Comparison between Act policy and Public Liability Industrial Policy

Comparison Between General &

Mandatory P/L Policies

GENERAL (MKT. AGREEMENT)	MANDATORY (UNDER PLIA)
Action To Be Initiated In the Court Of Law	Application Of Relief To Be Made to the Collector
P /L Arises Out of tort	P/L Arises Out Of Statute
Cover Granted To All Insureds	Cover Granted To Owners Handling Hazardous Substances Falling Under the Act
Pollution /Transportation Excluded Unless Added On Payment Of Addition Premium	Pollution/Transportation Covered As Per The Definition of Handling under the Act

Comparison Between General &

Mandatory P/L Policies

Only One Premium Payment To Be Made To the Insurance	Two Payments Have To Be Made:
	A) To the Insurer
	B) To the Environment relief Fund
Per Person Liability Depends On Actuals Awarded By Court	Maximum Sum Insuredunder the Act
No Such Maximum Limits Fixed	Maximum Sum Insured
	AOA-RS 5 Crores
	AOY –Rs 1.5 Crores

The Public Liability Act Policy is compulsory for those persons/organisations who are involved into handling of hazardous goods in mentioned quantities which are prescribed in the Act (Public Liability Act 1991). The list and quantity have been attached for your reference.
Once any organisation is not involved into the handling/ use etc of the hazardous goods, then the Act policy is not compulsory.
The Market agreement policies provide for indemnity over and above indemnity arising from Act Policy. This means that due to any mishap, death is caused to a person and it is established that by the way of Public Liability Act, the dependants of the person should be awarded Rs. 25000/- (standard coverage) and in totality the dependents are to be awarded 1 lac then 25000/- will be paid under act policy if applicable and remaining under the Market agreement policy.

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