Sections 5 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 5 to 7 are the claims machinery of the PLI Act. The Collector verifies that an accident has occurred and publicises it; a victim, property owner, legal representative or agent applies to the Collector within five years; and the Collector holds a summary inquiry and makes an award. The Jan Vishwas Act, 2023 added a claim for restoration of property in section 6 and a power in section 7 to fund restoration of environmental damage from the Environment Relief Fund.
This article is current as amended up to the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force for this Act from 1 April 2024). Later amendments and notifications should be checked. The Schedule of relief rates was omitted by that Act, and this article states no relief amount; relief is as the Act and rules provide. If you are an owner facing a claim or a claimant preparing one, our legal consultation team can help.
The Collector having jurisdiction verifies an accident and publicises it, inviting applications (section 5). An application may be made by the injured person, the owner of damaged property, the legal representatives of a deceased person, or an authorised agent, and no application is entertained unless made within five years of the accident (section 6). The Collector gives notice to the owner, hears the parties, holds an inquiry and makes an award (section 7). The insurer deposits within thirty days of the award's announcement, to the extent of its liability.
Section 5: verification and publication by the Collector
"Whenever it comes to the notice of the Collector that an accident has occurred at any place within his jurisdiction, he shall verify the occurrence of such accident and cause publicity to be given in such manner as he deems fit for inviting applications under sub-section (1) of section 6."
The Collector acts on notice of an accident and need not wait for a claim. The manner of publicity is left to him. "Collector" is defined in section 2(b) as the Collector having jurisdiction over the area in which the accident occurs; see sections 1 and 2.
Section 6: the application for relief
Section 6(1). An application for claim for relief may be made:
| Clause | Applicant |
|---|---|
| (a) | The person who has sustained the injury |
| (b) | The owner of the property to which the damage has been caused |
| (c) | Where death has resulted, all or any of the legal representatives of the deceased |
| (d) | Any agent duly authorised by such person, owner or legal representatives |
The proviso: where all the legal representatives of the deceased have not joined in the application, it "shall be made on behalf of or for the benefit of all the legal representatives" and those who have not joined "shall be impleaded as respondents".
Section 6(1A), inserted in 2024. "Where any damage has been caused to any public property or private property due to manufacture, processing, treatment, package, storage, transportation, use, collection, destruction, conversion, transfer or such other processes, of such hazardous substance, an application for claim for restoration of the property may be made by the owner of the property or such other person, as may be prescribed, to the Collector."
Section 6(2). Every application is made to the Collector, in the prescribed form, with the prescribed particulars and documents.
Section 6(3). "No application for relief shall be entertained unless it is made within five years of the occurrence of the accident." The limit is a bar on entertaining the application and runs from the occurrence of the accident.
Section 7: the award of relief
Section 7(1). On receiving an application, the Collector shall, "after giving notice of the application to the owner and after giving the parties an opportunity of being heard, hold an inquiry into the claim or, each of the claims, and may make an award determining the amount of relief which appears to him to be just and specifying the person or persons to whom such amount of relief shall be paid".
Section 7(2). The Collector shall arrange to deliver copies of the award to the parties "expeditiously and in any case within a period of fifteen days from the date of the award".
Section 7(3). When an award is made:
- (a) the insurer, who is required to pay any amount in terms of the award and to the extent specified in section 4(2B), shall, "within a period of thirty days of the date of announcement of the award", deposit that amount in the manner the Collector directs;
- (b) the Collector shall arrange to pay from the Relief Fund, in terms of the award and in accordance with the scheme made under section 7A, to the persons concerned "such amount as may be specified in that scheme"; and
- (c) the owner shall, within such period, deposit such amount in such manner as the Collector may direct.
Section 7(4). In holding an inquiry the Collector may, subject to any rules, "follow such summary procedure as he thinks fit".
Section 7(5). The Collector has all the powers of a Civil Court for taking evidence on oath, enforcing attendance of witnesses, compelling discovery and production of documents and material objects, and other prescribed purposes, and is deemed a Civil Court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. The Bharatiya Nagarik Suraksha Sanhita, 2023 has replaced the Code of Criminal Procedure, 1973.
Section 7(6). If the insurer or owner against whom the award is made fails to deposit within the period under sub-section (3), the amount is recoverable from the owner or the insurer, as the case may be, as arrears of land revenue or of public demand.
Section 7(7). A claim "shall be disposed of as expeditiously as possible and every endeavour shall be made to dispose of such claim within three months of the receipt of the application". This is an endeavour and not a hard limit.
Section 7(8). Where an owner is likely to remove or dispose of his property to evade payment of an award, the Collector may, in accordance with rules 1 to 4 of Order XXXIX of the First Schedule to the Code of Civil Procedure, 1908, grant a temporary injunction to restrain that act.
Section 7(9), inserted in 2024. "Where the environment is affected or damaged due to manufacture, processing, treatment, package, storage, transportation, use, collection, destruction, conversion, transfer or such other processes, of such hazardous substance, the Central Government may, on an application made by the Central Pollution Control Board or the State Pollution Control Board, as the case may be, allocate the fund from the Environmental Relief Fund for restoration of the damage so caused in the manner as may be prescribed." The Fund is explained in sections 7A and 8.
The claim journey
| Step | Who | Time or condition as printed | Section |
|---|---|---|---|
| Verification and publicity | Collector | On notice of the accident | 5 |
| Application | Injured person, property owner, legal representatives, agent | Within five years of the accident | 6(1), (3) |
| Notice and hearing | Collector | Notice to the owner; hearing to the parties | 7(1) |
| Award | Collector | Endeavour within three months of receipt | 7(1), (7) |
| Copies of award | Collector | Within fifteen days of the award | 7(2) |
| Insurer deposit | Insurer | Within thirty days of announcement | 7(3)(a) |
| Recovery | Collector | Arrears of land revenue | 7(6) |
The Environment (Protection) Act separately requires intimation of an accidental discharge; see section 9 of the EP Act. For a general guide on claims see PLI Act relief claims.
Practical points
- Claimants: file within five years and include all legal representatives in a death claim.
- Owners: respond to the Collector's notice and use the hearing.
- Insurers: track the thirty-day deposit period.
- Check the rules for the form, documents and scheme amounts; this article states no relief figure.
An example
A fire involving a notified hazardous substance at Ravi Pesticides Limited's godown injures a neighbouring shopkeeper. The Collector verifies the accident and publicises it. The shopkeeper applies within five years in the prescribed form. The Collector gives notice to the company, hears both sides under summary procedure and makes an award. The insurer deposits its share within thirty days of the award's announcement, and the company deposits the amount directed to it.
Need help with a claim or a defence?
A relief claim is decided on the record before the Collector. Our legal consultation team can help claimants prepare the application and owners prepare their response and compliance records.
Key takeaways
- The Collector verifies and publicises an accident and invites applications.
- Applications must be made within five years of the accident.
- Since 2024 a claim for restoration of public or private property may also be made to the Collector.
- The Collector issues notice, hears the parties and awards relief by summary procedure; the Act asks that claims be disposed of within three months where possible.
- The insurer deposits within thirty days of the award's announcement, and unpaid amounts are recoverable as arrears of land revenue.
Read next
- Sections 7A and 8: the Environment Relief Fund and other compensation
- Sections 3 and 4: no-fault liability and compulsory insurance
- PLI Act relief claims
- Section 9 of the EP Act: accident intimation
Disclaimer: Based on the Environment (Protection) Act, 1986, the Air (Prevention and Control of Pollution) Act, 1981 and the Public Liability Insurance Act, 1991 as amended by the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force for these Acts from 1 April 2024), the Water (Prevention and Control of Pollution) Act, 1974 as amended by its Amendment Act of 2024 (which applies only in the States and Union territories it names and in States that adopt it), and the National Green Tribunal Act, 2010 as amended by the Tribunals Reforms Act, 2021, as consulted on 3 October 2026. Later amendments, rules and notifications should be checked. This article is general information, not legal advice; check the official text before acting.