'Y Ltd.' a contractor is planning to handle 'Hazardous Substance'. What are the requirements as regards to taking insurance policy before starting the handling of hazardous substance ? Is there any limit for taking insur

Under the Public Liability Insurance Act, 1991, 'Y Ltd.' has specific requirements regarding taking an insurance policy before commencing the handling of any hazardous substance. Requirements as regards to taking insurance policy before starting the handling of hazardous substance (Section 4 of the Public Liability Insurance Act, 1991): Section 4 of the Public Liability Insurance Act, 1991, requires the owner (which includes a contractor handling hazardous substances) to take out one or more insurance policies. This must be done before starting the handling of hazardous substance. Such insurance policy should provide for a contract of insurance, whereby he is insured against liability to give relief under Section 3 of the Act. Section 3 deals with the liability to pay relief in case of death or injury to any person or damage to any property resulting from an accident involving a hazardous substance. Limit for taking insurance: The amount of the insurance policy should not be less than the amount of paid-up capital of the undertaking handling any hazardous substance. However, this amount should not exceed ₹50 crore, as may be prescribed. Therefore, 'Y Ltd.' must obtain an insurance policy covering its liability for potential accidents involving hazardous substances, with a minimum coverage linked to its paid-up capital, but not exceeding ₹50 crore.