I plan to get my car fitted with a CNG kit, should I share this information with my insurer?
Rajan Dutta, Noida
Most people get their cars fitted with a CNG kit because its more fuel efficient compared to a diesel or petrol engine car. Cost saving when using a car with CNG over other variants entices car owners to move towards a car with CNG fitted in them. Once you get the car fitted with CNG, your job does not end with the cost savings—as your existing car insurance is no longer enough. There is higher maintenance and damage cost associated with CNG kits, which means with the installation of the kit, coverage along with the premium too shoots up.
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First, you need to notify the insurer who will charge an additional premium, because fitting a CNG kit enhances the degree of risk to be underwritten by the insurance company. Therefore, it is necessary to mention the existence of CNG kit while getting the insurance of your car and pay the higher insurance cover on it. You would have to pay an additional charge of Rs 60 towards liability cover for your CNG car as mentioned in the Indian Motor Tariff, which determines charges for car insurance premiums.
Likewise, the additional premium works to about 4 – 5 per cent of the CNG kit value and may go up further depending on the age of your car. Insurers may also ask you to get your car’s CNG kit registered on the vehicle’s registration certificate. To keep your policy in force and to insure the kit, you need an endorsement from your insurance company on your car’s policy. If you fail to get it done, your whole policy will turn null and void. Ideally you should check with your car insurer about the move to CNG before actually going ahead with it.
