Change in Car Insurance Policy After LPG/CNG Kit Installation?

How Does Your Car Insurance Change After Installing an LPG/CNG Kit?

I wonder, what is the LPG/CNG Kit replacement for car insurance? Over the past few years, oil prices in India have risen. Therefore, many car owners prefer to use alternative fuels, such as CNG/LPG, because they are not only economical but also environmentally friendly. Also, these cars provide better fuel efficiency by reducing pollution.

If you have a CNG/LPG vehicle or are planning to install one, you should include the same in your vehicle insurance and protect yourself financially in case of breakdown or accident. Now you can buy and renew car insurance online according to your needs. In addition, by using a car insurance calculator, you can shop for the best car insurance policy in India after comparing all plans.

Regarding Installation of CNG/LPG Kit on Insurance Policy

Approval of CNG on RC

When you install a CNG/LPG kit in your petrol/diesel vehicle, you must mention it in the vehicle’s Registration Certificate (RC). RC is issued by the driving authorities to the owners. You will need to send your RC books, insurance, LPG/CNG kit invoice, KYC documents, etc., to the RTO office.

Additionally, you need to fill and submit the form to the RTO. The office will thoroughly inspect your vehicle and the documents submitted. Once satisfied, the authorities will process the application and issue a CNG certificate. The same will also be approved in the RC book. Online RC approval of CNG makes the whole process easy and hassle-free.

Acceptance of Insurance Policy

How to Add CNG Coverage to Car Insurance?

After completing your RC approval, you will need to make a valid application for car insurance. You will need to submit self-attested copy of RC book and invoice of LPG/CNG kit along with the application. After the delivery, the insurance company verifies everything properly and when satisfied will issue a valid insurance policy.

How to Install CNG Kit in Your Car?

External Installation

You can install CNG equipment in your old car and run it in both petrol and CNG mode. These tools will be placed in the boot of the car. However, you may need to verify the equipment as this is an important part of your old car.

Internal Installation

The ever-increasing prices of petrol and diesel are putting off many car owners. This is why they choose alternatives like CNG/LPG vehicles. Therefore, car manufacturers are producing cars with pre-installed CNG equipment. Since these accessories are a new part of the car, you should include them in your auto insurance plan.

How CNG/LPG Cylinder Affects Car Insurance Premium

Insufficient distribution

If you are planning to install a CNG/LPG cylinder in your old car, your current insurance will no longer be able to provide you with adequate coverage. This is because these devices require a lot of maintenance and they also cost a lot of money to repair the damage. Therefore, you should notify your insurance company to include the new product in your current insurance policy. The insurer will increase the coverage of your plan based on the information and documentation you submit.

Higher wages

As per IRDA rules, the premium for CNG/LPG powered vehicles will include both cover and wear and tear. The compensation for bad debt is Rs. 60 (subject to change) for CNG/LPG vehicles.

Since CNG equipment comes under the Own Damage section, the insurance company will cover the cost of this. Also note that the prices of CNG/LPG vehicles are usually higher than petrol and diesel vehicles.

Needs approval

To install CNG/LPG equipment, you will need to make some modifications to your vehicle. For example, you can include equipment installation in your car insurance by changing the fuel type of the insured car.

Also, CNG equipment must be approved by your insurance company. If there is no valid claim, the insurance company has every right to deny your claim for any damage caused to the vehicle.

Points to Remember Before Installing a CNG/LPG Kit

  • Always choose to install CNG equipment approved by the government. The price of LPG equipment approved by RTO is Rs. 36,000/kit.
  • Besides providing safety and quality, the RTO-approved LPG equipment ensures that the RC book endorsement and insurance can be done without difficulty.

Alternative fuels such as CNG/LPG cylinders help to protect the environment, reducing the need for fuel. Moreover, they are quite affordable and therefore convenient for many car owners. Comprehensive auto insurance helps you protect your CNG/LPG equipment. You can easily search for car insurance online, compare the available plans and buy the best car insurance policy to protect your car against any untoward incident.

Know More: What You Need to Know Before Installing a CNG Kit in Your Car

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