Subs. by Act 18 of 2013, s. 2 and Schedule (w.e.f. 1-4-2024). — THE PUBLIC LIABILITY INSURANCE ACT, 1991

4. Subs. by Act 18 of 2013, s. 2 and Schedule (w.e.f. 1-4-2024). Explanation . — For the purposes of this sub-section " paid-up capital " , in relation to an owner not being a company, means the market value of all assets and stocks of the undertaking on the date of contract of insurance.] (2B) The liability of the insurer under one assurance policy shall not exceed the amount specified in the terms of the contract of insurance in that insurance policy. (2C) Every owner shall also, together with the amount of premium, pay to the insurer, for being credited to the Relief Fund established under section 7A, such further amount, not exceeding the sum equivalent to the amount of premium, as may be prescribed. (2D) The insurer shall remit to the authority specified in sub-section (3) of section 7A the amount received from the owner under sub -section (2C) for being credited to the Relief Fund in such manner and within such period as may be prescribed and where the insurer fails to so remit the amount, it shall be recoverable from insurer as arrears of land revenue or of public demand.] (3) The Central Government may, by notification, exempt from the operation of sub-section (1) any owner, namely:— (a) the Central Government; (b) any State Government; (c) any corporation owned or controlled by the Central Government or a State Government; or (d) any local authority: Provided that no such order shall be made in relation to such owner unless a fund has been established and is maintained by that owner in accordance with the rules made in this behalf for meeting any liability under sub-section (1) of section 3.

Section 4