Public Liability(Act)

 The Public Liability Act 1991 is

“An act to provide for public liability insurance for the purpose of providing immediate relief to persons affected by accident occurring while handling any hazardous substance and for matters connected therewith or incidental there to”

If Your Company is into handling of hazardous goods, it is compulsory to be insured under the Public Liability Act Insurance. A list of HAZARDOUS GOODS has been given in the act along with quantities over which if these goods are handled; then the Act states that PLI Act must be taken.

  • The Minimum compensation under the act is as follows
  • The limits of compensation payable are defined in the Act as Rs. 12,500

Maximum for Medical expenses per person

  • 25,000 Maximum for Fatal accident in addition to medical expenses
  • 25,500/- for permanent total or permanent partial or other injury or Sickness
  • 1000 per month upto maximum of 3 months for loss of wages due to temporary partial disability provided the victim has been hospitalized for a period exceeding 3 days and is above 16 yrs of age
  • Upto Rs. 6000 depending upon actual damage for damage to third party property.