Owner Liability

• If you own a business that uses hazardous materials, or handles or transports hazardous materials, you must give compensation if an accident results in injury or death to someone other than one of your workmen, or damage to property. Any person claiming relief due to injury, death or damage does not have to prove the accident occurred because of any wrong-doing or negligence. The amount you must pay includes up to 12,500 rupees per person for medical expenses, 25,000 rupees given to the dependents of the deceased person, plus up to 12,500 rupees for medical expenses. If a person is disabled as a result of the accident, you are liable to pay up to 12,500 rupees for medical expenses, and compensation depending on the degree of disability, up to a maximum of 25,000 rupees. Depending on the degree of damage, you may have to pay up to 6,000 rupees in compensation for damage to property.
  
  

Insurance Policy

• When a business is involved in using hazardous materials, the business owner must purchase insurance contracts to cover compensation that must be paid to anyone injured as a result of an accident involving hazardous materials, to the dependents of anyone killed, or for damage to property. You must take out this public liability insurance before you commence any work involving hazardous materials, and any business already engaged in working with hazardous materials had to take out insurance within one year from the commencement of the act. You have to renew your public liability insurance policy or policies before they expire.
  
  

Environment Relief Fund

• The central government established the Environmental Relief Fund, in accordance with section 7A of the act. The relief fund is used to ensure that victims of accidents who are entitled to compensation receive relief in a timely manner, and that victims receive compensation even if the business owner has failed to purchase public liability insurance in violation of the act. Business owners must pay a levy, along with their public liability insurance premiums; this levy is used to finance the relief fund. Business owners pay the levy to the insurance company providing public liability insurance, and the insurance company pays the levy into the relief fund.
  
  

Penalties

• The penalties for violations of the act include terms of imprisonment and fines. If you fail to purchase public liability insurance or if you fail to adhere to regulations concerning the handling of hazardous materials issued by the government, the minimum term of imprisonment you can receive is 18 months, but can be up to six years. You may receive a fine of not less than 100,000 rupees, or both imprisonment and a fine.