Section 7 of PLIA : Section 7: Award Of Relief

Explanation using Example

Imagine a situation where a chemical factory in a town has an accidental leakage of harmful substances causing harm to the local population and the environment. John, a local resident, applies for relief under sub-section (1) of section 6 of The Public Liability Insurance Act, 1991, after he and his property were affected by the leakage.

Upon receiving John's application, the Collector notifies the factory owner about the claim and holds an inquiry. After assessing the damages and hearing both parties, the Collector determines the amount of relief to be paid to John.

Within fifteen days of making the award, the Collector delivers copies of the award to both John and the factory owner. The factory's insurer is then required to deposit the awarded amount within thirty days. If the insurer fails to do so, the amount is recoverable from the factory owner as arrears of land revenue or of public demand.

Additionally, the Collector has the power to enforce the attendance of witnesses, take evidence on oath, and compel the discovery and production of documents during the inquiry. If the factory owner attempts to evade payment by disposing of his property, the Collector can grant a temporary injunction to prevent such action.