The workers who are handling hazardous substances and likely to fall victims of

accidents. The employees used to escape their liability on the grounds of

assumed risk or contributory negligence brought legislation to protect the
workers for their safety in hazardous occupation. One of the ways to protect
workers is through providing Insurance to them. The employer has also to share
the burden in this. Very often, the majority of the people affected are from the
economically weaker sections & suffer great hardships because of delayed relief
& compensation. While workers and employees of hazardous installations are
protected under separate laws, members of the public are not assured of any
relief except through long legal processes. Industrial units seldom have the
willingness to readily compensate the victims of accidents & the only remedy
now available for the victims is to go through prolonged litigation in the court of
law. It is, therefore, essential to provide for Mandatory Public Liability Insurance
for installations handling hazardous substances to provide minimum relief to the
victims. Such Insurance, apart from safe guarding the interests of the victims of
accidents would also provide cover & enable the industry to discharge its liability
to settle large claims arising out of major accidents. If the objective of providing
immediate relief is to be achieved, the mandatory public liability Insurance
should be on the principle of no fault liability as it is limited to only relief on a
limited scale. However, availability of immediate relief would not prevent the
victims to go to courts for claiming higher compensation. An Act to provide for
public liability insurance for the purpose of providing immediate relief to the
persons effected by accident occurring while handling any hazardous substance
and for matters connected therewith or incidental thereto, was introduced in
1991. The Act gives relief on the principle of No Fault. 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 following relief for such death,
injury or damage.DIPLOMA IN INSURANCE SERVICES MODULE - 5 Notes Public
Liability Insurance Act 1991... Legal Framework 62 (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 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, upto 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. 1,000/-per month up to 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) Upto Rs. 6,000 depending on
the actual damage, for any damage to private property.

PUBLIC LIABILITY INSURANCE (ACT) POLICYPublic Liability insurance covers you

against any claims made against yourbusiness for example if you were held legally
liable for personal injury, orfor damage done to property. The insurance will also cover
you for any legalcosts associated with defending claims against your business.Even if
you work from home it may be that you need Public Liabilityinsurance. If clients often visit
you at your home office then this policy willcover you if they injure themselves while
theyre on your premises (it couldbe something as daft as tripping over the carpet!). And
dont forget if youregularly work off-site your policy should apply to off-site as well as onsitejobs.The premiums will depend on the type of business, your turnover and thenumber
of employees. The problem is working out what level of protectionyou think you need. The
key is not to underestimate Rs.1 crore may soundlike a lot of cover, but if you find
yourself facing a series of claims from agroup of people the legal fees will be large.Its
also vital to keep your Public Liability policy up-to-date to reflect anychanging
circumstances in your business. As your business expands yourelikely to find your risks
grow too.
29. Evaluation of Public Liability Insurance Owning your own business has its
responsibilities as well as its rewards. One of these is to ensure that the public doesnt
suffer from your activities. In an imperfect world however things do go wrong so it makes
sense to protect your interests from expensive legal claims from members of the public
that could seriously damage your cash flow. This type of financial protection is called
public liability insurance. Depending on the type of business you are operating, public
liability insurance can be compulsory. It can often be included in other insurance
packages. Properly drawn up Public Liability Insurance covers you for your legal
responsibility for Injury, caused by the operations of your business Illness or disease to
any member of the public loss and damage to a member of the publics property pollution claims etc. Public Liability Insurance (Act) 1991: Object of act To provide for
public liability insurance for the purpose of providing immediate relief to persons affected
by accident occurring while handling any hazardous substances. Policy for Whom Any
person or business handling hazardous substances.
30. Handling Manufacture, processing, treatment, packaging, storage, transportation,
Use, Collection, Destruction, Conversion, Offering for sale, Transfer or like. Hazardous
Substance Substance defined in EPA 1986 exceeding threshold quantity.
Compensations payable Medical Expenses: Rs 12,500/- Death: Rs 25,000/-
Property: Rs 6000/- PTD,PPD: % of disability X Rs 25,000/- TPD: Rs 1000/- pm, Max:
3 months. Features Indemnifying the Insured against the statutory liability arising
out of accidents occurring due to handling hazardous substances as provided in the PLI
Act. Maximum Indemnity available is AOA:5 Crores and AOY:15 Crores. Rating
depends on turnover and limit of indemnity. 100% contribution to Environment Relief
Fund.
31. Key points: Finding providers is no great problem as there are literally hundreds.
Naturally you should look to use a company that has experience in your particular line of

business and who will appreciate the challenges and risk your business faces. However
the fact that you have public liability insurance does not relieve you from the responsibility
of taking due care in your business operations. You are still obliged to live up to your legal
responsibilities. The key challenge of this type of insurance is gauging how much you
think you will need. Obviously you will have to judge on the basis of what you think your
risk is, but do not underestimate. One million pounds might seem like a lot of cover, but if
you find yourself facing a series of claims from a group of people then the legal fees
alone could cost you a fortune.