LPG Cylinder Explosion? You Can Get Up to ₹50 Lakh Compensation — Here's How to Claim It

Did you know that if an accident occurs due to an LPG cylinder blast, you may be eligible to receive compensation of up to ₹50 lakh? Most LPG consumers in India are unaware that their domestic gas connection comes with an insurance policy, which covers injuries, deaths, and property loss arising from cylinder-related mishaps.

With the widespread reach of LPG connections — especially through schemes like PM Ujjwala Yojana, which offers free gas connections to economically weaker families — it’s critical for users to understand the LPG Insurance Claim Process and what benefits they are entitled to.

🔥 What is LPG Cylinder Insurance?

LPG cylinder insurance is a third-party insurance cover provided by leading petroleum companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum. The insurance is automatically bundled with every domestic gas connection. The policy is underwritten by insurers such as ICICI Lombard, and its premium is paid by the gas distributors — not the customers.

This insurance policy covers:

• Accidental death

• Injury due to explosion

• Damage to house/property caused by cylinder-related accidents

💰 Insurance Coverage Breakdown

Here’s how much compensation you can claim under different circumstances:

• ₹50 lakh – Maximum compensation for loss of life caused by LPG cylinder explosion.

• ₹6 lakh per person – For death in a cylinder-related accident.

• ₹30 lakh per accident – For medical expenses due to injuries (up to ₹2 lakh per person).

• ₹25,000 – Immediate relief assistance per affected person.

• ₹40 lakh – Compensation for extensive property damage.

• ₹10 lakh – Maximum amount per person affected in the incident.

• ₹15 lakh (₹1 lakh per family member) – Cover for treatment of family members.

⚠️ Important Note: Only the person whose name is on the LPG connection is eligible for the claim. There is no nominee option. If the registered user dies in the accident, the insurance amount cannot be claimed by family members.

🧾 When and How to Claim the Insurance?

If an accident due to an LPG cylinder occurs, follow this step-by-step process to file a claim:

Report the incident immediately to your nearest police station and the LPG distributor within 30 days.

Collect and submit the following documents:

• Copy of the FIR

• List of injured or deceased

• Medical records and treatment bills

• Death certificate (if applicable)

A preliminary investigation will be conducted by the local officer and gas distributor.

If it’s confirmed that the accident was due to the LPG cylinder, the insurance company will be notified.

A team from the insurer will conduct a spot investigation and assess the damages.

Once verified, the claim amount will be sent by the gas company to the distributor, who will then disburse the amount to the customer or their family.

⏱️ The entire claim process usually takes 3 to 5 months.

🛢️ Important Tips to Ensure Claim Eligibility

• Always check the expiry date on the gas cylinder when taking delivery. Using an expired cylinder disqualifies you from receiving insurance benefits.

• Keep your gas connection documents and purchase receipts safe and updated.

• Ensure that your residential address is properly registered with the gas agency, as claims are valid only for incidents at the registered premises.

🏠 Final Take

While LPG gas has become an essential part of every Indian household, accidents — though rare — can be devastating. Knowing that you have up to ₹50 lakh in insurance coverage provides peace of mind. However, being informed about the terms, conditions, and claim procedure is equally vital to securing the compensation you or your family may need in an unfortunate event.

Stay alert, stay safe — and be aware of your rights as an LPG consumer.