Is there any Insurance Cover on Damages due to LPG?

Yes, there is Public Liability Insurance Policy for accidents involving LPG and every consumer of LPG cylinders from any of the authorized dealers is automatically covered under such policy that provides coverage under various headings. Public Liability Policy for Oil Industries is Third Party Insurance cover for persons and property that every Oil Marketing Company is mandatorily required to take and for this company pays heavy premiums and this covers claims for damages to even the licensed LPG distributors in the country, in addition to their customers. Due to lack of awareness among the masses claims under such insurance policy are very rarely made whereas hundreds of LPG cylinder related accidents are reported every year.

The significant features of the Public Liability Policy for Oil Industries issued by United Insurance Co. Ltd., for example, are as under:

• Legal Liability: Insurance Company indemnifies the insured against their legal liability to pay compensation including the claimant cost, fees and expenses anywhere in India in accordance with Indian law in the event of:
• Accidental bodily injury to any person
• Accidental damage to property
• Personal Accident Cover to Third Party and damage at authorised Customer’s registered premises:
• If any person sustains bodily injury solely and directly caused by accidental violent external and visible means arising from usage of LPG cylinder resulting in death or disablement.
• Liabilities per Year: ` I00 crore Personal Accident cover to Third Parties and Customers and Property Damage under the policy are:
• Medical Expenses Incurred: Not exceeding `00 lakh per person and ` 15.00 lakh per event
• Immediate Relief: up to ` 25,000 per Person
• Personal Accident: `00 lakh per Person Per Event
• Property Damage: ` I.00 lakh Per Event
• Per Year in Aggregate: ` 8 crore
• In the case of a claim, the amount is transferred to the Oil Company, who then remits the amount to the claimant

Any oversight; in the entire process of installation of new LPG connections, specially at homes of those who are unaware of precautions of its usage, storage, transportation, refilling and distribution of LPG cylinders or the safeguards to be observed in places where LPG is supplied through underground pipelines; may result in unprecedented damages, when dealing with something as volatile as LPG. Hundreds of reported or unreported gas cylinder explosions or leakages that caused explosions have caused heavy damage to life and property in the past.