Gas Cylinder Explosion Insurance Policy – Check Coverage, Claims Process, Other Details


The liability insurance taken out by the OMC covers losses resulting from accidents where LPG is the main cause of fire.

There is always a risk of gas cylinder explosion in its premises. Any unfortunate event can result in injury or even death in addition to damage to household property. But, not many people know that there is insurance against personal injury, death and property damage resulting from the explosion of a gas cylinder. There is an LPG gas insurance policy of the group insurance cover type taken out by petroleum marketing companies (OMC) and even by concessionaires.

OMCs such as Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), underwrite a comprehensive insurance policy under the ‘Public Liability Policy for the Petroleum Industries’ ‘in order to provide rapid relief to those affected in the event of LPG-related accidents. It covers all LPG consumers registered with the WTO.

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The liability insurance policy taken out by the OMC covers losses resulting from accidents where LPG is the main cause of fire and not cases where the main cause of fire is another source or reason for which gas cylinders. LPG are swallowed up and then burst.

According to information provided by the Ministry of Petroleum and Natural Gas to Rajya Sabha in July 2019, the policy states the following:

(i) Individual accident cover of Rs 6,00,000 per person in the event of death.

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(ii) Covers medical costs of Rs 30 lakh per event with a maximum of Rs 2.00,000 per person.

(iii) In case of material damage, it covers a maximum of Rs 2.00,000 per event at
the registered premises of the customer.

What to do in the event of an incident – Complaints process

All registered LPG consumers are covered by an insurance policy taken out by the PSU oil companies. In the event of an accident, the distributor must be informed immediately in writing. The distributor then informs the oil company concerned and the insurance company. Assistance is offered by the Petroleum Companies to the customer concerned or to the next of kin, in completing the formalities of insurance claims resulting from the accident. In addition to the above, all LPG distributors also have liability insurance covering losses in the event of an LPG accident.

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