S is a limited liability company carrying on a business in manufacture and sale of hazardous products. It has insured its risks under a general insurance contract with one of the Indian insurer. In course of the currency

This case is covered under the Public Liability Insurance Act, 1991. Very often we notice members of the public being affected by major accidents in establishments. This Act provides for mandatory public liability insurance for installations handling hazardous substances to provide minimum relief to victims of accidents, other than the employees. The Act imposes no fault liability, i.e. irrespective of any wrongful act, neglect or default on the owner to pay the relief in the event of a death of or injury to any person (other than workman) or damage to property of any person arising out of an accident while handling any hazardous substance. No fault liability means that 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. The Act itself under a schedule attached to it lays down the scale of relief/ compensation due in various situations: Fatal accident: ₹ 25,000 per person Permanent total disability: ₹ 25,000 per person; There are certain other prescription to meet allied situation based on the schedule to the Act the amount of relief due in the present case, will work to:- No. of death 20 at the rate of ₹ 25,000/person = ₹ 5,00,000 No. suffering from permanent total disability 40 @ ₹ 25000/person = ₹ 10,00,000 Total = ₹ 15,00,000 The question of compensating for medical expenses and the minority age of the affected are relevant factor only for determining permanent partial disability which is not applicable here.