The Public Liability Insurance Act of 1991 in India imposes absolute liability on industries that handle hazardous substances or engage in dangerous activities. Let’s understand what absolute liability is in detail through this blog.
Public Liability Insurance Act 1991
“The Act was enacted to address the issue of industries that handled hazardous substances and engaged in dangerous activities, posing a significant risk to the public. These industries are required to obtain public liability insurance coverage to protect against legal liabilities arising from accidents or injuries to members of the public. Furthermore, it sets up a framework for compensating victims of accidents caused by hazardous substances.
What is Absolute Liability?
Absolute liability is a legal concept that holds a party responsible for damages or harm caused, regardless of whether or not they were negligent or at fault for the incident. In other words, absolute liability imposes strict liability on a person for any criminal actions, regardless of whether they intended to cause harm or acted with due care.
Typically, authorities apply this type of liability in cases involving dangerous or hazardous activities, such as using explosives or toxic chemicals. In such cases, the risks and potential harm are so great that the law imposes strict liability on those engaged in such activities, regardless of whether they were negligent or not.
The purpose of absolute liability is to ensure that those engaging in inherently dangerous activities take all necessary precautions to prevent harm and to provide compensation to those who suffer harm as a result of such activities.
Essential Conditions of Absolute Liability in Public Liability Insurance Act
- The hazardous substance should be dangerous where it should be harmful and cause injuries and damage. In other words, there should be use of hazardous substances such as poisonous gases, fumes, pollutants, water reservoirs, in accident.
- The substance should escape so that it causes damage to the victim, which gives rise to absolute liability.
- When a hazardous substance escapes and causes some sort of damage.
What are Exceptions to Absolute Liability in Public Liability Insurance Act?
First exception
It is the “Act of God” defense. This defense applies in cases where the harm or damage caused was due to a natural disaster or event that was beyond the control of the industry. For example, If an earthquake damages a chemical plant and releases hazardous materials into the environment. The industry may not absolutely hold liability for the harm caused.
Second exception
It is the “victim’s own negligence” defense. This defense applies in cases where the victim’s own negligence contributed to the harm or damage caused. For example, if person enters hazardous area without proper safety equipment or disregards safety warnings, and suffers harm as result. The industry may not absolutely hold liability for the harm caused.
Third exception
It is the “sabotage or terrorism” defense. This applies in cases where the harm or damage caused due to an intentional act of sabotage or terrorism. For example, if terrorist group deliberately causes an explosion at chemical plant, and hazardous materials are released into the environment. The industry may not bear absolute liability for the resulting harm or damage it has caused.”
In conclusion, the Public Liability Insurance Act of 1991 in India compels hazardous substance-managing industries to prioritize safety measures. The imposition of absolute liability provides a strong incentive for these industries to prioritize safety measures . It also implement best practices to prevent accidents from occurring. To know more about this insurance act and absolute liability, get in touch with the team of experts- SecureNow.
About The Author
Rajesh Mehta
MBA Finance
Rajesh has become a distinguished expert in liability insurance with over 8 years of extensive experience in the insurance industry. As a dedicated writer for SecureNow, he crafts insightful and informative blogs and articles that help businesses and individuals understand the nuances of liability insurance, from policy details to industry trends. Throughout his career, Rajesh has developed a profound knowledge of various types of liability coverage, including professional, general, and product liability insurance. Their expertise enables them to break down complex topics into accessible content, making it easier for readers to make informed decisions about their insurance needs.
