Environmental Relief Fund

The Ministry of Environment, Forest and Climate Change had issued directions under section 18 (1) (a) of the Water Act and the Air Act to Central Pollution Control Board (CPCB) to ensure better implementation of Public Liability Insurance (PLI) Act, 1991. The Public Liability Insurance (PLI) Act, 1991 makes it obligatory upon the user industries handling 179 types of chemicals and compounds and other classes of flammable substances to subscribe a special insurance policy to cover the liabilities likely to arise on account of any chemical (industrial) disaster/accident and payable to those affected people who are not the workers on ‘no fault basis’/ ‘absolute liability’. The Act establishes an Environment Relief Fund (ERF), which is subscribed by all such user industries by an amount equal to the annual premium amount of such insurance policies.

Leave a Comment

Your email address will not be published. Required fields are marked *