Rules and Regulations of India

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10. Extent of liability

(1) Subject to the provisions of sub-section (2A) of section 4 of the Act, the maximum aggregate liability of the insurer to pay relief under an award to the several claimants arising out of an accident shall not exceed rupees five crores and in case of more than one accident during the currency of the policy or one year, whichever is less, shall not exceed rupees fifteen crores in the aggregate.

(2) In awarding relief under the Act, the Collector shall ensure that the insurer’s maximum liability under the Insurance Policy does not exceed the limits stipulated in sub-rule (1).

(3) Any award for relief which exceeds the amount payable under the Insurance Policy shall be met from the relief fund and in case the award exceeds the total of the amount of insurance and the relief fund, and amount which falls short of such sum payable shall be met by the owner.

5[(4) Notwithstanding anything contained in sub-rule (3), where an owner is exempted under sub-section (3) of section 4 of the Act, he shall be liable to discharge all the claims arising out of an accident.]]

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