---
title: "Public Liability Insurance Act 1991: India | Model Diplomat"
description: "The Public Liability Insurance Act 1991 mandates no-fault liability for hazardous substance handlers in India, ensuring victims receive immediate compensation."
url: "https://modeldiplomat.com/learn/glossary/public-liability-insurance-act-1991"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Public Liability Insurance Act 1991 is an Indian statute imposing no-fault liability on handlers of hazardous substances to compensate victims of accidents through compulsory insurance.
- How does no-fault liability under the Act differ from absolute liability?
- What is the Environment Relief Fund and when was it added?
- Does accepting relief under the Act bar a larger compensation claim?
- Who handles claims under the Act and how?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Public Liability Insurance Act 1991 is an Indian statute imposing no-fault liability on handlers of hazardous substances to compensate victims of accidents through compulsory insurance.

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## Timeline

1. 22 January 1991

   The statute received presidential assent on and entered into force on 1 April 1991.

2. 1 April 1991

   The statute received presidential assent on 22 January 1991 and entered into force on .

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Example

After the May 2020 styrene-vapour leak at LG Polymers in Visakhapatnam, India's National Green Tribunal invoked absolute-liability principles alongside the 1991 Act and ordered an interim deposit of rupees fifty crore from the company.

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