Using LPG at home is convenient and widely common in Indian households. But with it comes a certain level of risk. You've probably heard of incidents where gas leaks led to accidents. That's where public liability insurance for LPG customers comes in. This cover ensures that if any accidental damage or injury occurs due to LPG usage, you're not left facing massive financial liabilities.
This insurance protects you from third-party claims caused by accidents involving LPG cylinders. In case of unfortunate events like explosions, fires or injuries to neighbours or passers-by due to a gas leak, this policy can come to your rescue.
Let's understand how this works and why it matters.
Public liability for LPG customer
Public liability insurance is a policy that covers a person or business against legal liabilities arising due to third-party injuries or property damage.
Here's how public liability insurance for LPG customers works:
- It covers legal liabilities if an LPG-related accident causes harm to an individual or damages their property.
- It includes compensation for injuries or deaths resulting from LPG accidents.
- It helps cover medical expenses and even legal costs if you're sued.
The LPG distributor or supplier generally includes this policy to protect customers from such events. As per the Public Liability Insurance Act of 1991, it is mandatory for companies handling hazardous substances like LPG to have such coverage.
For the customer, this means an added layer of protection. Even though the chance of a severe accident is rare, it's good to know you're covered.
This policy is different from personal accident cover. Here, it focuses on third-party damage and not on the policyholder directly.
Policies like liability insurance and liability insurance coverage are broader in nature. They are a type of insurance that provides coverage to individuals or businesses from financial loss due to legal liabilities that arise from injuries, accidents or damages caused to others. It helps cover the cost of legal fees, settlements or judgments if the policyholder is found responsible for harm or damage to someone else's property or well-being.
Coverage under public liability insurance for LPG customer
Let's break down what is covered under this policy. If there's an LPG-related accident, the LPG insurance helps in the following ways:
- Third-party injury or death: If your neighbour or a guest gets injured or dies due to a gas leak, the insurance helps with compensation.
- Third-party property damage: If the gas blast damages a neighbour's home or vehicle, the policy will support those claims.
- Legal costs: Any legal proceedings against you will be handled financially under this cover.
- Medical expenses: If someone needs hospitalisation due to the incident, their medical bills are included.
- Compensation payout: In case of death, there's a fixed compensation paid to the affected parties. According to government norms, the sum insured is often pre-decided.
This kind of gas insurance provides peace of mind. You don't have to panic about unexpected financial losses in a crisis. It also assures those around you that there's a system of compensation in place.
It's important to note that the compensation is subject to terms and conditions laid out in the policy. Not all claims may be honoured, especially if there is proof of negligence or misuse.
Exclusion of public liability insurance for LPG customer
While LPG gas insurance is a crucial safety net, there are some exclusions. Knowing what is not covered will help you avoid surprises during a claim.
Here are the usual exclusions:
- Intentional harm: If the accident was caused on purpose, the claim will be rejected.
- Negligence: If the customer did not follow safety procedures while using LPG (like not checking for leaks or misusing the cylinder), the claim may be denied.
- Damage to personal property: Your own home or items damaged in the accident are not covered. The focus is on third-party damages only.
- Unregistered gas connections: If you're using an illegal or unauthorised LPG connection, your claim will not be accepted.
- Commercial usage: This cover is for domestic use only. If you use a domestic cylinder for commercial reasons (like a home tiffin business), it may lead to claim rejection.
Conclusion
Accidents related to LPG usage can be rare but devastating. Having LPG gas insurance in the form of public liability cover is essential. It not only provides you with financial protection but also shows that there's accountability when it comes to public safety.
Next time you're getting your cylinder refilled, remember that this little-known insurance cover could make a big difference in emergencies. If you want to explore broader coverage beyond LPG usage, looking into liability insurance coverage options might be a smart idea.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.