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PUBLIC LIABILTIY ACT INSURANCE 1991

PL Act policy gives immediate relief to the persons affected by Accident occurring while handling of hazardous substance as provided in the Public Liability Insurance Act 1991 and the rules framed thereunder.

HIGHLIGHTS OF POLICY :
• Mandatory Policy for entities handling hazardous substances
• The policy Sum Insured should be equal to at least the Paid-Up-Capital of the firm
• The maximum AOA:AOY= INR 5 crores: INR 15 crores
• Ratio of AOA:AOY=1:3
• Territory: India; Jurisdiction: India
• The maximum AOA:AOY= INR 5 crores : INR 15 crores
• Environment Relief Fund: An equal contribution as much as the premium is made to this fund. Any award for relief which exceeds the amount payable under the insurance policy shall be met from the relief fund.
• This is Occurrence based policy. Any application for relief should be made within 5 years of the occurrence of the accident

WHO SHOULD BUY

The Public Liability Insurance ACT 1991 Section-4 mandates the duty of the owner of the establishment that deals with or handles hazardous substances to take or buy insurance policies. He must buy one or more insurance policies within one year from the commencement of the business. Further such insurance policy must be renewed from time to time.

KEY EXCLUSIONS

• The willful or intentional non-compliance with any statutory provisions
• Fines, penalties, punitive and/or exemplary damages
• War, invasions, acts of foreign enemies & terrorist War, terrorist activities etc.
• Damage to the property owned, leased or hired by the Insured Owner or under hire purchase or on loan to the insured owner or in the insured owner’s custody, care or control.