PUBLIC LIABILITY ACT INSURANCE & LG POLYMER GAS LEAK

The Public Liability Insurance Act was passed by the Parliament of India in 1991. The Act is aimed to provide through insurance immediate relief by owners to persons affected due to accidents while handling hazardous substances on a NO Fault – basis. It is compulsory insurance to be bought by owners handling hazardous substances.

An amount equivalent to a premium is contributed to the Environmental Relief Fund.

Claim award/settlement decided by District Magistrate/Collector. Liability beyond insurance limits is to be met from the Environmental Relief Fund (ERF).

Insurance pays Rs 25,000 per death and Rs 12,500 for medical expenses. This is the amount prescribed by the ACT.

On 7th May 2020, Toxic Styrene gas leaked from VIZAG plant of LG Polymers, a subsidiary unit of LG Chemicals and part of South Korea’s LG Group. Styrene is an organic compound and vaporizes at higher temperatures. It happened after the plant was about to start operations after being closed for 43 days post the nationwide lockdown imposed to contain the spread of Corona virus.

800 people were admitted to the hospital after the gas leak incident. 12 people including 2 minors and 32 cattle died. Rs 1 crore announced per dead by CM.

It would be interesting to know the answers to the following questions:

1. What was the award by the District Collector for the families of 12 dead persons? What portion of the award was paid from the ERF?
2. What was the award to the 800 people who were affected by the gas leak? What portion of the award was paid from the ERF?
3. Understand that thousands more who were exposed to Styrene fumes have the potential to develop Cancer since Styrene is a possible carcinogen. Has any award been made to these people exposed to Styrene?
4. The Chief Minister of AP announced Rs 1 crore per dead person. Is it over and above the award by the District Collector?
5. The preliminary findings of the Andhra Pradesh Forensic Science Laboratory have revealed that the accident was due to human error as the temperature of the storage tank containing styrene was not maintained below 20 degrees Celsius. If so, was any case filed under negligence for a higher compensation for affected persons?
6. Initial newspaper reports mentioned that the LG Polymers plant has been operating without a valid environment clearance under the provisions of the Environment Impact Assessment (EIA) notification 2006. If so, what action has been taken?
7. Did LG Polymers have CGL insurance? If yes, what is the status of the claim under the CGL policy?

It is understood that the ERF has grown very big and has huge amounts available.

• If so, why is the ERF not being used for the purpose it was created?
• Why is the value of human life so cheap?
• What is the point of not effectively using the funds in the ERF?
• If I am wrong and funds are liberally being used for accident victims, why is it not being publicized?