Vizag gas leak Public liability insurance in focus

Chennai: The gas leak at LG Polymers India Private Ltd in Visakhapatnam in Andhra Pradesh has brought back the focus on the public liability insurance, said insurance experts. Simply put, public liability insurance policy covers a policyholder from claims from third parties for death or injury or property damage caused by hazardous substances handled in a factory.

Industry sources said that the insurance policies of the Mumbai-headquartered LG Polymers are with a consortium of insurers government and private - though the value of insurance coverage under the Public Liability Insurance is not known. "The policy value limits stipulated in the Public Liability Insurance Act are very low and need upward revision," an industry official said, preferring anonymity. According to the official, many industries prefer to limit their exposure to Rs 5 crore per accident as stipulated in the Public Liability Insurance Act.

Industry officials said the compensation paid under the mandatory insurance policy in the case of death and permanent total disability is Rs 25,000 per person.