Public Liability Insurance Act 1991 is an Act which has been enacted to provide immediate relief to people affected by accidents while handling any hazardous substances as listed under Environment Protection Act 1986.
The Act requires such Business Owners and Factory Owners to mandatorily purchase a Public Liability Insurance Act Policy.
The Public Liability Insurance Act 1991 was enacted on 22nd January 1991 as a response to the Bhopal Gas Tragedy which killed around 3000 people while injuring many others.
The Act Provides for a ‘No Fault Liability’ against the Business Owner implying that the Business Owner should have purchased the Public Liability Insurance Act Policy so that the Injured Party can claim compensation without attributing fault on part of the owner of the hazardous substance.