Section 23 of PLIA : Section 23: Power To Make Rules

Explanation using Example

Imagine a chemical manufacturing company, "ChemCo," operates near a residential area. ChemCo is required by law to have a public liability insurance policy to cover potential accidents. Under Section 23 of The Public Liability Insurance Act, 1991, the Central Government issues a notification specifying that:

• The maximum insurance coverage amount that ChemCo must secure is set at 500 million rupees.
• ChemCo must contribute 2 million rupees annually to the Relief Fund.
• The contributions to the Relief Fund must be remitted by ChemCo's insurer within 30 days of collection.

These rules, as specified by the Central Government, help ensure that in the event of an accident at ChemCo resulting in public harm, there are adequate funds available for immediate relief and compensation to affected individuals.