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Section 7 – The Public Liability Insurance Act,1991

The Public Liability Insurance Act,1991

Section 7. Award of relief

(1) On receipt of an ‘application under sub-section (1) of Section 6, the Collector shall, after giving notice of the application to the owner and after giving the parties an opportunity of being heard, hold an inquiry into the claim or, each of the claims, and may make an award determining the amount of relief which appears to him to be just and specifying the person or persons to whom such amount of relief shall be paid.

(2) The Collector shall arrange to deliver copies of the award to the parties concerned expeditiously and in any case within a period of fifteen days from the date of the award.

(3) When an award is made under this section.-

(a) The insurer, who is required to pay any amount in terms of such award and to the extent specified in sub-section (2B) of Section 4, shall, within a period of thirty days of the date of announcement of the award, deposit that amount in such manner as the Collector may direct; (b) The Collector shall arrange to pay front the Relief Fund, in terms of such award and in accordance with the scheme under Section 7A, to the person or persons referred to in subsection (1) such amount as may be specified in that scheme;

(c) The owner shall, within such period, deposit such amount in such manner as the Collector may direct.]

(4) In holding any inquiry under sub-section (1), the Collector may, subject to any rules made in this behalf, follow such summary procedure as he thinks fit.

(5) The Collector shall have all the powers of a Civil Court for the purpose of taking evidence on oath and of enforcing the attendance of witnesses and of compelling the discovery and production of documents and material objects and for such other purposes as may be prescribed; and the Collector shall be deemed to be a Civil Court for all the purposes of Section 195 and Chapter XXVI of the Code of Criminal Procedure,1973 (2 of 1974).

(6) Where the insurer or the owner against whom the award is made under sub-section (1) fails to deposit the amount of such award within the period specified under subsection (3), such amount shall be recoverable form the owner, or as the case may be, the insurer as arrears of land revenue or of public demand.

(7) A claim for relief in respect of death of, or injury to, any person or damage to any property shall be disposed of as expeditiously as possible and every endeavor shall be made to dispose of such claim within three months of the receipt of the application for relief under sub-section (1) of Section 6.

2[(8) Where an owner is likely to remove or dispose of his property with the object of evading payment by him of any amount of the award, the Collector may, in accordance with the provisions of rules I to 4 of Order XXXIX of the First Schedule to the Code of Civil Procedure,1908 (5 of 19O8), grant a temporary injunction to restrain such act.]


1. Subs. By Act No. 11 of 1992.

2. Ins. by Act No. 11 of 1992.

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The Public Liability Insurance Act,1991

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