Installing an aftermarket CNG kit is a popular way to reduce fuel costs. However, many car owners forget to update their vehicle registration certificate (RC) and their motor insurance policy to reflect this modification. If the car is involved in an accident, the surveyor will flag this undeclared kit, leading to claim issues.
The Accident and the Survey
A hatchback met with a frontal collision, damaging the engine bay and radiator. The repair estimate reached ₹1.2 Lakhs. During the inspection, the surveyor found an aftermarket CNG cylinder and kit installed in the boot and engine bay. The surveyor cross-verified the vehicle's RC and the insurance policy, finding both listed the fuel type as 'Petrol Only'.
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The Partial Claim Rejection
The insurer rejected the own-damage claim related to the engine and fuel system, and approved only 50% of the body repair costs. Storing CNG represents a significant change in risk category due to explosion hazards. Under the Motor Vehicles Act, all fuel modifications must be registered with the RTO. Since the policyholder failed to pay the extra CNG kit premium (usually ₹60px plus taxes) and endorse the cover, the claim was disputed.
- Get your CNG kit endorsed on your Registration Certificate (RC) at the local RTO immediately after installation.
- Inform your insurer and pay the extra premium to add the CNG kit cover to your comprehensive motor policy.
- Ensure the serial numbers of the CNG cylinder and regulator are printed on the policy schedule.
- Keep physical copies of the RTO endorsement and CNG compliance plate certificates ready.