Adding CNG In Car Insurance

Choked roads are a common plight of our country. When was the last time you went on a drive without encountering cars, bikes, trucks, and other vehicles jostled together? We have witnessed a rapid rise in vehicle population over the last few decades, leading to a tremendous surge in fuel consumption. This increased fuel consumption has created an enormous toll on the environment.

No doubt, vehicle emissions have increased pollution which is causing adverse health issues. And, with soaring petrol costs, people have started opting for more budget-friendly and sustainable options. You must have heard of one such option - CNG.

So, What is CNG?

CNG stands for Compressed Natural Gas (CNG). CNG is a naturally-occurring gaseous fuel which contains low level of nitrogen dioxide, carbon dioxide, and sulphur dioxide, making it environmentally safe. It is also cheaper than petrol.

Though CNG is cost-effective in the long run, but the first step, i.e., installing a CNG kit in your vehicle is quite expensive. Therefore, it is critical to insure your CNG kit as well - to make sure your vehicle is covered in case of any mishap.

Installing a CNG Kit in your vehicle can be done in different ways. Let's see.
 

How do You Add CNG to Your Car?

You can install CNG in your car either internally or externally.

• Internal Fixing
  Nowadays, all new cars have provision for installing a CNG Kit. If you have purchased a new car with a pre-installed CNG kit, your new insurance policy shall include CNG coverage as well. You just need to select the CNG variant when you purchase or select the policy.

• External Fixing
  Adding a CNG kit to your old car can be a long process. Some cars are compatible with CNG, and some aren't. Therefore, you should check whether CNG is feasible for your car and make sure you purchase a genuine CNG Kit from an authorized service center.

  Your current insurance policy shall be enclosed with the fuel type - petrol. So, if you have installed a CNG kit in your vehicle, you need to separately include CNG in both your registration certificate and your insurance policy.

  Every vehicle has its own IDV (Insured Declared Value), which is basically the vehicle's market value. When you add a CNG kit to your policy, the IDV of the CNG will also be added to the vehicle's IDV. This is based on the invoice value of the CNG kit.
   

How do you Add an Externally Fitted CNG kit to Your Policy?

Below are the steps to be followed to include an externally fitted CNG kit in your policy -

• If you wish to convert your petrol powered car to CNG, you must inform your insurance company about the addition of the CNG kit. You can contact the insurer via -
  • Email
  • Calling the toll-free
  • Visiting the branch
• In order to include the CNG kit in your policy, a few documents need to be submitted.
  • The invoice of the CNG kit
  • RC copy with the CNG kit details added to it
• As soon as the insurer verifies the documents, an inspection will be scheduled to check the vehicle's condition.
• Following a successful inspection, the insurance company will ask you to pay the difference amount for adding the CNG kit.
• Once you have paid the difference amount to the insurer, all necessary changes will be made to your policy. An endorsement certificate containing the updated changes will be sent to you.
   

Why It is Essential to Insure the CNG kit?

• To Avoid Out-Of-Pocket Expenses
  The cost of installing a CNG kit in your vehicle can be quite high. In the event of an accident, even a simple collision is enough to damage the CNG kit since it is usually installed in the boot of the car. You may have to pay heavy price for the damage. In order to avoid paying for such costs, you should include the CNG kit in your policy. This ensures that your policy will cover the expenses for the damages faced by the CNG kit in case of an accident.

• To Avoid Claim Rejection
  Let’s say, the damage is caused to your car because the installed CNG kit exploded due to unforeseen circumstances. If you haven’t insured the CNG kit, your existing policy will not cover this damage. The insurer may even reject your claim completely, which will lead to huge expenses from your own pocket.

By choosing CNG, you are investing in a financially secured and environmentally sustainable future. It is essential that you follow the necessary steps to install CNG kit in your car and make sure it is covered under the insurance policy as well. Adding the CNG kit to your policy assures that you are protected financially in the event of unfortunate circumstances.