On July 19, 2024, the Ministry of Environment, Forest and Climate Change (MoEF&CC) released the Draft Public Liability Insurance (Amendment) Rules, 2024. These amendments seek to enhance the Public Liability Insurance Rules, 1991, introducing crucial changes aimed at improving the application and relief processes for environmental damage
Key Amendments in the Draft Rules
1. Substitution of Rule 3: Application for Relief
The existing Rule 3 has been substituted with a more inclusive and detailed rule regarding applications for relief.
New Rule 3:
(1): Applications for claims of relief or property restoration must be submitted by any person listed under sub-section (1) of section 6 of the Act to the Collector using Form I.
(2): Beyond those specified in sub-rule (1), any person or entity with an interest in the affected public property, and who can demonstrate a direct and substantial connection with it, can also file for relief.
Implication: This amendment broadens the scope of who can apply for relief, ensuring that all stakeholders with a legitimate interest in the affected property can seek compensation or restoration.
2. Insertion of Rule 3A: Application for Environmental Damage
A new rule has been introduced to address environmental damage that cannot be attributed to a specific company or industry.
Rule 3A:
In cases of environmental damage with no clear responsible party, the Central or State Pollution Control Boards will apply for funds from the Environmental Relief Fund.
Applications must be submitted to the Central Government using Form IA, accompanied by an Assessment Report and supporting documents.
Implication: This provision ensures that environmental damage is addressed even when no single entity can be held accountable, promoting proactive environmental protection and restoration efforts.
3. Insertion of Rule 5A: Publication of Right to Relief by Industrial Units
A new rule mandates that industrial units must inform affected individuals of their right to claim relief in the event of an accident involving hazardous substances.
Rule 5A:
If an accident occurs in an industrial unit due to activities involving hazardous substances, the unit must publicize the right to claim relief among the affected people.
Implication: This rule enhances transparency and ensures that affected individuals are aware of their rights and the relief mechanisms available to them, promoting accountability among industrial units.
Public Consultation:
Objection or suggestion on the proposals contained in the draft notification can be sent:
Through Post: Ministry of Environment, Forest and Climate Change, Indira Paryavaran Bhawan, Jor Bagh Road, Aliganj, New Delhi – 110003
Email address: mishra.vp@gov.in or vinodsingh.77@gov.in.
