LPG Cylinder Blast Insurance: Up to ₹6 Lakh Compensation Available, Property Damage Also Covered – Know the Claim Process

Accidents can occur without warning, even in homes that follow safety measures. In India, incidents involving LPG cylinder blasts continue to surface, causing injuries, loss of life, and severe property damage. What many consumers still do not know is that LPG users are entitled to a free insurance cover worth several lakhs of rupees in such cases. Due to lack of awareness, many victims fail to claim this compensation, missing out on financial relief they rightfully deserve.

Oil marketing companies (OMCs) provide this insurance as part of a mandatory safety policy, and consumers do not have to pay any additional premium for it. Understanding how this insurance works and how to file a claim can make a critical difference during difficult times.

Mandatory Insurance Cover by Oil Companies

All major oil marketing companies in India provide LPG connections under a Public Liability Insurance Policy for Oil Industries. This policy is applicable to registered LPG consumers and is designed to provide immediate financial assistance in case of accidents caused directly by LPG leakage, fire, or cylinder explosion.

However, it is important to note that the insurance applies only when LPG is identified as the primary cause of the fire or blast. If a fire originates due to another reason and the LPG cylinder explodes later as a result, the claim may not be considered valid.

How Much Compensation Is Available?

The LPG insurance policy offers coverage for multiple types of losses:

• Death Compensation:
  In the unfortunate event of death caused by an LPG-related accident, the policy provides compensation of up to ₹6 lakh per person under personal accident cover.

• Medical Expenses for Injuries:
  If someone is injured, medical treatment expenses of up to ₹2 lakh per individual are covered. The total medical coverage for a single accident can go up to ₹30 lakh, depending on the number of injured persons.

• Property and House Damage:
  Damage to the consumer’s registered residence, including household items, is covered up to ₹2 lakh.

The biggest advantage of this policy is that it is completely free for consumers, as the premium is paid by oil companies themselves.

Step-by-Step Process to File a Claim

In case of an LPG cylinder blast or fire, consumers should act promptly:

1. Inform the Police:
   Immediately report the incident to the nearest police station and obtain an FIR copy.

2. Notify the LPG Distributor:
   Inform your LPG distributor in writing about the accident, mentioning details such as date, time, and nature of damage.

3. Inspection and Investigation:
   The oil company conducts a technical inspection to determine whether LPG was the primary cause of the accident.

4. Submission of Documents:
   Required documents may include:

   • FIR copy

   • Medical bills and hospital discharge summary

   • Doctor’s reports

   • Death certificate and post-mortem report (if applicable)

   • Photographs of property damage

5. Claim Processing:
   Once verified, the oil company coordinates with the insurance provider to settle the claim as per policy terms.

Important Conditions You Must Know

Insurance claims may be rejected if:

• Non-ISI certified regulators, pipes, or accessories are used

• Consumer negligence is proven

• Installation norms were violated

To avoid claim rejection, always use ISI-marked gas accessories and regularly inspect gas pipelines and regulators.

Why Awareness Is Crucial

LPG insurance is a powerful safety net that can protect families from financial distress after an accident. Staying informed, using certified equipment, and knowing the claim procedure ensures that consumers receive timely compensation when they need it most.