4 min read
Updated on Sep 26, 2022
Wondering, what are changes LPG/CNG Kit installations will make to motor insurance policy? Over the past few years, fuel prices in India have been on the rise. As such, many car owners prefer alternate fuel resources, such as CNG/LPG, since they are not only more economical but also eco-friendly. Moreover, these cars offer better fuel efficiency by minimizing pollution levels.
If you have a CNG/LPG car or planning to install a kit, you must incorporate the same into your car insurance policy and secure yourself financially in case of damages/accidents. You can now conveniently purchase and renew car insurance online as per your requirements. In addition, by using the car insurance calculator, you can buy the best car insurance policy in India after comparing all the plans.
When you install a CNG/LPG kit in your petrol/diesel car, you need to mention it in the car’s Registration Certificate (RC). RC is issued by the state transport authorities to car owners. You’d be required to submit copies of your present RC book, insurance policy, invoice for LPG/CNG kit, KYC documents, etc., to the RTO office.
In addition, you need to fill up and submit a form at the RTO. The office will then thoroughly survey your vehicle and the submitted documents. Once satisfied, the authorities will grant the application and offer a CNG certificate. The same will also be endorsed in the RC book. CNG endorsement on RC online makes the entire process simple and hassle-free.
Once your RC endorsement is complete, you need to make an application for endorsement to the car insurer. You’d be required to submit self-attested copies of the endorsed RC book and the invoice for LPG/CNG kit along with the application. After submission, the insurance company will verify everything thoroughly and upon satisfaction issue the endorsed insurance policy.
You can easily fit a CNG kit in your old vehicle and run it in both petrol and CNG modes. The kit will be installed in the car’s boot. However, you may need to insure the kit as this is an integral part of your old vehicle.
The steadily increasing prices of petrol and diesel are making them unaffordable to most car owners. This is why they opt for alternative options like CNG/LPG cars. As such, car manufacturers are designing vehicles with pre-installed CNG kits. Since these kits are a new car component, you’d need to include them in your motor insurance plan.
If you’re planning to install a CNG/LPG cylinder in your old car, your current insurance policy won’t be able to provide adequate coverage anymore. This is because these kits need higher maintenance and involve higher damage-repair cost too. Hence, you must intimate your insurance company to incorporate the new kit installation element into your present insurance plan. The insurer will then extend the coverage of your plan based on your application and submitted documents.
According to the rules of the IRDA, the payable premium for CNG/LPG-driven cars will include both liability cover and own damage cover. The premium for liability damage is Rs. 60 (subject to change) for CNG/LPG cars.
Since the CNG kit comes under the Own Damage component, the insurance company will charge a premium for this coverage. Also note that premium rates for CNG/LPG kit vehicles are generally much higher than petrol and diesel-driven cars.
To install a CNG/LPG kit, you would need to make some changes to your car. For instance, you can incorporate the kit installation into your car insurance policy by changing the fuel type of the insured car.
Also, the CNG kit needs to be endorsed by your insurance company. In the absence of an endorsement request, the insurance company has every right to reject your claim for any damage caused to the vehicle.
Alternative fuels such as CNG/LPG cylinders help take care of the environment, reducing the need for fossil fuels. Also, they are quite affordable and therefore convenient for most car owners. A comprehensive vehicle insurance policy helps insure your CNG/LPG kit. You can easily search for car insurance online, compare available plans and purchase the best car insurance to protect your vehicle against any untoward event.
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