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Public Liability Act Insurance

Premium Starts @ 714

(Excluding Taxes)

Premium Starts @ 714 excluding Taxes
Benefits
Covers hazardous substances
Covers damage to public property
Covers legal fees
Claim period of 5 years
Our Most Trusted Insurer
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assistance2Instant risk confirmation
assistance3Experienced medico-legal panel
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assistance5Renewal reminders
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Public Liability Act Insurance

Get quote if you agree to our Terms of Use and Privacy Policy

SecureNow Assistance

assistance1

Online policy copy

Policy copy will be emailed. This can also be accessed via securenow.app login

assistance2

Instant risk confirmation

Risk coverage gets started immediately on proposal form submission, if no claim has been reported.

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Experienced medico-legal panel

High quality lawyers, with experience of medical negligence cases, take-up cases on Doctor’ behalf

assistance

Single point interface for claims

Dedicated liability claims expert coordinates claims between the Doctor, lawyer and the insurer

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Timely renewal reminders

Automated reminders and sent 3 weeks before renewal. Premium can be easily paid online

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Digital proposal form and payment

Buying process is completely digitized including supporting documents. No need to submit hard copies.

Quick Guide to Public Liability Act Insurance

Public Liability Insurance Act 1991

The Public Liability Insurance act is enacted to provide for all owners involved in the production & handling of hazardous substances, a sense of financial security. It was introduced to provide direct assistance to the victims (other than workers) affected by the accidents occurring while handling of hazardous substances by the insurance amount paid by the owners.


The bare act defines "Handling" in relation to any hazardous substance as the manufacture, processing, treatment, packaging, storing, transportation, collection, destruction, conversion, offering for sale, transfer, or the like of such hazardous substance.

Importance of Public Liability Insurance Act 1991

Public liability insurance act 1991 is a mandatory liability policy for owners involved in the production & handling of hazardous substances, wherein immediate relief is provided to the victims other than workers. It came into effect mainly due to Union Carbide incident (popularly known as Bhopal gas tragedy) of 1984. Such incidences are unpredictable & unavoidable due to which this Policy came into effect.

Salient features of Public Liability Act Insurance 1991

  • Fixed settlements amount will be provided to the claimants irrespective of the sum insured like:
    1. Rs. 25000 in case of death & permanent disability of the third person
    2. Rs. 12500 will be paid for medical expenses.
    3. Rs. 6000 will be paid for property damages of the concerned person.
    4. Rs. 1000 per month, up to 3 months as fixed monthly relief will be provided in case of loss of wages due to temporary partial disability.
  • No Fault Liability - In any claim for relief, the claimant shall not be required to plead and establish that the death, injury or damage in respect of which the claim has been made was due to any wrongful act or negligence of any person.
  • Client need not to pay any amount at the time of claim as deductible is Nil.

Inclusion cases under the Public Liability Insurance Act

Inclusion under the Public Liability Insurance Act are noted below:

  • Injuries caused due to handling of hazardous goods in any way.
  • Death or disabilities of the victims.
  • This Act covers all locations within India.
  • After issuance of the policy, insurer can cancel the policy within 30 days & premium will be refunded after some deductions (pro rata basis).

Exclusions not covered by PLI Act of 1991

Exclusions under the Public Liability Insurance Act are noted below:

  • Any amount claimed after 5 years from the date of occurrence of accident should not be entertained.
  • Matters outside of the scope of Public Liability Insurance Act, 1991 are excluded.
  • Intentional non-compliance with the statutory requirements of the Act.

Claim filing process under PLI Act

Steps for filling a claim under Public Liability Act claim are described below:

  • As soon as there is an injury, death or partial disability or the Property damage of the person other than the workman, the Insured (owner) should inform the same to the insurer.
  • All the medical certificates & the documents are required to be submitted with the Collector along with the Public Liability Act claim form.
  • The Collector after receiving the claim form, will give both the parties i.e., Insured & affected party an opportunity to be heard basis which the amount of the reward is finalised by him.
  • After finalisation of the amount, the insurer will release the amount within 30 days.
  • The Collector can also arrange the award from the relief fund in accordance with the scheme made under section 7A.

What are the documents required to file claim under Public Liability Insurance Act?

Below is the list of documents required for filing a claim under Public Liability Act insurance:

  • Duly filled claim form along with the requisite documents
  • Medical certificates in case of an injury or death
  • Copies of evidence and proofs mentioned above

Public Liability Insurance Act FAQs

Public Liability Insurance Act 1991 Policy (PLI Act) is a mandatory liability policy for owners involved in the production & handling of hazardous substances. Under the policy immediate relief is provided to the victims other than workers. It came into effect due to The Union Carbide incident (infamously known as Bhopal gas tragedy) of 1984. Such incidences are unpredictable & unavoidable due to which this policy came into effect.
Any owner of the factories, manufacturing units, storage etc. who deals in the hazardous goods are required mandatory to have the public liability policy in order to protect themselves from uncertain events such as Bhopal gas tragedy, Vizag gas leak risks cases.
As per the Bare Act all owners involved in the production & handling of hazardous substances are mandatory required to take Public Liability Insurance Act 1991. All the policy wording of the Public Liability Insurance Act 1991 and amendments, must be followed by concerned businesses in the letter and spirit of the Act.
The Bharat Laghu Udyam Suraksha offers 2 standard riders/ add-ons:
  • Floater Cover, which covers multiple locations under one sum insured
  • Declaration Policy for Stocks, which covers the fluctuations in stocks.
  • Yes, the Public Liability Act policy is governed according to the Public Liability Act 1991, so all the rules which the Act need to be obeyed under the policy as well.
    When one deals in hazardous substances i.e., manage the production, storage, packaging, transportation etc. Substantial amount of risk is associated with the harmful products. Third person can have the injury or property damage while dealing with such situations. In order to protect owners from the legal aspects and to avoid financial liability to pay compensation to affected person, one needs to take this policy, as mandated by PLI Act 1991.
    In India, Ministry of Environment and Forests has cisrculated a list of chemicals with their qualtitties for Public Liability insurance Act. Therefore, It is valuable for the businesses who are dealing in the hazardous substances as per below group:
  • Toxic Substances (124 substances)
  • Highly Reactive Substances(24 substances)
  • Explosives substances (30 substances)
  • Flammable substances (Gases/Liquids)
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