How Are Public Liability Insurance Funds Actually Used in Real-Life Situations?

Dear friends,

For the last several years, industries have been paying Public Liability Insurance premiums to insurance companies. It is obvious that the insurance companies must have collected a very huge sum under this heading.

Utilization of Public Liability Insurance Funds

I would like to know how the fund is utilized. I have yet to come across any news indicating that the district collector, who has the authority to disburse immediate relief to affected people due to any accident involving hazardous chemicals, has utilized this fund for the right cause.

My inquiries with some of my friends working in insurance companies have not yielded any satisfactory answers.

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.

Responsibilities of the District Collector

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:

As Collector:

- Land assessment
- Land acquisition
- 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.

Regards,
Harsh