DC | L. Venkat Ram Reddy | 5 hours 12 min ago
Hyderabad: While there have been regular incidents of domestic LPG cylinders exploding, causing loss to life and property across the state, not a single affected consumer has claimed insurance so far.
The LPG cylinder explosion in the old city few days back claimed five lives, but no one seems to be aware of the insurance cover available for domestic LPG consumers in case of such mishaps. Clearly the state government, the civil supplies department or the gas agencies do not bother to inform consumers about this benefit.
Enquiries revealed that domestic LPG consumers are entitled to a risk cover of up to Rs 40 lakh in case of loss of life or damage to property due to cylinder explosions.
Though the city has witnessed quite a few such unfortunate incidents over the years, insurance companies or gas agencies have not seen a single claim in the last 20 years. The ignorance of the consumers is a blessing for nationalised insurance firms, which are pocketing crores of rupees every year paid as premiums.
Gas agencies in the city alone have paid nearly Rs 3 crore in premiums during the last 15 years, but not a single claim has been made by any affected consumer so far.
According to the Indian Oil Corporation website, “In the event of accident all registered LPG consumers are covered under an insurance policy taken by the PSU Oil Companies. In case of an accident, the customer must immediately inform the distributor in writing. The distributor then informs the concerned oil company and the insurance company about the same.
The distributor will offer assistance to the customer in completing the formalities of insurance claims arising out of the accident. All LPG distributors also have Third Party Liability Insurance to cover losses in the event of an accident.”
Meanwhile, the HPCL website states, “All registered HP GAS consumers are insured against outcome of an accident at their registered premises due to LPG. Details are available with all the distributors and the Customer Service Cell. HPCL has also taken a Public Liability Insurance Policy.”
Initiative not taken to create awareness
There has been no initiative either by the government, insurance firms, OMCs or gas agencies to create awareness among LPG consumers regarding the availability of insurance coverage in case of LPG cylinder explosions.
As per the norms, all gas agencies have to display a notice prominently at their office informing about insurance coverage for LPG consumers. However, none of the agencies follow this.
The government, which talks about ex gratia payments only when incidents of LPG cylinder explosions occur, has also not bothered to take up a publicity campaign to create awareness on risk coverage.
Insurance agents say that affected consumers will be eligible to claim damages only in those cases of explosions where original accessories such as gas stoves, pipes, regulators etc. have been used. Otherwise the insurance firms will reject such claims.
“Each household with an LPG connection is covered in part by a nationalised insurance firm and the gas agency concerned. However, majority of the consumers are unaware of this. Despite suffering losses on account of cylinder explosions, they do not approach for insurance claims,” said P. Venkateshwarlu, an insurance agent.
It’s tough to claim insurance
Gas agencies say that though consumers are entitled to claim insurance of up to Rs 40 lakh in case gas stoves or accessories malfunction causing death or injury, it is difficult to claim even Rs 25,000. This is because the claim is only paid out if the equipment are ISI certified and changed periodically.
Since it is difficult for consumers to prove that the accessories they used were ISI certified and were changed periodically, the insurance companies get away with denying the claims.
“We have been paying premium for the last 20 years. Each gas agency pays premium ranging from Rs 10,000 to Rs 25,000. Not even a single claim has been given to any consumer so far. Even the consumers do not apply for claims.
In this way, the insurance firms earned more than Rs 2 crore in premium from gas agencies in the last two decades, without paying out any claims,” said D. Ashok Kumar, president, Greater Hyderabad LPG Dealers’ Association. It is very important for consumers to use ISI certified accessories including lighter to claim the insurance and they should also be serviced and changed periodically, especially gas pipes.
States: Andhra Pradesh
Hyderabad: While there have been regular incidents of domestic LPG cylinders exploding, causing loss to life and property across the state, not a single affected consumer has claimed insurance so far.
The LPG cylinder explosion in the old city few days back claimed five lives, but no one seems to be aware of the insurance cover available for domestic LPG consumers in case of such mishaps. Clearly the state government, the civil supplies department or the gas agencies do not bother to inform consumers about this benefit.
Enquiries revealed that domestic LPG consumers are entitled to a risk cover of up to Rs 40 lakh in case of loss of life or damage to property due to cylinder explosions.
Though the city has witnessed quite a few such unfortunate incidents over the years, insurance companies or gas agencies have not seen a single claim in the last 20 years. The ignorance of the consumers is a blessing for nationalised insurance firms, which are pocketing crores of rupees every year paid as premiums.
Gas agencies in the city alone have paid nearly Rs 3 crore in premiums during the last 15 years, but not a single claim has been made by any affected consumer so far.
According to the Indian Oil Corporation website, “In the event of accident all registered LPG consumers are covered under an insurance policy taken by the PSU Oil Companies. In case of an accident, the customer must immediately inform the distributor in writing. The distributor then informs the concerned oil company and the insurance company about the same.
The distributor will offer assistance to the customer in completing the formalities of insurance claims arising out of the accident. All LPG distributors also have Third Party Liability Insurance to cover losses in the event of an accident.”
Meanwhile, the HPCL website states, “All registered HP GAS consumers are insured against outcome of an accident at their registered premises due to LPG. Details are available with all the distributors and the Customer Service Cell. HPCL has also taken a Public Liability Insurance Policy.”
Initiative not taken to create awareness
There has been no initiative either by the government, insurance firms, OMCs or gas agencies to create awareness among LPG consumers regarding the availability of insurance coverage in case of LPG cylinder explosions.
As per the norms, all gas agencies have to display a notice prominently at their office informing about insurance coverage for LPG consumers. However, none of the agencies follow this.
The government, which talks about ex gratia payments only when incidents of LPG cylinder explosions occur, has also not bothered to take up a publicity campaign to create awareness on risk coverage.
Insurance agents say that affected consumers will be eligible to claim damages only in those cases of explosions where original accessories such as gas stoves, pipes, regulators etc. have been used. Otherwise the insurance firms will reject such claims.
“Each household with an LPG connection is covered in part by a nationalised insurance firm and the gas agency concerned. However, majority of the consumers are unaware of this. Despite suffering losses on account of cylinder explosions, they do not approach for insurance claims,” said P. Venkateshwarlu, an insurance agent.
It’s tough to claim insurance
Gas agencies say that though consumers are entitled to claim insurance of up to Rs 40 lakh in case gas stoves or accessories malfunction causing death or injury, it is difficult to claim even Rs 25,000. This is because the claim is only paid out if the equipment are ISI certified and changed periodically.
Since it is difficult for consumers to prove that the accessories they used were ISI certified and were changed periodically, the insurance companies get away with denying the claims.
“We have been paying premium for the last 20 years. Each gas agency pays premium ranging from Rs 10,000 to Rs 25,000. Not even a single claim has been given to any consumer so far. Even the consumers do not apply for claims.
In this way, the insurance firms earned more than Rs 2 crore in premium from gas agencies in the last two decades, without paying out any claims,” said D. Ashok Kumar, president, Greater Hyderabad LPG Dealers’ Association. It is very important for consumers to use ISI certified accessories including lighter to claim the insurance and they should also be serviced and changed periodically, especially gas pipes.
States: Andhra Pradesh
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