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

Car owners who look forward to saving on rising fuel costs, often consider installing an LPG or CNG kit in their car. This might involve a one-time installation expense but does bring down the recurring fuel expenses. However, one must remember that the change of fuel amounts to a significant change in the insurance policy of the car too. Here are the steps one needs to follow to make those necessary changes.

Endorsement in vehicle RC
Whenever a petrol/diesel car gets fitted with a CNG /LPG kit, the same needs to be endorsed in the registration certificate (RC) issued by the state transport authorities. Documents such as existing RC book, insurance policy copy, invoice for LPG/CNG kit, KYC documents of the vehicle owner need to be submitted to the RTO and a form needs to be filled in for the same. Once the authorities examine the vehicle and the documents, they will approve the application and endorse the RC book.

Endorsement to insurance policy
Next, an application for endorsement must be made to the insurance company where the vehicle is insured. Here, one needs to submit self-attested documents like endorsed RC book, invoice for LPG/CNG kit, along with the application. After the complete verification of the documents, the insurance company will make the necessary endorsement and share the endorsed insurance policy with the vehicle owner.

Points to note

• It is advisable to install a government-approved CNG kit.
• In addition to quality and safety, it will ensure that the endorsements to RC book as well as insurance policy are carried out hassle-free.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)