LPG Cylinder Blast: Are You Aware of the Hidden ₹50 Lakh Insurance on Your Gas Connection?
Did you know your LPG gas cylinder comes with automatic insurance up to ₹50 lakh? Learn about the hidden coverage for accidents, property damage, and how to claim it.
NEW DELHI — Millions of households across India are unaware that their domestic LPG connection automatically includes a substantial insurance policy, offering financial compensation of up to ₹50 lakh in the event of an accident. This hidden safety net is provided at no extra cost to the consumer but remains one of the least-known consumer rights in the country.
Every time a customer books a gas cylinder from an authorized dealer like Indane, HP Gas, or Bharatgas, they are enrolled in a Public Liability Insurance Policy. This policy is designed to provide financial relief to victims and their families for losses caused by gas leaks or cylinder explosions.
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Understanding Your Insurance Coverage
The insurance covers personal injury, death, and property damage. While the exact amounts can vary slightly based on the insurer for the year, the general framework provides significant coverage.
- Personal Accident Cover: In the unfortunate event of a fatality, the policy offers ₹6 lakh per person.
- Total Family Compensation: The maximum compensation for a single incident can go up to ₹50 lakh for the entire family.
- Medical Expenses: The policy covers medical costs up to ₹30 lakh per event, with a cap of ₹2 lakh per person.
- Property Damage: Coverage for damage to the customer’s registered property is provided up to ₹2 lakh.
- Immediate Relief: An immediate relief of ₹25,000 per person is also available for initial expenses.
Despite these benefits, a major awareness gap means that families affected by such accidents often fail to claim the compensation they are entitled to.
How to File a Claim After an Accident
If an accident involving an LPG cylinder occurs, it is crucial to follow a specific procedure to ensure a successful claim.
Immediate Steps to Take
- Inform the Distributor: Immediately contact your authorized LPG distributor in writing.
- Contact Emergency Services: Call the police to file an FIR and, if needed, the fire brigade.
- Use the Helpline: Call the 24×7 emergency LPG helpline at 1906 for immediate assistance and to register the incident.
Documentation and Investigation
After being notified, the distributor will inform the respective oil company and the insurance provider. An investigation team will visit the site to assess the cause and extent of the damage.
To process the claim, you will need to submit the following documents:
- A copy of the police FIR.
- Medical bills, prescriptions, and discharge summary for injured persons.
- In case of death, the post-mortem report and death certificate.
- An assessment report for property damage.
Key Policy Exclusions to Know
The insurance is comprehensive but has important limitations. Compensation may be denied under certain conditions:
- Non-LPG Cause: The accident must be primarily caused by the LPG cylinder or equipment. If a fire starts from another source and engulfs the cylinder, the claim may be rejected.
- Unauthorized Equipment: Using non-standard or uncertified equipment, pipes, or stoves can invalidate the policy.
- Illegal Cylinders: The coverage does not apply to illegally refilled cylinders or those purchased from unauthorized dealers.
Recent court rulings and directives have emphasized the need for oil marketing companies to increase public awareness about this insurance. Authorities are urging companies to print policy details on gas booking receipts to ensure every consumer knows their rights.
1. Do I need to pay a premium for this insurance?
No. This Public Liability Insurance is provided automatically and free of cost to all registered customers by the oil marketing companies (like Indane, HP Gas, and Bharatgas) when you get a legal LPG connection.
2. How much compensation is available in case of an accident?
The policy provides up to ₹6 lakh for death per person, up to ₹30 lakh for medical expenses per incident, and up to ₹2 lakh for property damage. The total compensation for a single incident can reach up to ₹50 lakh for the entire family.
3. What is the first thing I should do if an LPG accident occurs?
You must immediately inform your authorized LPG distributor in writing. You should also file an FIR with the local police and call the 24×7 emergency helpline at 1906 to report the incident.
4. Who is covered under this insurance policy?
The insurance covers all registered LPG customers, their family members, and any third party affected by an accident at the registered address, as long as the incident is directly caused by the LPG cylinder.
5. Under what circumstances can a claim be rejected?
A claim can be rejected if the accident was not primarily caused by the LPG cylinder, if uncertified or non-standard equipment (like pipes or stoves) was used, or if the cylinder was illegally refilled or sourced from an unauthorized dealer.
