Public Liability Insurance Act, 1991
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.]]