How your motor insurance policy changes after installation of LPG/CNG kit

Automobile homeowners who sit up for saving on rising gasoline prices, typically think about putting in an LPG or CNG package of their automotive. This may contain a one-time set up expense however does carry down the recurring gasoline bills. Nevertheless, one should keep in mind that the change of gasoline quantities to a major change within the insurance coverage coverage of the automotive too. Listed here are the steps one must comply with to make these obligatory adjustments.

Endorsement in car RC

Each time a petroleum/diesel automotive will get fitted with a CNG /LPG package, the identical must be endorsed within the registration certificates (RC) issued by the state transport authorities. Paperwork corresponding to current RC e-book, insurance coverage coverage copy, bill for LPG/CNG package, KYC paperwork of the car proprietor must be submitted to the RTO and a type must be crammed in for a similar. As soon as the authorities look at the car and the paperwork, they are going to approve the applying and endorse the RC e-book.

Endorsement to insurance coverage coverage

Subsequent, an utility for endorsement should be made to the insurance coverage firm the place the car is insured. Right here, one must submit self-attested paperwork like endorsed RC e-book, bill for LPG/CNG package, together with the applying. After the whole verification of the paperwork, the insurance coverage firm will make the required endorsement and share the endorsed insurance coverage coverage with the car proprietor.

Factors to notice

• It’s advisable to put in a government-approved CNG package.
• Along with high quality and security, it is going to be sure that the endorsements to RC e-book in addition to insurance coverage coverage are carried out hassle-free.

(Content material on this web page is courtesy Centre for Funding Training and Studying (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)