The Bhopal Gas Tragedy, which arose on account of leakage of the methyl isocyanate gas from the Union Carbide Plant in Bhopal on 2nd and 3rd December, 1984 resulting into a liability of US $ 470 million for Union Carbide

The Bhopal Gas Tragedy incident led to Public Liability Insurance Act in 1991. This Act imposes no fault liability i.e. irrespective of any wrongful act, neglect or default on the owner to pay relief in the event of a death or injury to any person other than workman or damage to property of any person arising out of accident while handling any hazardous substance. No fault liability means the claimant is not required to prove that the death, injury or damage was due to any wrongful act, neglect or default of any person.