Fitting LPG/CNG in your car? You need RTO permission and insurance company endorsement

Installing an LPG/CNG kit in your car will reduce fuel costs and make it environmentally friendly. However, inform the insurance company and be prepared to pay a higher premium.

Fitting an LPG or CNG kit in car

The price of petrol and diesel have increased substantially in the last few years. It has resulted in the fuel expenses for running a car going up. Also, these fuels create air pollution and hence are not environmentally friendly. An option that you can consider is to get an LPG/CNG kit fitted in your car. These are clean fuels, making them environmentally friendly, and cost wise much cheaper than petrol and diesel. In this article, we will understand the steps you need to take to fit an LPG/CNG kit in your car and how it will impact your motor insurance premium.

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Steps to be taken for fitting an LPG/CNG kit in your car

1) LPG/CNG kit compatibility
The first step is to check whether your car model is compatible with fitting an LPG/CNG kit. If yes, you must check whether the local RTO permits your car model to be converted to LPG/CNG. If yes, buy an authentic kit from an authorised dealer.

2) RTO approval
Once you decide to fit an LPG/CNG kit in your car, local RTO approval is necessary. Only post RTO permission can you use the LPG/CNG-fitted car legally. You must submit the required documents to the RTO to update the fuel type information (from petrol/diesel to LPG/CNG) on your car RC (Registration Certificate).

3) Endorsement in the insurance policy
Fitting an LPG/CNG kit in your car and changing the fuel type is a major alteration. Hence, you need to inform the motor insurance company about it. You must submit an application, RC book, and LPG/CNG kit invoice to the insurance company. The insurance company will include the information in its records, attach an endorsement to the insurance policy, and share a copy with you.

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Change in insurance premium

Insurance companies consider LPG/CNG cars riskier than petrol/diesel cars. Hence, the car insurance premium for these cars is higher. When you get your car fitted with an LPG/CNG kit, the insurance company will revise the premium higher. The premium depends on the car's make, model, fuel type, and other factors. The premium may increase by up to 10%, depending on various factors.

Please note that informing the insurance company about fitting the LPG/CNG kit in the car is essential. Not doing so may make the policy null and void, resulting in the denial of claims.

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Should you opt for a cost-effective and environmentally friendly LPG/CNG kit?

The one-time installation cost of an LPG/CNG is high. The regular maintenance cost can also be slightly higher than the standard petrol/diesel car. However, the daily running cost of an LPG/CNG car is far lower than that of a petrol/diesel car. Also, an LPG/CNG car is environmentally friendly. When fitting your car with an LPG/CNG kit, make sure you buy it from an authorised dealer, get the required RTO permission and inform the insurance company about it.

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