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  • Insurance Coverage for LPG Consumers

    Rs.40 Lacs worth of Insurance Coverage for LPG Consumers?

    Consumers of liquefied petroleum gas (LPG) can claim insurance through their LPG Insurance Policy to gain coverage for injuries or accidental deaths if a gas cylinder bursts. Media reports suggest that consumers who face any accidents due to LPG can claim insurance coverage to the extent of Rs.40 lacs. However, the coverage provided may not be Rs.40 lacs as reported in case of accidents or deaths. Moreover, special coverage or insurance policies for individual LPG consumers is not offered by oil marketing companies.

    Extent of coverage:

    The oil marketing companies (OMCs) in India, i.e., HPC, Indian Oil, and BPC, are responsible for taking insurance policy for coverage against LPG accidents. This includes third party liability cover for damages suffered by individuals and property damages. Additionally, OMCs also take the comprehensive insurance policy named ‘Public Liability Policy for Oil Industries’.

    • These insurance plans are public liability policies and are not taken in the name of the individual consumer of LPG. Hence, there is no premium collected from the customer.
    • The claim is submitted to the oil company and the payout is made to the beneficiary.
    • The comprehensive insurance plan offers coverage for the following:
      • Legal liability
      • Personal accident cover to a third party. Coverage is also offered for property damages at the customer’s premises
    • The limits on the legal liability part of the coverage are as follows:
    For each event Rs.50 lakh
    For each person Rs.10 lakh
    For each year Rs.100 crore

    The limits on the Personal Accident and property damage cover are as follows:

    Personal Accident Rs.5 lakh for each person per event for death
    Medical expenditure Rs.15 lakh per event (Maximum amount of Rs.1 lakh per person is offered with immediate relief up to Rs.25,000 per individual)
    Property damage Up to Rs.1 lakh for each event at the authorised premises of the customer
    Per year in aggregate Rs.8 crore

    Procedure to make an insurance claim if there’s a fire:

    • If there is an accident due to LPG, the consumer should immediately bring it to the distributor’s notice in writing. The insurance company and the oil company will then be informed by the distributor about the same. There is no need to contact the insurance company directly or apply for a claim.
    • If there is a debt arising out of an LPG accident, consumers must furnish the originals of inquest report/coroners report, death certificates and post-mortem reports, as applicable, to the oil company.
    • If there are injuries arising out of an LPG accident, consumers must furnish the doctor’s prescriptions and medical bills in original to support the purchase of medicines. The discharge card along with other hospitalisation-related documents must also be submitted in original.
    • If there is damage to property arising out of an LPG accident, a surveyor will be appointed by the insurance company to assess the loss incurred by the registered premises.
    • The local distributor must be contacted to assist you in finishing up all the formalities associated with an insurance claim.
    • The ISI-mark accessories, like gas pipe and lighter must be used to make sure that the company will not reject your claim. Maintenance checks by your gas dealer are recommended at regular intervals of time.
    • All claims are settled on the basis of merit of each incident. The insurance company will take the claim settlement decision as per the terms and conditions of the insurance policy.

    The number of injuries and deaths related to LPG is increasing each year, and oil distributors as well as oil marketing companies shell out crores of rupees towards insurance claims. However, due to lack of awareness regarding the LPG insurance policy, a large number of households incur losses without cover. So go ahead and spread the word and help victims of LPG accidents receive the coverage they deserve.

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