Public Liability Insurance: What It Covers And Why It Matters

What happens when you suffer an injury in a public retail place, such as a mall? If a shopper suffers injury within the premises of a mall, the question of legal responsibility hinges upon the specific locus of the incident and the nature of the hazard that caused the harm. Under the doctrine of occupiers’ liability, both the mall management and the individual retail tenant owe a duty of care to ensure that their respective premises are maintained in a reasonably safe condition for visitors and invitees. “If the injury occurs within the confines of a specific store, the liability would, in most cases, rest squarely upon the store operator, particularly where the injury arises from store-specific negligence, such as uncleaned spillages or poorly maintained displays. Conversely, where the injury occurs in a common area, such as the food court, escalators, stairways, or parking zones, the mall management would be the primary party responsible,” says Tushar Kumar, advocate, Supreme Court of India.

However, in certain factual scenarios where there exists a shared duty or overlapping control (for instance, the approach to a store entrance or areas maintained by third-party facility contractors), liability could be joint and several, and courts have not hesitated in holding both the mall and the tenant accountable, particularly where the standard of reasonable care has been demonstrably breached.

Public Liability Insurance 

Under Indian law, most malls and commercial establishments are expected to have public liability insurance under the Public Liability Insurance Act, 1991, especially if they are handling hazardous substances, but even otherwise, general public liability policies are common. “These policies indemnify the premises owner against claims for bodily injury or property damage to third parties due to negligence. So, if a consumer slips, trips, or suffers injury due to unsafe conditions, wet floors without signage, poor lighting, or faulty escalators, the insurance can be triggered, provided negligence is established,” says Raheel Patel, partner, Gandhi Law Associates.

This insurance is designed not merely to protect the insured (i.e., the mall or store) from the financial consequences of litigation, but to guarantee that victims of negligence are compensated expeditiously and adequately, regardless of the financial solvency of the establishment.

“While the injured consumer does not directly interact with the insurer, such insurance allows for smoother and often out-of-court settlements, and may also cover legal defence costs, interim medical expenses, and damages awarded by a court of law. The presence of such insurance, however, does not absolve the owner or occupier from their underlying legal duty, which remains primary and non-delegable under Indian tort law,” says Kumar.

What Should A Victim Do In Case Of Injury 

“They should preserve evidence in the form of photos or videos. If there has been an injury requiring treatment at a hospital, the medical records should be kept. Along with the evidence and documentation, a legal notice should be sent to the mall seeking compensation,” says Hari Radhakrishnan, expert, IBAI.

Filing a complaint with the State or District Consumer Disputes Redressal Commission may be appropriate if there’s a clear service deficiency. “But ultimately, compensation claims often hinge on showing that the injury was foreseeable and preventable and that the mall or store failed in its duty of care,” says Patel.

It is not necessary, but it is desirable to have the notice drafted by a lawyer. “It is possible that the mall management and/or insurance company would be prepared for an out-of-court settlement, in which case the claim can be processed fast,” says Radhakrishnan.