The Insurance Guide for CNG & LPG-Converted Cars 2025 provides essential information for drivers who have installed compressed natural gas or liquid petroleum gas kits in their vehicles. With the rising number of gas-powered conversions, it’s crucial for owners to understand the implications on their vehicle insurance. In 2024, the number of registered gas-powered passenger cars increased by 46% yearly, and the market for cleaner energy is expected to reach USD 101 billion by 2032.
To ensure legal compliance and financial security, owners must disclose the new kit and update their vehicle insurance. Certification is vital, and owners must obtain an official RTO endorsement after installation. Failure to do so can result in invalid claims, fines, and difficulties in selling the vehicle in the future.
The premium impact of CNG conversions is relatively small, with IRDAI setting third-party liability at ₹60 per CNG kit. In return, CNG car insurance can be one of the most affordable ways to keep a vehicle on the road, with savings of up to 60% per kilometer.
A comprehensive policy covers damage from accidents, fire, theft, and third-party claims. The CNG/LPG kit creates new risks, which are addressed in the policy plan. These risks include cylinder and valve damage, kit theft, explosion or flashback fire, and damage to filters, high-pressure lines, and the computer control module.
Must-have add-ons and endorsements include Bi-Fuel Kit Endorsement, Zero-Depreciation, Engine-Protect, and Roadside Assistance. These add-ons help close the gaps created by gas kits and provide additional protection.
To keep premiums manageable, owners can consider installing an AIS-approved CNG/LPG kit, choosing a higher voluntary deductible, combining personal accident and rider responsibility, and opting for a No-Claim Bonus. Filing a claim without delays is crucial, and owners must notify the insurance company within 24 hours, provide necessary documentation, and keep records of witnesses and evidence.
In conclusion, switching to CNG or LPG can be cost-effective and environmentally friendly, but it’s essential to get new CNG car insurance to protect funds and follow the law. By understanding the implications of gas-powered conversions on vehicle insurance, owners can make informed decisions and drive with peace of mind.