Public Liability Insurance Act | Collector Empowered To Suo Moto Invite Insurance Claims Upon Knowing Of Accident: Allahabad High Court

The Allahabad High Court has held that the Collector has the power to suo moto invite applications for insurance claims under the Public Liability Insurance Act, 1991 when he/she comes to know of an accident. Further, the Court held that Collector has the powers of the Civil Court and provisions of the Limitation Act are applicable to claims under the Public Liability Insurance Act, 1991. Observing that the Collector has been entrusted with powers of a Civil Court under Rule 5 (ii) (h) of the Public Liability Insurance Rules, 1991, Justice Subhash Vidyarthi held,“Section 5 of the Public Liability Insurance Act casts a statutory duty upon the Collector that upon coming to know about the occurrence of an accident, he should himself verify the occurrence of such accident and thereafter he should invite applications under Section 6(1) of the Act for claiming relief under the Act by making a proper publication. There is nothing on record to indicate that the Collector has performed this statutory duty by making any publication inviting applications after the accident in which the petitioners aged 9 and 7 years had lost their father.”Petitioner lost their father when they were minors to electrocution while working in the field. Petitioner's father earned around Rs. 20,000 per month. After the eldest child attainted majority, he applied for insurance claim under the Public Liability Insurance Act, 1991 before the Collector. However, the claim was rejected as time barred, i.e., filed beyond a period of 5 years from the death of the father. Petitioners approached the High Court. The Court observed that Section 5 of the Public Liability Insurance Act, 1991 provides that when the Collector comes to know of an accident within his jurisdiction, he “shall” verify the occurrence and call applications for insurance claims as provided under Section 6 of the Act vide publications. It noted that Section 6(3) provided that the application must be made within 5 years from the date of the accident. It also noted that Rule 5 of the Public Liability Insurance Rules, 1991 conferred the powers of a Civil Court on the Collector. It held that no provision of the Act or the Rules prohibited application of the Limitation Act in cases pertaining to the Public Liability Insurance Act, 1991. Holding the Limitation Act applicable in cases relating to Public Liability Insurance Act, the Court held that “As the petitioners were minors at the time of the accident in which they lost their father, they certainly have the right to file the application within a period of three years after attaining majority, as per the provisions contained in Sections 6 and 8 of the Limitation Act.”The Court held that the petitioners being aged 7 and 9 years at the time of their father's death were legally disabled to file an application for the insurance claim at that time. It held that it was the duty of the Collector to verify the incident and call for applications under Section 6(1) of the Act for claiming relief under the Act by making a proper publication.Accordingly, the Court allowed the writ petition and directed the Prescribed Authority/ Collector to decide the application of the petitioners on its merits within 3 months. Case Title: Vansh Nigam and another vs Workmens Compensation Commissioner/Collector Lakhimpur Kheri and 3 others 2026 LiveLaw (AB) 110Case Citation: 2026 LiveLaw (AB) 110Click Here To Read/Download Order

Public Liability Insurance Act | Collector Empowered To Suo Moto Invite Insurance Claims Upon Knowing Of Accident: Allahabad High Court

Upasna Agrawal

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