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17.
PUBLIC LIABILITY INSURANCE RULES, 1991
Public Liability Insurance Act, 1991
[6 OF 1991]1
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.
BE it enacted by Parliament in the Forty-first Year of the Republic of India as follows: —
Short title and commencement.
1. (1) This Act may be called the Public Liability Insurance Act, 1991.
(2) It shall come into force on such date2 as the Central Government may, by notification, appoint.
Definitions.
2. In this Act, unless the context otherwise requires,—
3[(a) “accident” means an accident involving a fortuitous or sudden or unintended occurrence while handling any hazardous substance resulting in continuous or intermittent or repeated exposure to death of, or injury to, any person or damage to any property but does not include an accident by reason only of war or radio-activity;]
(b) “Collector” means the Collector having jurisdiction over the area in which the accident occurs;
(c) “handling”, in relation to any hazardous substance, means the manufacture, processing, treatment, package, storage, transportation by vehicle, use, collection, destruction, conversion, offering for sale, transfer or the like of such hazardous substance;
(d) “hazardous substance” means any substance or preparation which is defined as hazardous substance under the Environment (Protection) Act,
1. Dated 22-1-1991.
2. With effect from 1-4-1991, vide G.S.R. 253, dated 27-3-1991.
3. Substituted by the Public Liability Insurance (Amendment) Act, 1992, w.r.e.f. 31-1-1992. Prior to its substitution, clause (a) read as under;
‘(a) “accident” means an accident or incident occurring while handling any hazardous substance;’
1986 (29 of 1986), and exceeding such quantity as may be specified, by notification, by the Central Government;
(e) “insurance” means insurance against liability under sub-section (1) of section 3;
(f) “notification” means a notification published in the Official Gazette;
4[(g) “owner” means a person who owns, or has control over handling, any hazardous substance at the time of accident and includes,—
(i) in the case of a firm, any of its partners;
(ii) in the case of an association, any of its members; and
(iii) in the case of a company, any of its directors, managers, secretaries or other officers who is directly in charge of, and is responsible to, the company for the conduct of the business of the company;]
(h) “prescribed” means prescribed by rules made under this Act;
5[(ha) “property” includes any private property or public property affected or damaged by any unit or undertaking, due to manufacture, processing, treatment, package, storage transportation, use, collection destruction, conversion, transfer or such other processes of hazardous substance;]
6[7[(hb)] “Relief Fund” means the Environmental Relief Fund established under section 7A;]
(i) “rules” means rules made under this Act;
(j) “vehicle” means any mode of surface transport other than railways.
5[(k) words and expressions used and not defined in this Act but defined in the Transfer of Property Act, 1882 (4 of 1882), and the Environment (Protection) Act 1986 (29 of 1986), shall have the meanings respectively assigned to them in those Acts.]
COMMENTS
SECTION NOTES
2.1 Definition of “Accident” [Section 2(a)]
An accident involving a fortuitous, sudden, or unintended occurrence while handling any hazardous substance.
Results of Occurrence:
Continuous, intermittent, or repeated exposure leading to: Death of any person.
4. Substituted by the Public Liability Insurance (Amendment) Act, 1992, w.r.e.f. 31-1-1992. Prior to its substitution, clause (g) read as under:
‘(g) “owner” means a person who has control over handling any hazardous substance;’
5. Inserted by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024.
6. Inserted by the Public Liability Insurance (Amendment) Act, 1992, w.r.e.f. 31-1-1992.
7. Renumbered as clause (hb) by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024.
Injury to any person.
Damage to any property.
Exclusions:
Does not include an accident solely due to: War.
Radio-activity.
2.2 Definition of “Owner” [Section 2(g)]
A person who at the time of an accident: Owns any hazardous substance. Has control over handling any hazardous substance.
Inclusions for speci c entities:
In the case of a rm:
Any of its partners. In the case of an association:
Any of its members. In the case of a company:
Any of its directors.
Any of its managers.
Any of its secretaries.
Any other of cers who are:
Directly in charge of the company for the conduct of its business. Responsible to the company for the conduct of its business.
Liability to give relief in certain cases on principle of no fault.
3. 8[(1) Where death or injury to any person (other than a workman) or damage to any property has resulted from an accident, the owner shall be liable to reimburse such amount, or provide such other relief as may be prescribed, for—
(a) death due to fatal accident;
(b) medical expenses incurred due to total or partial disability;
(c) loss of wages due to partial disability;
(d) other injury or sickness;
(e) damage to private property; or
(f) such other loss or damage, as may be prescribed.]
(2) In any claim for relief under sub-section (1) (hereinafter referred to in this Act as claim for relief), the claimant shall not be required to plead and establish that
8. Substituted by the Jan Vishwas (Amendment of Provisions) Act, 2023, w.e.f. 1-4-2024. Prior to its substitution, sub-section (1), read as under:
“(1) Where death or injury to any person (other than a workman) or damage to any property has resulted from an accident, the owner shall be liable to give such relief as is specified in the Schedule for such death, injury or damage.”
BARE ACT WITH SECTION NOTES
AUTHOR : TAXMANN'S EDITORIAL BOARD
PUBLISHER : TAXMANN
DATE OF PUBLICATION : AUGUST 2025
EDITION : 2025 EDITION
ISBN NO : 9789371262644
NO. OF PAGES : 44
BINDING TYPE : PAPERBACK
DESCRIPTION
Public Liability Insurance Act 1991 with Public Liability Insurance Rules 1991 [Bare Act with Section Notes] by Taxmann is a concise yet authoritative reference on India's principal law for providing immediate relief to persons affected by accidents involving hazardous substances. Updated with all amendments up to 2025, including those introduced by the Jan Vishwas (Amendment of Provisions) Act 2023, this Edition ensures legal accuracy and practical usability. It covers mandatory public liability insurance, strict no-fault liability, and the Environmental Relief Fund framework for prompt compensation and environmental restoration. This book is intended for the following audience:
• Legal Professionals & Litigators – For interpreting provisions on liability, claims, and environmental relief
• Regulatory Authorities & Enforcement Officers – For administering compliance, inspections, and claims
• Industrial & Manufacturing Enterprises – To ensure adherence to statutory insurance requirements when handling hazardous substances
• Environmental Consultants & Policy Makers – For policy formulation and environmental liability assessment
• Academicians, Researchers & Students – As a reliable primary legal reference in environmental and public liability law
The Present Publication is the 2025 Edition, covering the amended and updated text of the Public Liability Insurance Act [Act No. 6 of 1991] and Rules, with the following noteworthy features:
• [Complete & Updated Text] Incorporating all legislative amendments up to 2025
• [Section-wise Notes] Clear explanations for practical interpretation
• [Pre-amendment Provisions] Historical text in footnotes for legal context
• [Case Law References] Key judicial decisions under major provisions
• [Rules] Full text of updated Public Liability Insurance Rules, 1991
• [User-friendly Structure] Logical arrangement with a subject index for easy reference
