CNG - Compressed Natural Gas has become an alternative and cleaner mode of fuel for vehicles. With the prices of petrol and diesel increasing every day, many of you are turning to CNG as a source of fuel for your vehicle. The fuel comes cheap and therefore proves very affordable. If you use your vehicle very frequently, fitting a CNG kit in it would prove to be an economical way of driving the vehicle. Moreover, since CNG is a clean source of fuel, you also do your bit for the environment and help keep it clean and green. So, how to insure your CNG vehicle?
Getting a CNG vehicle is an easy task. You can, either buy a new vehicle which comes pre-fitted with a CNG kit or you can install a new CNG kit in your existing vehicle. Whatever mode you choose to make your vehicle fitted with a CNG kit, you should also know that it would have a bearing on your vehicle insurance policy as well. Since fitting a CNG kit is counted as a modification to your vehicle, you would have to get the kit insured.
Let us understand how to insure your CNG vehicle
When you Buy a New Vehicle with a CNG kit
When you buy a new vehicle with a CNG kit, the registration of your vehicle is done after the kit is fitted in the vehicle. As such, the RTO knows about the CNG kit which is fitted in the car. The RC book issued by RTO would have a CNG seal signifying that the vehicle is a CNG vehicle. When you, subsequently, insure your vehicle, you submit a copy of the RC book of the vehicle to the insurance company because it is an important document. Upon receiving the RC book’s copy, the insurance company can see the CNG seal. The company would, therefore, automatically cover the CNG kit installed in the car. The premium for the policy would also be calculated after taking into consideration the value of the CNG kit. Any damages suffered by the CNG kit would be covered by the policy if you choose to buy a comprehensive plan.
When you Install a New CNG kit in an existing vehicle
When you are installing a kit in a vehicle which you already own, you would have to undergo some steps to get the CNG kit insured under the existing motor insurance policy. Moreover, the RC book of the vehicle would also have to be updated to contain the CNG seal. To do so, you should inform the RTO of the fitting of the CNG Kit. A form would have to be filled and you have to submit the same with the RTO. The RTO would then put a CNG seal on the RC book of the vehicle which would authenticate the CNG kit installed. After the authentication has been done and the CNG seal obtained, you should approach the insurance company for changing the policy. You would have to inform the company about the installation of the CNG kit in the vehicle and submit the modified RC book’s copy which contains the CNG seal. The company requires inspection and then make changes in your existing vehicle insurance policy to allow coverage for the CNG kit which has been installed. A new premium would be calculated taking into consideration the increased value of the car due to installation of the CNG kit. You would, then, have to pay the excess premium to get the CNG kit insured. Thereafter, your policy would be modified to cover your CNG vehicle and would pay a claim if the CNG kit is damaged or if it suffers any other type of loss.
Insuring your CNG kit is important whether you buy a new vehicle or install a new kit in an old one. Only if you insure the kit can get you the coverage for it. If you install a kit in your vehicle but do not inform the insurance company and change the insurance policy, in case of any claim involving the CNG kit, you would not get assistance from the insurance company. If the CNG kit is damaged, you would have to bear the repair costs yourself. So, insure your CNG vehicle whenever you install a kit in it. The process is simple and once you follow the process through you can enjoy a wider scope of coverage on your vehicle on how to insure your CNG vehicle.