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Govt issues guidelines for better implementation of PLI schemes

By Religare

The ministry of environment, forest and climate change has issued directions to Central Pollution Control Board (CPCB) to ensure better implementation of Public Liability Insurance (PLI) Act, 1991.

The Public Liability Insurance (PLI) Act, 1991 makes it obligatory upon the user industries handling 179 types of chemicals and compounds and other classes of flammable substances to subscribe a special insurance policy to cover the liabilities likely to arise on account of any chemical (industrial) disaster/accident and payable to those affected people who are not the workers on 'no fault basis'/ 'absolute liability'.


The Act establishes an Environment Relief Fund (ERF), which is subscribed by all such user industries by an amount equal to the annual premium amount of such insurance policies. The directions have been issued on September 1, 2015 and will ensure that all the liable handling user industries subscribe to the PLI insurance policy and deposit the prescribed amount in Environment Relief Fund (ERF).

There are many cases where owners have failed to subscribe PLI policies because of ignorance. In view of the above strengthening the implementation of the provisions of the Act so far, the Ministry has initiated several steps to strengthen the implementation of the Act.

Some of measures includes, all the state pollution control boards(SPCBs) for UTs have been advised on 16th April, 2015 for including PLI insurance policy as one of the point in the check list before according or renewing CTE or CTO to an industry with a follow up letter on 16th June, 2015.

A meeting of general insurance companies had been convened on 29th April, 2015 to sensitizing them.

PLI Act is administered by the Ministry of Environment Forest and Climate Change.

Story first published: Monday, September 7, 2015, 23:00 [IST]
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