The Public Liability Insurance Act was notified vide the Ministry of Environment & Forests, GoI, New Delhi, notification no. 200, date 24th March '91, with the aim to provide immediate relief measures to the person affected by the accident occurring while handling any hazardous substance and for matters connected there with viz. processing, treatment, packaging, storage, transportation etc.

In this connection the Ministry, has  specified 179 hazardous  chemicals with quantities in column -3 of table -1. All industries which store or handle hazardous chemicals equal or beyond the regulatory quantity are required to take PLI policy under this Act.