LPG users, do you know you’re insured for Rs.10L ?

• Up to Rs 10 lakh payable in case of accident
• But riders ensure victims’ kin are paid nil or pittance
• There has been no single claim in the last one decade
• Compensation only if mishap at time of ‘installation’
• ISI parts must have been used and changed periodically
• No move by govt, agencies, oil cos to spread awareness

Hyderabad: Every LPG subscriber is insured for Rs 10 lakh but hardly anyone is aware of it. Every household with an LPG connection is covered by an insurance firm but due to ignorance of the consumers, insurance companies are pocketing crores of rupees in the form of premium. While it is mandatory for gas agencies to display a board on the benefits of insurance, none of the agencies follows the rule. Though, the consumers do not pay the premium, their gas agency pays anywhere from Rs 15,000 to Rs 30,000 per annum to nationalised insurance companies. There are about 100 gas agencies in the twin cities who together pay up Rs 20-30 lakh per year to insurance companies. Though consumers are entitled to claim insurance, it is not easy as LPG distributors have third party liability insurance to cover the losses in the event of an accident.

D Ashok Kumar, president of Greater Hyderabad LPG Dealers’ Association, says, “The claim can be made only when there is an accident during the time of installation as per the third party liability insurance. The oil company’s insurance limit is Rs 25,000. This amount is also given only if the accessories are ISI-certified and changed periodically.” The probability of receiving a claim is also remote as it is not possible for consumers to prove that the equipment is changed periodically. Ashok Kumar says consumers themselves should opt for insurance as it would cost just Rs 120 per annum.

There has been no single claim in the last decade as consumers are not aware of the provision and none of the concerned parties – be it the civil supplies department, gas agencies and oil marketing companies – makes an effort to spread awareness among the people.

When a homemaker, Sudha Rani of Bagh Amberpet was told about the insurance she was surprised. She said, “It is the duty of the government to make sure that the consumers get the benefit. All gas agencies should be made to put up boards and take up a campaign.”

Asked why there are hardly any claims, Ingole, state-level coordinator for oil companies, says, “All three oil companies together pay the insurance premium. One can call it a common insurance premium.

The claims depend on several factors; the customer has to be genuine and the accident should have been at a bonafide place. In several instances, it is noticed that the ownership is in a different name.”