PUBLIC LIABILITY INSURANCE ACT, 1991: A CRITICAL STUDY

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PUBLIC LIABILITY INSURANCE ACT, 1991: A CRITICAL STUDY The Public Liability Insurance Act of 1991 deals with hazardous substances; each owner must conclude one or more contracts which include the obligation to provide direct compensation. It should be provided to all those who have suffered damages that should be given to the property of the deceased legal heir in the event of their death. The 1991 Public Liability Act was ordained to provide direct assistance to people affected by accidents related to handling hazardous materials and other coerced and related matters. Coverage insurance is claimed when someone is injured at the place of business. Places like shopping centers, night clubs, and theatres need this type of insurance to protect them. The Public Liability Insurance Act 1991 applies to all owners associated with the production or handling of any hazardous chemicals, to provide immediate relief to victims and persons (other than workmen) affected by accidents occurring while handling hazardous substances through the insurance amount paid by the owner of the hazardous substance. Coverage insurance covers claims by community members who have suffered injury or property damage in connection with the business. Coverage insurance covers a person or company in the event of an accident at their company. A major reason for the enactment of this law Bhopal Gas Tragedy Union Carbide Corporation vs. Union of India Etc on 4 May 1989 It is also known as the Bhopal disaster, in which thousands of people lost their lives. This is considered the worst industrial disaster in the world that happened on a cold winter night in the early hours of December 3, 1984. Around midnight, a chemical reaction began at the Union Carbide (India) Limited plant, which resulted in the release of a deadly gas methyl isocyanine (MIC) from one of the tanks. As a result, the gas cloud gradually tumbled enveloping the city within its deadly folds. Both the city and the lake had become a gas chamber. Nearly 3,000 people died in the tragedy, and thousands more were physically injured and affected in various forms. Wildlife was killed, injured, and contaminated. The business was totally cut off. People’s lives were affected. The environment was polluted disturbed ecology and wildlife. An estimated 40 tons of methyl isocyanine (MIC) gas leaked from the Union Carbide Factory. Lessons learned from the Bhopal gas tragedy were quickly forgotten. The Public Liability Insurance Act 1991 came into force after the tragedy and aims to provide immediate assistance to victims of accidents involving hazardous industries. However, activists argue that legal provisions are not enforced by collectors appointed as law enforcement agencies. According to Section 4 of the law, owners of companies that use hazardous substances take out insurance policies to cover liabilities from accidents that cause death, injury, or injury. In addition, Section 7a, i) and (ii) regulate the establishment of a central government environmental promotion fund to be used in accordance with the law to pay assistance to accident victims in dangerous companies. The law also regulates business owners to take insurance policies that cover obligations not less than the paid-up capital of the business and not more than Rs 50 crore. In Bhopal leak gas case MIC leaked from the plant of union carbide India Ltd, which caused the death of 3000 persons and serious injuries to a large number of people. The government of India responded with a number of concrete legislative measures:- 1. Environment Protection Act, 1986– this expands the central government powers to enter, inspects, and closes down facilities that are formerly under inadequate supervision. 2. The Factories Act, 1987, and the Hazardous Wastes Act, 1989 imposed various responsibilities on industries. 3. The innovative public liability insurance act 1991: this required factory owners to ensure against potential personal injury and property damage in surrounding communities. PUBLIC LIABILITY INSURANCE ACT, 1991: A CRITICAL STUDY The Public Liability Insurance Act of 1991 deals with hazardous substances; each owner must conclude one or more contracts which include the obligation to provide direct compensation. It should be provided to all those who have suffered damages that should be given to the property of the deceased legal heir in the event of their death. The 1991 Public Liability Act was ordained to provide direct assistance to people affected by accidents related to handling hazardous materials and other coerced and related matters. Coverage insurance is claimed when someone is injured at the place of business. Places like shopping centers, night clubs, and theatres need this type of insurance to protect them. The Public Liability Insurance Act 1991 applies to all owners associated with the production or handling of any hazardous chemicals, to provide immediate relief to victims and persons (other than workmen) affected by accidents occurring while handling hazardous substances through the insurance amount paid by the owner of the hazardous substance. Coverage insurance covers claims by community members who have suffered injury or property damage in connection with the business. Coverage insurance covers a person or company in the event of an accident at their company. A major reason for the enactment of this law Bhopal Gas Tragedy Union Carbide Corporation vs. Union of India Etc on 4 May 1989 It is also known as the Bhopal disaster, in which thousands of people lost their lives. This is considered the worst industrial disaster in the world that happened on a cold winter night in the early hours of December 3, 1984. Around midnight, a chemical reaction began at the Union Carbide (India) Limited plant, which resulted in the release of a deadly gas methyl isocyanine (MIC) from one of the tanks. As a result, the gas cloud gradually tumbled enveloping the city within its deadly folds. Both the city and the lake had become a gas chamber. Nearly 3,000 people died in the tragedy, and thousands more were physically injured and affected in various forms. Wildlife was killed, injured, and contaminated. The business was totally cut off. People’s lives were affected. The environment was polluted disturbed ecology and wildlife. An estimated 40 tons of methyl isocyanine (MIC) gas leaked from the Union Carbide Factory. Lessons learned from the Bhopal gas tragedy were quickly forgotten. The Public Liability Insurance Act 1991 came into force after the tragedy and aims to provide immediate assistance to victims of accidents involving hazardous industries. However, activists argue that legal provisions are not enforced by collectors appointed as law enforcement agencies. According to Section 4 of the law, owners of companies that use hazardous substances take out insurance policies to cover liabilities from accidents that cause death, injury, or injury. In addition, Section 7a, i) and (ii) regulate the establishment of a central government environmental promotion fund to be used in accordance with the law to pay assistance to accident victims in dangerous companies. The law also regulates business owners to take insurance policies that cover obligations not less than the paid-up capital of the business and not more than Rs 50 crore. In Bhopal leak gas case MIC leaked from the plant of union carbide India Ltd, which caused the death of 3000 persons and serious injuries to a large number of people. The government of India responded with a number of concrete legislative measures:- 1. Environment Protection Act, 1986– this expands the central government powers to enter, inspects, and closes down facilities that are formerly under inadequate supervision. 2. The Factories Act, 1987, and the Hazardous Wastes Act, 1989 imposed various responsibilities on industries. 3. The innovative public liability insurance act 1991: this required factory owners to ensure against potential personal injury and property damage in surrounding communities. Vizag Gas Leak: LG Polymers IG polymers vs. Appcb Gas Leak at LG Polymers Chemical Plant in RR Venkatapuram Village Visakhapatnam in Andhra Pradesh Another disaster-affected people in the Gopalapatnam region in Visakhapatnam, Andhra Pradesh On the eerie night of May 6, 2020, respiratory problems occurred, and nearly 13 people were reported to have died in a very short period of time, and thousands were hospitalized with serious complications on May 7. The leak was discovered from LG Polymers India Limited. This produces polystyrene, a type of plastic used in consumer goods such as toys and household appliances. The gas that comes out is called styrene. This gas is stored at cold temperatures. This resulted in a chemical reaction and heat being released in the tank, causing gas to come out. Inhaling air contaminated by this deadly gas caused respiratory problems, central nervous system depression, and several other deadly diseases. The Prime Minister took cognizance of the accident and the NDRF special team (National Chemical Disaster Management Force) for the CBRN (chemicals, biology, radiology and nuclear) was moved by the scene of the accident. The Andhra Pradesh High Court, the National Human Rights Commission, and the Apex court took sue moto cognizance about the case and sent communications to the central and state governments to investigate the incident. According to the Public Liability Insurance Act, company owners must take out an insurance policy with hazardous substances within one year after starting work. LG Polymers has two policies-one that is the Public Liability Act policy which is mandatory according to the Act-AOA (Any One Accident) of Rs 5 crore, and also has an industrial PLI policy limited to 5 crore – both are from New India Assurance. An AOA of Rs 5 crore means that the company will be liable to pay up to Rs 5 crore (in total, for all victims) per accident. Also, the central government can establish an environmental support fund to provide legal assistance to accident victims in dangerous companies The NGT issued the orders under Sections 14 and 15 of the NGT Act, 2010. The NGT smacked a provisional detriment of Rs 50 crore on LG Polymers India and pursued a response from the centre on Friday in the gas leak incident. Andhra Pradesh, saying “there seems to be a fault in fulfilling the old Rules and other statutory provisions”

Objectives of the Public Liability Insurance Act This law provides liability insurance for the purpose of immediate assistance to those affected by the accident. While handling hazardous substances and related matters that can cause an error Legal consequence are produced by law because it is not an adequate Announcement of the provisions of Section 3 of the law. The growth of dangerous industries affects everyone either directly or indirectly. Such accidents result in death and injury to people and other living things and damage personal and public property. Very often, most of those affected come from economically weaker regions and suffer great hardship due to late release and compensation. While employees of hazardous facilities are protected the community is not guaranteed assistance, except through lengthy legal procedures. Industrial facilities are rarely willing to easily compensate victims of accidents, and the only way now available to victims is to bring prolonged litigation to court. Some units may not have the funds to provide the slightest assistance. The relief provided under this act Compensation for liability in certain cases without error

As in Section 3 If the death or injury of another person (other than a worker) or property damage due to an accident has occurred, the owner is obliged to provide the assistance listed on the list for the death, injury, or damage.

1. In a claim for compensation under Section 1 (hereinafter referred to as this law as compensation), the plaintiff does not need to declare and prove that the death, injury, or damage on which the claim was based on an action, neglecting or not showing one’s performance. Explanation: For the purposes of this; 1. “Employee” has the meaning assigned to it in the Employee Compensation Act of 1923. 2. “Injury” includes a permanent or total permanent disability or partial illness resulting from an accident.

Vizag Gas Leak: LG Polymers IG polymers vs. Appcb Gas Leak at LG Polymers Chemical Plant in RR Venkatapuram Village Visakhapatnam in Andhra Pradesh Another disaster-affected people in the Gopalapatnam region in Visakhapatnam, Andhra Pradesh On the eerie night of May 6, 2020, respiratory problems occurred, and nearly 13 people were reported to have died in a very short period of time, and thousands were hospitalized with serious complications on May 7. The leak was discovered from LG Polymers India Limited. This produces polystyrene, a type of plastic used in consumer goods such as toys and household appliances. The gas that comes out is called styrene. This gas is stored at cold temperatures. This resulted in a chemical reaction and heat being released in the tank, causing gas to come out. Inhaling air contaminated by this deadly gas caused respiratory problems, central nervous system depression, and several other deadly diseases. The Prime Minister took cognizance of the accident and the NDRF special team (National Chemical Disaster Management Force) for the CBRN (chemicals, biology, radiology and nuclear) was moved by the scene of the accident. The Andhra Pradesh High Court, the National Human Rights Commission, and the Apex court took sue moto cognizance about the case and sent communications to the central and state governments to investigate the incident. According to the Public Liability Insurance Act, company owners must take out an insurance policy with hazardous substances within one year after starting work. LG Polymers has two policies-one that is the Public Liability Act policy which is mandatory according to the Act-AOA (Any One Accident) of Rs 5 crore, and also has an industrial PLI policy limited to 5 crore – both are from New India Assurance. An AOA of Rs 5 crore means that the company will be liable to pay up to Rs 5 crore (in total, for all victims) per accident. Also, the central government can establish an environmental support fund to provide legal assistance to accident victims in dangerous companies The NGT issued the orders under Sections 14 and 15 of the NGT Act, 2010. The NGT smacked a provisional detriment of Rs 50 crore on LG Polymers India and pursued a response from the centre on Friday in the gas leak incident. Andhra Pradesh, saying “there seems to be a fault in fulfilling the old Rules and other statutory provisions”

Objectives of the Public Liability Insurance Act This law provides liability insurance for the purpose of immediate assistance to those affected by the accident. While handling hazardous substances and related matters that can cause an error Legal consequence are produced by law because it is not an adequate Announcement of the provisions of Section 3 of the law. The growth of dangerous industries affects everyone either directly or indirectly. Such accidents result in death and injury to people and other living things and damage personal and public property. Very often, most of those affected come from economically weaker regions and suffer great hardship due to late release and compensation. While employees of hazardous facilities are protected the community is not guaranteed assistance, except through lengthy legal procedures. Industrial facilities are rarely willing to easily compensate victims of accidents, and the only way now available to victims is to bring prolonged litigation to court. Some units may not have the funds to provide the slightest assistance. The relief provided under this act Compensation for liability in certain cases without error

As in Section 3 If the death or injury of another person (other than a worker) or property damage due to an accident has occurred, the owner is obliged to provide the assistance listed on the list for the death, injury, or damage.

1. In a claim for compensation under Section 1 (hereinafter referred to as this law as compensation), the plaintiff does not need to declare and prove that the death, injury, or damage on which the claim was based on an action, neglecting or not showing one’s performance. Explanation: For the purposes of this; 1. “Employee” has the meaning assigned to it in the Employee Compensation Act of 1923. 2. “Injury” includes a permanent or total permanent disability or partial illness resulting from an accident.