Most families have no idea that their gas connection comes with accident insurance. They never bought it, never signed anything for it, and never received a policy document, so it’s not surprising. But every domestic LPG connection from Indane, HP Gas and Bharat Gas is covered by an insurance policy the oil companies take out on their customers’ behalf.
We hope you never need this page. But if an accident does happen, the first few days decide whether a claim goes through smoothly, so it’s worth knowing the process in advance.
What This Insurance Is
The three public sector oil companies take a combined Public Liability Policy that covers accidents involving LPG. Its personal accident section covers people and property at a customer’s registered premises when an LPG accident happens there.
You don’t buy it, and you don’t need to register for it. If you have an authorised domestic connection, you’re covered through it. The claim also doesn’t go to the insurance company from you directly. It goes through your distributor and the oil company, which is explained below.
How Much the Cover Is ?
These are the limits the government gave in a reply to the Lok Sabha in March 2023, and they match the oil companies’ own policy details:
| What’s covered | Limit |
|---|---|
| Death | ₹6 lakh per person |
| Medical expenses | ₹30 lakh per accident, up to ₹2 lakh per person |
| Immediate relief | Up to ₹25,000 per person, once liability is confirmed |
| Damage to property | ₹2 lakh per accident, at the registered premises |
Policy terms are renewed from time to time, so ask your distributor to confirm the limits under the current policy if you’re making a claim.
About those “₹40 lakh” and “₹50 lakh” forwards
You may have seen WhatsApp messages claiming every LPG customer gets ₹40 lakh or ₹50 lakh of insurance. That’s misleading. Those messages mix up the policy’s overall liability limit for an accident with what a household actually receives. The amounts that apply to people and property at your home are the ones in the table above. Older articles also quote lower limits, from earlier versions of the policy.
Who and What Is Covered
- Accidents at the customer’s registered premises, meaning the address on your connection, with an authorised connection.
- People injured or killed in an LPG accident at those premises, within the per-person limits.
- Property at those premises damaged in the accident, up to the property limit.
- 5 kg Free Trade LPG cylinders are also covered by the policy, as long as they were bought with a cash memo from an authorised distributor or outlet.
That first point matters. If your address has changed and you never updated it on your connection, fix that now. It’s much easier than arguing about it after an accident.
What to Do If There’s an Accident
1. Safety first
Get everyone out, and call for help: 1906 for LPG emergencies, 101 for the fire service, or 112 for any emergency. Nothing below matters until everyone is safe.
2. Inform your distributor in writing, as soon as you can
This is the step that starts the claim. Call your distributor straight away, but also give them a written report of the accident: what happened, when, where, and who was hurt. Keep a copy with the distributor’s stamp or signature as acknowledgement, or send it by email or WhatsApp so there’s a dated record.
3. Let the distributor and oil company take it forward
You don’t file the claim with the insurance company yourself. The distributor informs the oil company, the company’s area office investigates, and the claim is registered with the insurer from there. Your distributor is expected to help you with the formalities.
The policy requires the insurer to be notified within 90 days of the incident, which is another reason to tell your distributor on day one, not day sixty.
4. Don’t clear up too quickly
For property damage, the insurance company sends a surveyor to assess the loss. Take photos and videos of everything before you start cleaning up, and don’t throw away damaged items until the surveyor has seen them or you’ve been told you can.
5. Collect the documents
Start gathering these early, because some take time to get:
If someone has died:
- Original death certificate
- Post-mortem report, or the coroner’s or inquest report, as applicable
If someone was injured:
- Original medical bills
- Doctor’s prescriptions, in original, supporting the medicines bought
- Discharge card and any other hospital records
For property damage:
- Your photos and videos of the damage
- Bills or other proof of value for major items, if you have them
- The surveyor’s assessment is done by the insurer
In every case:
- Your Subscription Voucher and consumer details
- Copies of any police or fire service report
- A copy of your written report to the distributor, with acknowledgement
Always keep photocopies of anything you hand over in original.
What Can Get a Claim Into Trouble
Claims are decided on the merits of each case, and a few situations make them much harder:
- An unauthorised connection, or a cylinder not obtained through an authorised distributor or outlet.
- An accident away from the registered premises, including when your connection still shows an old address.
- Deliberate breaking of safety rules. The policy excludes claims arising from wilful non-compliance with statutory provisions. Illegal refilling of small cylinders from domestic ones, tampering with the cylinder or valve, or using a domestic cylinder in a shop are the obvious examples.
- Reporting late. The insurer has to be notified within 90 days of the incident.
- Missing original documents, especially medical bills and prescriptions.
To keep your side of things strong, use ISI-marked accessories like the stove and pipe, get the mandatory safety inspection done when it’s due, and make sure your address and registered mobile number on the connection are current.
If the Claim Gets Stuck
If your distributor isn’t responding or the claim isn’t moving, go up the ladder: the common LPG helpline 1800 2333 555, your company’s online complaint option, the company’s grievance officers, and finally CPGRAMS, the government’s grievance portal. Keep your written report, the acknowledgement and all document copies ready at every step.
Do These Claims Actually Get Paid?
They do. In the same 2023 reply, the government told Parliament that about 2,280 LPG accident claims were settled between 2019-20 and January 2023, with around ₹67 crore paid out in compensation. The process can take time, and it depends on each case, but the cover is real.
Quick Answers
Do I have to buy LPG insurance separately?
No. The oil companies take the policy. An authorised domestic connection is covered through it.
How much compensation is there for a death in an LPG accident?
₹6 lakh per person, according to the limits given by the government in 2023.
Can I claim directly from the insurance company?
No. Inform your distributor in writing. The claim goes to the insurer through the oil company.
Is there a time limit?
The policy requires the insurer to be notified within 90 days of the incident. Tell your distributor immediately.
Is a 5 kg Chhotu or FTL cylinder covered?
Yes, if it was bought with a cash memo from an authorised distributor or outlet.
Is an accident at a relative’s house covered under my connection?
Cover is linked to the registered premises of a connection, so an accident at a relative’s home would normally be handled under their connection, at their registered address.
Hope You Never Need It
Almost nobody reads about LPG insurance until something has already gone wrong. If you’ve read this far on an ordinary day, do three small things: check that the address on your connection is current, keep your Subscription Voucher somewhere you can find it, and save your distributor’s number in your phone. If the worst ever happens, those three things make the claim much simpler for whoever has to handle it.
If you’ve been through a claim yourself and the process was different from what’s described here, we’d genuinely like to hear about it. It helps us keep this guide useful for the next family.
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