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Environment Ministry Rolls out Public Liability Insurance (Amendment) Rules, 2024
The Central Government, through the Public Liability Insurance (Amendment) Rules, 2024, has introduced key updates to the Public Liability Insurance Rules, 1991, aimed at strengthening the claims process for environmental damage caused by industrial accidents. The amendments were notified on December 17, 2024.
Key Changes:
- Enhanced Insurance Limits:
Under the amended Rule 10, the maximum insurance policy limit under Section 4(2A) is increased to ₹250 crore per incident and ₹500 crore for multiple accidents in a policy year. A new sub-rule mandates that owners provide relief or reimbursement as per the updated Schedule. - Relief and Restoration Claims:
- Rule 3: Form I must now be submitted to the Collector to seek relief or property restoration under Section 6 of the Act. Claims can also be made by individuals with a significant direct connection to the affected property.
- Rule 3A: Introduces procedures for utilizing the Environmental Relief Fund. Applications for restoration funding (up to 10%) will be submitted by SPCBs or CPCB using Form II. Allocation decisions will be made by the Central Government using Form III, which will oversee fund utilization and reporting.
- Notification of Rights and Complaints:
- Rule 5A: Industrial units must inform stakeholders of their rights to remedies under the Act.
- Rule 9: Notifications of intent to file complaints (Section 18(b)) must be sent via email or registered mail using Form IV. The rule also clarifies timelines and designated authorities for notice submissions.
- Complaint Adjudication Procedures:
New Rules 12–16 outline processes for filing complaints (Form V), conducting inquiries, transferring cases, and issuing orders or fines. Notices must follow prescribed formats (Forms VI and VII), and fines are credited to the Environmental Relief Fund. Investigations are to be completed within six months.
These amendments aim to streamline the compensation process, ensure accountability, and enhance environmental restoration efforts.
