and no-fault compensation for accidents involving hazardous substances. The Act is a vital part of India's environmental and industrial liability regime, mandating compulsory insurance and ensuring prompt relief to victims without requiring proof of negligence. The 2026 Edition presents the fully updated text of the Public Liability Insurance Act 1991 and the Public Liability Insurance Rules 1991, incorporating all amendments in force, including those introduced by the Jan Vishwas (Amendment of Provisions) Act 2023. It also covers the statutory framework governing the Environmental Relief Fund, supporting swift compensation and environmental restoration. This book is intended for the following audience: • Legal Professionals & Litigators • Judicial & Quasi-Judicial Authorities • Regulatory Authorities & Enforcement Officers • Industrial, Manufacturing & Infrastructure Enterprises • Environmental Consultants & Policy Makers • Academicians, Researchers & Students The Present Publication is the 2026 Edition, covering the amended and updated text of the Public Liability Insurance Act [Act No. 6 of 1991] and Rules, with the following noteworthy features: • [Complete & Updated Text] Incorporates all amendments in force • [Section-wise Notes] Brief explanatory notes clarifying scope and application • [Pre-amendment Provisions] Amendment footnotes showing the earlier legal position • [Case Law References] Select judicial decisions on liability, insurance, and compensation • [Rules Included] Full text of the Public Liability Insurance Rules 1991 with amendments • [User-friendly Structure] Clear layout with headings and a detailed subject index
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