GENERAL KNOWLEDGE

Detailed explanation-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.

Detailed explanation-2: -Public Liability Insurance Act, 1991 is to provide the compensation for damages to victims of an accident of handling any hazardous substance or, it is also calls, to save the owner of production/storage of hazardous substance from hefty penalties. This is done by proving compulsory insurance for third party liability.

Detailed explanation-3: -1991. Section 3 of the Act incorporates the principle of “Absolute Liability” or payment of compensation on “No-Fault Basis". The Owner is liable to pay compensation to the Claimant for Death, Damage, or Injury. The amount of compensation required to be paid by the Owner is specified in Schedule of the Act.