To claim insurance in LPG-related accidents, consumers should inform dealers as soon as possible

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Though LPG is the most preferred kitchen fuel around the country, it remains a potentially dangerous thing that might ignite a fire and the cylinders can even explode if handled without care causing injury to property and loss of lives.

Though most consumers are not aware about it, oil marketing companies and distributors of LPG cylinders cover the consumers with third party insurance.

“In any case of accident, consumers must inform his/her distributor as soon as possible. This is crucial to expedite the process of claiming insurance in case of loss to life or property,” said Bijan Bihari Biswas, president, Indane Distributors Association in West Bengal.

Officers of the West Bengal Consumer Affairs department also admitted that there is not enough awareness among consumers about third party insurance cover.

Outlining the steps that a consumer must do in the unfortunate instance of any such incident, Biswas said the family of the consumer must bring it to the knowledge of the distributor apart from informing the police. Often the fire brigade is also involved if there is an incident of fire.

“I want to assure the consumers that they won’t have to do paperwork for claiming the insurance cover. It is the responsibility of the LPG distributors and the oil marketing companies,” said Biswas.

“In fact, consumers don’t have to go through the insurance claim process at all. The consumer must provide the distributor documents such as police FIR, reports/documents from hospitals, post mortem report, death certificate, inquest report and fire brigade report, if any.”

“The consumer/insured shall give written notice to the company as soon as reasonably practicable of any claim up to last date of policy period or extended reporting period but not exceeding 90 days from the date of Incident and shall give all such additional information as the Company may require. Every claim, write, summons, or process and all document relating to the event shall be forwarded to the company immediately they are received by the Insured,” reads the third party public liability insurance policy for LPG consumers of Indian Oil.

Distributors said that the premium for the insurance is paid jointly by the oil marketing companies and them.

Consumers are also entitled to get an immediate relief of Rs 25,000 in case of any accident where the victim needs hospitalisation that would be adjusted against the final insurance claim.

“Immediately on occurrence of an accident requiring hospitalisation of victim(s), insurance will authorize an immediate relief of up to Rs 25,000 on confirmation of liability and production of “Immediate Relief Certificate” by the authorized representative of the insured. The amount so paid will be subject to adjustment in the final settlement of the claim,” states the insurance policy.

In the event of death, there is a personal accident cover of Rs 6 lakh per person, medical expenses cover of Rs 2 lakh per person and a similar amount for damage of property.

After such accidents officers from the oil marketing companies visit the site of accident to assess loss of property or any other loss.

Later, officials from the insurance company also make similar visits.

Biswas also said that they have seen from experience in LPG accident cases the police are usually prompt in extending help and documentation.

According to a reply by Union minister for petroleum and natural gas Dharmendra Pradhan in the Rajya Sabha, the number of LPG related accidents were 929 in 2016-17 and 1,151 in 2017-18. The fatalities were 267 and 292 respectively and the amounts paid in compensation were Rs 22.83 crore and Rs 17.39 crore in those two years.