Units using hazardous chemicals must take insurance

Our Bureau New Delhi | Updated on January 22, 2018

Mandatory cover for liabilities arising out of accidents

Industries using 179 types of chemicals and compounds and other classes of flammable substances will have to take a special insurance policy to cover liabilities arising out of a possible accident/disaster.

The Ministry of Environment and Forests on Monday directed the Central Pollution Control Board to ensure better implementation of the Public Liability Insurance (PLI) Act, 1991, an official statement said.

Under the PLI Act, an Environment Relief Fund is to be established and subscribed to by all user-industries by an amount equal to the annual premium of such insurance policies.

The CPCB will now direct state pollution control boards and ensure that such industries are not allowed to operate and renewal of licences of such industries are cancelled if they do not comply with the provisions of the PLI Act.

In order to ensure the implementation of the Act, the Ministry has already advised state pollution control boards and pollution control committees of Union Territories for including PLI insurance policy as a part of their checklist.

The Ministry has also had a meeting with general insurance companies to sensitise them and written a letter to the Insurance Regulatory and Development Authority on July 1, to draft a standard PLI policy for uniformity. The advisory has also been issued on the matter to big industrial houses and industry associations, the Ministry said in its statement.

Published on September 07, 2015

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