Is there any Insurance Cover on Damages due to LPG?

Last Updated on April 26, 2017 by Bharat Saini

Indeed, there is Public Liability Insurance Coverage available for incidents related to LPG, and any customer of LPG cylinders from an authorized dealer is covered under the Public Liability Policy for LPG. The Policy can cover the insured under several headings. The Public Liability Policy for oil industries is a third-party insurance for persons and property, a requirement for every oil marketing company. The oil marketing companies pay considerable premiums which cover licensed LPG distributors and their clients, and unfortunately, the public is not aware of this coverage; thus, the insured hardly file claims even for the hundreds of LPG cylinder incidents that occur yearly.

The following are some of the basic features of the Public Liability Policy for the Oil Industry offered by United Insurance Co. Ltd.:

• Legal Liability: To indemnify the insured for legal liability to pay compensation, including costs, fees, and expenses of the claimant regarding accidental bodily injury to any person and unintentional damage to property anywhere in India by Indian Law.
• Personal Accident Cover of Third Party and Damage at Registered Customer’s Authorized Premises.
• If bodily injury to any person is sustained, solely and directly caused by accidental, violent, external and visible means in the use of an LPG Cylinder which caused death or disablement.
• Limit of liabilities for any one year: ₹100 crore limit for Personal Accident coverage of Third-Party and Customers. Property damage coverage under the policy limits:
• Medical Expenses incurred do not exceed ₹1.00 lakh per person and ₹15.00 lakh in any event.
• Immediate Relief is a limit of ₹25,000 per person.
• Personal Accident is limited to ₹10.00 lakh per person per event.
• Property Damage is listed at ₹1.00 lakh per event.
• The per year aggregate for all claims is ₹ 8.00 crore.
• With any claim covered under the policy, this amount is paid to the oil company, which pays the claimant the amount.

Any mistake in the installation of new LPG connections, especially at residences of people who do not know safety measures in usage, storing, transporting, refilling and distributing LPG cylinders or at service stations where LPG is supplied through underground pipes, can lead to catastrophic consequences when dealing with an item as volatile as LPG. We have read or experienced hundreds of gas cylinder explosion and gas leak explosive incidents, which have caused a significant impact on life and properties.