Public Liability Insurance Act was enacted in the year __________.

The correct answer is '1991'

Key Points

• Public Liability Insurance Act, 1991:
  • The Public Liability Insurance Act was enacted in 1991 by the Indian Parliament to provide immediate relief to victims of accidents involving hazardous substances.
  • The Act mandates that companies handling hazardous substances must take insurance policies to ensure compensation for affected individuals in case of an accident.
  • It aims to create a mechanism for ensuring that compensation is available to victims without the need for prolonged legal battles.
  • The Act also makes it obligatory for industries to contribute to an Environmental Relief Fund, which acts as an additional safeguard for victims.

Additional Information

• Option 2 - 1974:
  • The year 1974 is significant for environmental legislation in India, as it saw the enactment of the Water (Prevention and Control of Pollution) Act. However, this Act primarily focuses on water pollution and is unrelated to the Public Liability Insurance Act.
• Option 3 - 1986:
  • 1986 is notable for the Environmental Protection Act, which was enacted in response to the Bhopal Gas Tragedy. While the Environmental Protection Act addresses environmental protection in a broader sense, it does not specifically deal with immediate relief mechanisms for victims of hazardous substance accidents.
• Option 4 - 1981:
  • The Air (Prevention and Control of Pollution) Act was enacted in 1981 to address air pollution control and prevention. However, like the Water Act of 1974, it does not pertain to public liability or compensation for victims of industrial hazards.