Return to frontpage November 11, 2013 A Report by Sukumar Talpady, Mangalore LPG cylinder users are insured. LPG cylinder explosion is becoming common nowadays. Instances of death, injuries to homemakers, and damages to property are the direct result of these explosions. Most of the LPG users are not aware that insurance cover is available for such accidents, and therefore no claim is made on the gas agencies. LPG cylinder users must know that they are insured from the time they buy an LPG connection against accidents up to Rs. 40 lakh and up to Rs. 50 lakh in case of death. If an accident is caused by cylinder explosion where accessories used were original and ISI approved, then customers can claim damages. According to a Senior Manager of a leading public sector insurance company, Rs.70 is to be paid as maintenance charges for two years, and the gas agency will check whether the accessories used are genuine. Nationalised insurance companies collect crores of rupees as premium. Insurance companies and gas agencies must educate their customers on the cover available for the injuries and death caused due to cylinder explosion, by releasing advertisements in newspapers and electronic media from time to time. Afreen Sultana DC | A Report by L. Venkat Ram Reddy | 31st Aug 2013 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 nationalized 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.” Next: Initiative not taken to create awareness States: DID YOU KNOW? INSURANCE COVER OF Rs. 40 LACS BY LPG CYLINDER COMPANI Every year, India sees its fair share of LPG cylinder mishaps causing loss of life, limb and material assets. While most us know how to avoid accidents, few know that we have Rs. 40 lakh risk cover in case of damage due to cylinder explosion! “Around 10,000 incidents of cylinder explosions take place in different part of the country every year. Instances of death in such incidents are low, but cylinder explosions cause maximum damage to houses and properties, besides Injury to people,” informed Ishwar Lal Jat, chief fire officer, adding that most people dont claim this insurance amount in both cases !! In fact, most companies have not seen a single insurance claim from citizens in years. Given the level of awareness, its not a surprise. Customers are TOTALLY unaware! Most homemakers were completely shocked when DNA told them about the insurance cover available on LPG cylinders. “I never knew that such damages could be claimed from the gas agency,” said Varsha Singh. Leave alone simple homemakers, even well-read professionals seem to have little clue of this “hidden benefit”. “I did not know that we get insurance in case an LPG cylinder explodes. The staff at the gas agency never informed me,” said Amit Agarwal, a chartered accountant who recently got a gas connection. Ignorance pays only the insurers Every month, nationalised insurance companies get Crores of rupees as premium and this amount increases constantly with an ever rising number of ignorant consumers, each of whom are covered in part by the Oriental Insurance Company and the gas agency concerned. “We received Rs26 lakh as monthly premium from a single gas agency in Jaipur, a city which has more than 400 gas agencies,” an agency owner said. Adding that in the two decades since hes been running the gas agency, not a single customer has claimed insurance despite several mishaps. Everyone know the difference an asterix at top of a SALE poster can make. So goes for your eligibility to claim insurance. “The amount of insurance payable varies according to the installments deposited by the agency. Also, if an accident is caused by cylinder explosion where accessories used were original and ISI approved, then customers can claim damages; otherwise not,” said a senior manager with one of the leading government-run insurance companies. It is fairly easy and cheap to check if your accessories you use are acceptable. At Rs70 as maintenance charges for two years, the local gas agency will check whether the accessories in use are branded or not — an important condition while claiming insurance. In case of death due to explosion of gas cylinder, the victim has to appeal in the court demanding compensation. The court decides the amount of insurance according to age, salary and other conditions. Shirking responsibility It is Obvious that the government, insurance companies and the gas agencies gain from your ignorance. The claim was confirmed by a gas agency owner who said the information should be common knowledge since it is mentioned on the office notice board and it is mandatory to do so. Interestingly, the gas agency itself did not have a notice board in its office. The man also claimed that if a case is reported compensation is given. “However, no genuine cases have been found to give compensation as customer flout the norms,” he said, failing to mention the vital maintenance charges which would ensure consumers got their due!
Posted on: Sun, 17 Nov 2013 03:40:40 +0000
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