The PUBLIC LIABILITY INSURANCE ACT 1991 was enacted in the aftermath of the:
Answer & Solution
Correct answer: A.
1. The Public Liability Insurance Act 1991 (Act 6 of 1991) was enacted in response to the Bhopal Gas Tragedy (December 1984) — to ensure IMMEDIATE relief on a NO-FAULT basis to victims of accidents involving hazardous substances.
2. Section 3 imposes ABSOLUTE LIABILITY on persons handling hazardous substances — irrespective of fault or negligence.
3. Section 4 mandates that every owner of hazardous substances must take INSURANCE before handling such substances.
4. Section 7A establishes the Environmental Relief Fund (paid by polluters' premium contributions).
5. The Act is a non-derogation framework — supplements other remedies, doesn't bar them.
6. Hence option B is correct.
_Source: EPA 1986 / Constitution / International Conventions — Public Liability Insurance Act 1991, Preamble_
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