The Ministry of Environment, Forest and Climate Change (Authority) has published a Draft Notification on Public Liability Insurance (Amendment) Rules, 2024 (‘Rules’), in the Gazette of India, bearing S.O 2872(E) dated July 19, 2024.
Some major highlights of the said Notification are mentioned hereinunder:
1. Definitions: Under Rule 2 of Public Liability Insurance Rules, 1991 the following clauses have been inserted:
(i) after clause (a), the following clauses have been inserted:
‘(aa) “adjudicating officer”, means any officer appointed/notify under section 15A of the act;
(ab) “Assessment Report”, means a report prepared by Central Pollution Control Board or State Pollution Control Boards under rule 3A of the Public Liability Insurance Rules, 1991 in respect of estimates of the extent of environmental damage caused by an incident.
(ii) after clause (d), the following clause have been inserted, namely:
(da) “Presenting Officer” means the officers (or) their authorized representative as per Appendix-I for taking cognizance of non-compliance (or) contravention of the provisions of the Act within their respective jurisdiction and for initiating and presenting the matter before the concerned Adjudicating Officer.
2. Application for Relief: Rule 3 of Public Liability Insurance Rules, 1991 has been substituted with the following:
“3. Application for relief. – (1) An application for claim of relief or restoration of property shall be made by any person as enlisted under sub-section (1) of section 6 of the Act to the Collector in Form I.
(2) Notwithstanding anything contained in sub-rule (1), an application for relief may also be filed by any person or entity who holds an interest in the affected public property, and who can demonstrate a direct and substantial connection with that property.”
Further, the following new clause has been inserted:
“3A. Application for Environmental Damage. – Where damage is caused to environment which may not be attributed to a particular company/industry, the Central Pollution Control Board or State Pollution Control Board, as the case may be, shall make an application for allocation of funds from Environmental Relief Fund to the Central Government for identification, assessment and remediation of that damage in Form IA along with an Assessment Report and documents substantiating the assessment.”.
3. Accidents in Industrial Units: Under Rule 5 of Public Liability Insurance Rules, 1991, the following new clause has been inserted
“5A. Publication of right to relief by the Industrial unit. – In case where any accident has occurred in any industrial unit due to manufacture, processing, treatment, package, storage, transportation by vehicle, use, collection, destruction, conversion, offering for sale, transfer or the like of hazardous substance, such industrial unit shall further publicize among the affected people regarding their right to claim for relief under these rules.”
4. Maximum Aggregate Liability: The maximum aggregate liability of the insurer to pay relief under an award shall be:
Pay Relief under an award to the several claimants arising out of an accident
Maximum Aggregate Liability
One Accident
Shall not exceed INR 250 Crores
More than one accident during the currency of insurance policy or one year whichever is less
Shall not exceed INR 500 Crores in the aggregate
5. The owner shall be liable to reimburse such amount or provide such other relief for such other damage or loss.
6. All the penalties imposed under Section 14, 15 or 17, and the amount of such penalty shall be credited to the Environmental Relief Fund established under Section 7A.
7. Adjudicating Officer: Under Rule 11 of Public Liability Insurance Rules, 1991, the following clauses have been inserted:
a. Rules concerning the Allocation of Funds for Environmental Damage
b. Rules with respect to the Appointment of Adjudicating Officer
c. Rules with respect to Cognizance and Processing of Matter
d. Rules concerning the manner of inquiry by Adjudicating Officer
e. Rules with respect to Transfer of Matters and Proceedings
f. Process and Manner of Service of Notice
g. Clauses with respect to orders of the Adjudicating Officer and factors to be taken into account while determining Quantum of Penalty.
h. Appeals from the order of Adjudicating Officer.
i. Rules with respect to failure to pay penalty imposed by the Adjudicating Officer
Any person interested in making any objection or suggestion on the proposals contained in the draft notification may do so in writing within the period so specified through post to the Secretary, Ministry of Environment, Forest and Climate Change, Indira Paryavaran Bhawan, Jor Bagh Road, Aliganj, New Delhi – 110003 or electronically at email address: mishra.vp@gov.in or vinodsingh.77@gov.in .
A copy of the Draft Notification is attached herewith for your reference.
Source category: Others
Attachments
- /2024/419_Public_Liability_Insurance_Rules_1721745909.pdf
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