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PUBLIC LIABILITY INSURANCE ACT 1991 Q) Highlight the basic objective of Public liability Insurance act 1991 and elaborate the elaborate the important provision made under public liability insurance act? The main objective of the Public Liability Insurance Act 1991 is To provide for damages to victims of an accident this occurs as a result of handling any hazardous substance. The Act applies to all owners associated with the production or handling of any hazardous chemicals. The Public Liability Insurance act, 1991 is an Act to provide for public liability insurance for the purpose of extending immediate relief to the persons affected by accident occurring while handling any hazardous substance in a project, industry or storage and for matters connected therewith or incidental thereto. The broad provisions of this act are: 1. Owner of the project is to provide relief, as specified, in case of death, or injury to any person (other than workman); or damage to property from an accident occurring while handling specified hazardous substances, 2. Owner is to draw an insurance policies equal to the paid‐up capital of the undertaking, but less than or equal to Rs. 50 crores (max), before handling any hazardous substances. 3. “Paid‐up Capital” in case of an owner not being a company (may be proprietorship partnership firm) implies the market value of all assets and stocks of the undertaking or the date of insurance. 4. Owner is to pay additional amounts, as prescribed, to the insurer not exceeding the amount of premium, as contribution to the Environmental Relief Fund established under the Act. 5. Owner is to pay the amount of an award as specified by the Collector in the prescribed manner 6. Owner is to comply with the directions under the Act issued in writing by the Central Government, within the specified time, as mentioned in the order. The directions may include:   Prohibition or regulation of handling of any hazardous substances; or  Stoppage or regulation of the supply of electricity, water or any other service. The above Act of Parliament received the assent of the President on the 22nd January, 1991. The act has 23 sections. 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. Definition

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