What is Public liability?

Public liability insurance policy covers a policyholder from claims from third parties for death or injury or property damage caused by hazardous substances handled in a factory.
About the Public Liability Insurance Act, 1991:

The Act came into existence as aftermath of the Bhopal Gas Tragedy.

• 1. This law requires all enterprises that own or have control over handling of any hazardous substance, to subscribe to a “public Liability insurance policy cover” whereby they are insured against the claims from third parties for death or injury or property damage caused by hazardous substances handled in their enterprise.
• 2. The compensation payable under this Act is on no fault basis i.e. respective of the company’s neglect. The victims who are exposed to hazardous substance used by an industry may file a claim with the Collector within 5 years of the accident.