When a company pays Public Liability insurance, the premiums are paid to an insurance company.
Should a claim be made by a member of the public (as opposed to an employee, they are covered by Employers Liability Insurance), the claim and any monies awarded are handled by the insurance company. It has nothing to do with the District Collector.
The premiums collected by an insurance company go towards running their business, paying out on claims, creating and maintaining a reserve for future unknown liabilities and of course profit. There is no fund as such for the Collector to draw upon.
The District Collector is entrusted with a wide range of duties in the jurisdiction of the district. While the actual extent of the responsibilities varies in each State, they generally involve:
Collection of land revenue
Collection of income tax dues, excise duties, irrigation dues etc.
Distribution of agricultural loans
As District Magistrate:
Maintenance of law and order
Supervision of the police and jails
Supervision of subordinate Executive magistracy
Hearing cases under the preventive section of the Criminal Procedure Code
Supervision of jails and certification of execution of capital sentences
As Crisis Administrator:
Disaster management during natural calamities such as floods, famines or epidemics
Crisis management during riots or external aggression
Funds come from State and or Central Government.
As Development Officer:
Ex-officio chairman of the District Rural Development Agency, which carries out various developmental activities
Chairman of the District Bankers Coordination Committee
Head of the District Industries Center
I hope the above helps.
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