The Central Government has announced significant amendments to the Public Liability Insurance Rules, 1991, through the Public Liability Insurance (Amendment) Rules, 2024. These changes aim to strengthen the framework for handling claims related to environmental damage caused by industrial accidents. This notification was published on December 17, 2024.
Rule 3 is revised to specify that applications for relief or property restoration under Section 6 of the Act should be made to the Collector using Form I. It also clarifies that those with a direct and substantial connection to affected public property can file restoration claims.
A new Rule 3A outlines the process for allocating funds from the Environmental Relief Fund for environmental damage restoration. The Central Pollution Control Board (CPCB) or State Pollution Control Boards (SPCBs) will apply to the Central Government using Form II. The Central Government will then determine the allocation (up to 10% of the fund) using Form III. The CPCB/SPCBs will maintain accounts and submit annual reports on fund utilization, which the Central Government will monitor.
A new Rule 5A mandates industrial units to publicize the right to claim relief under the Act and these rules in case of an accident.
Rule 9 is revised to specify that notices of intention to file complaints under Section 18(b) of the Act should be submitted using Form IV via registered/speed post or email. It also clarifies the authorities to whom the notice should be sent (CPCB/Ministry of Environment for Union Territories, SPCB/State Environment Secretary for States) and how the 60-day period for filing a complaint is calculated.
Rule 10 is amended to increase the maximum aggregate insurance policy limit under Section 4(2A) to Rs. 250 crore, with a maximum aggregate of Rs. 500 crore for multiple accidents within a policy year. A new sub-rule (5) is added, stating that the owner is liable to reimburse amounts or provide relief as specified in the Schedule.
New Rules 12, 13, 14, 15, and 16 detail the process for filing complaints (Form V), conducting inquiries (including notice issuance in Form VI, evidence submission in Form VII), transferring complaints, extending time limits, and issuing orders and penalties. These rules also outline the service of notices and orders and the crediting of penalties to the Environmental Relief Fund. The adjudicating officer is expected to complete the inquiry within six months.
