Public Liability Insurance

You need public liability insurance if you own a company! Why? Because, while you can always take care of everything you possibly can, sometimes things slip out of your hand, and unavoidable things happen. What if a possible client falls from the stairs of the building you own, then you’d have to spend money on their hospital expenses. 

When India witnessed the Bhopal Gas Tragedy and the protests that withstood till long after, the Indian government introduced the Public Liability Insurance Act in 1991. This act was to make sure the industry/company owners took insurance which would cover the expenses/compensation if any accident takes place within the premises of the industry. Another major incident that provoked (not directly though) the public, was the gas leak at LG Polymers Chemical Plant at Vishakhapatnam, Andhra Pradesh. The leak had killed 13 people and hospitalized thousands of people on May 7, 2020.

The public liability insurance act ensures that it provides - 

1. Immediate assistance to those injured or affected by the accident
2. Compensates for the death/injury of any person or damage to any property
3. Claim for compensation if it is based on an action/negligence of responsibility during the incident

The claim can only be approached by - 

1. The person who sustained the injuries
2. Owner of the property which has been damaged
3. The legal representative of anyone who has died

All of the above is important to be noted and the application should be made to the collector, which should also be done within 5 years of the accident.