LPG Consumers are Covered Under Insurance of 40 Lacs: Facts

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DID YOU KNOW?

LPG consumers are covered under insurance of 40 lacs- please share this information
Few know that we have Rs. 40 lac risk cover in case of damage due to cylinder explosion!

Every year, India sees its fair share of LPG cylinder mishaps, causing loss of life, limb and material assets. While most of us know how to avoid accidents, few know that we have Rs.40 lac risk cover in case of damage due to cylinder explosion!
“Around 10,000 incidents of cylinder explosions take place in different part of the country every year. Instances of death in such incidents are low, but cylinder explosions cause maximum damage to houses and properties, besides Injury to people,” said Ishwar Lal Jat, chief fire officer, adding that most people don’t claim this insurance amount in both cases!

In fact, most companies have not seen a single insurance claim from citizens in years. Given the level of awareness, it’s not a surprise. Customers are TOTALLY unaware

Most homemakers were completely shocked when DNA told them about the insurance cover available on LPG cylinders. “I never knew that such damages could be claimed from the gas agency,” Leave alone simple homemakers, even well-read professionals seem to have little clue of this “hidden benefit”. “I did not know that we get insurance in case an LPG cylinder explodes. The staff at the gas agency never informed me,” said Amit Agarwal, a chartered accountant who recently got a gas connection.

Turn to the court

Bhanwar Singh Chauhan, a senior advocate, confirmed that customers are insured from the time they buy an LPG connection. “If a customer is kept in the dark, they can complain about it in the consumer court and even file a petition against the agencies concerned for withholding the information,” Insurance agents said it is very easy to get the claim – informs cops and gas agency, wait for survey by insurance officials and soon you will get the claim amount.

All it means that if you are a LPG user your life is insured in case of an accident for up to Rs 40lacs. In case of an accident you can claim up to Rs 50 lacs incl damages and hospitalization charges.
The LPG companies and the govt are conveniently not advertising this order deliberately. “In the event of accident. All registered LPG consumers are covered under an insurance policy taken by the PSU Oil Companies.”In case of the unfortunate event of an accident, the customer must immediately inform the distributor in writing. The distributor then informs the concerned Oil Company and the Insurance Company about the same. The distributor will offer assistance to the customer in completing the formalities of insurance claims arising out of the accident.
In addition to the above, all LPG distributors also have Third Party Liability Insurance to cover losses in the event of an LPG accident.”

Picture about LPG Consumers are Covered Under Insurance of 40 Lacs — LPG Consumers are Covered Under Insurance of 40 Lacs

Analysis:

The message shared widely online especially on social media states that LPG consumers in India are covered under insurance of 40 lacs in case of damage due to cylinder explosion. Yes it is a fact, but does not give complete information.

About LPG Gas Cylinder Accidental Insurance

Most of us know how to avoid accidents using LPG gas cylinders, but very few are aware that we have up to Rs. 40 lakh risk cover in case of loss of life or damage due to cylinder explosion! In the event of accident all registered LPG consumers are covered under an insurance policy taken by the PSU oil companies. A senior advocate, Bhanwar Singh Chauhan confirmed that customers are insured from the time they buy an LPG connection. As per rules, this information should be the common knowledge of LPG consumers, and it is mandatory to mention it on the notice board of the gas agencies. Unfortunately, most agencies do not follow this rule for obvious reasons. The LPG companies and the government are not advertising this because they do not like to shell out more money on a subsidized item.

Ishwar Lal Jat, a chief fire officer, said that cylinder explosions cause maximum damage to houses and commercial institutions, but most people do not claim the insurance amount. P. Venkateshwarlu, an insurance agent says, “Each household with an LPG connection is covered in part by a nationalized insurance firm and the gas agency concerned. However, majority of the consumers are unaware of this. Despite suffering losses on account of cylinder explosions, they do not approach for insurance claims“.

Conditions Apply

A senior manager with one of the leading government-run insurance companies describes the insurance saying, “The amount of insurance payable varies according to the installments deposited by the agency. Also, if an accident is caused by cylinder explosion where accessories used were original and ISI approved, then customers can claim damages; otherwise not“. The gas stoves, pipes, regulators, lighter and all should be ISI certified and also serviced and changed periodically. Your local gas agency will check this for the maintenance charges you pay them. You can read all the customer obligations in detail in LPG section of IOCL document here.

In case of accidents due to explosion of LPG gas cylinder, insurance agents say it is easy to get the claim — inform cops and gas agency, and wait for survey by insurance officials to complete. In case of death, the case has to be appealed in the court demanding compensation, following which the court decides the amount of insurance according to age, salary and other conditions.

In addition to the above insurance, as stated in the aforementioned IOCL document, all LPG distributors also have Third Party Liability Insurance to cover losses in the event of an accident.