Insurer ordered to compensate death caused by LPG explosion

Consumer disputes forum finds gas company, distributor liable

Insurer ordered to compensate death caused by LPG explosion

Insurance News

By Gabriel Olano

India’s District Consumer Disputes Redressal Forum has ordered United India Insurance Company (UIIC) to compensate the family of a woman who died due to an LPG tank explosion.

The forum ordered the insurer to pay the family of Kawalpreet Kaur INR800,000 (around US$11,400) plus interest of 12% per annum, as well as litigation costs of INR10,000 (US$140), reported Tribune India.

On June 12, 2015, Kaur was severely injured after an LPG tank exploded in her home’s kitchen, and she died six days later in hospital. Her husband, three children, and father-in-law demanded compensation from the gas company HP Gas Mumbai, distributor Dasuya Gas Service, and UIIC.

Initial investigations pointed to negligence on the part of the deceased, and the gas company and insurer maintained that they had no obligation to compensate her family, adding that the family was uncooperative. On July 24, 2017, UIIC rejected the family’s insurance claim.

However, the forum overturned the earlier decision, and held the gas company and distributor liable for the incident, as the LPG cylinder was found to be faulty.

The forum ordered UIIC, which supplies liability insurance to HP Gas, to pay Kaur’s husband and children compensation, but said that her father-in-law was not entitled to compensation money.


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