More people are now switching towards compressed natural gas (CNG) from petrol or diesel vehicles. Car owners are moving towards CNG for multiple reasons; prominent among them is the rise in fuel prices and becoming more responsible towards the environment. For any of these reasons, if you are planning to buy a CNG vehicle or wish to install one in your existing alternate fuel car, there are a few things that you must consider for your four wheeler insurance.
Almost all the major automobile companies like Maruti Suzuki, Tata, Hyundai, Toyota etc., offer CNG-powered vehicles to reduce dependency on gasoline and cut greenhouse gas emissions. Thus, if you own a Maruti car and wish to install CNG in your car, you need to follow several regulations at the time of your Maruti car insurance renewal. This is because the CNG kit will affect your car’s performance to the insurance premium.
Read on to learn more about CNG car insurance.
Advantages of Owning a CNG Vehicle
Recently, CNG vehicles have been generating a lot of buzz. Let us look at some of the advantages of CNG vehicles:
- More efficient than other fuel-powered vehicles.
- They emit less carbon, making them environmentally friendly.
- CNG is also among the cleanest gasoline, making it suitable for your vehicle’s engine.
- It is cost-effective.
- CNG fuel storage tanks have a lower possibility of unintentional leaks, making them a safer option.
Installing CNG Kit in your Car
● External installation
You can convert your gasoline vehicle into a CNG one by installing an external CNG kit on your old vehicle. The cost of a good-quality new CNG kit can be around ₹50,000. However, if you opt for an external installation, remember you must independently cover the kit as it is not part of your existing car insurance. Thus, you must inform your car insurance provider to get the required coverage. You also have to inform the RTO about the new CNG fitting and update your RC book.
● Internal installation
As more people opt for CNG-powered cars, automobile companies offer pre-installed CNG kits in cars. If you buy four-wheeler insurance, the equipment will already be part of the plan, and the policy will be issued considering it a CNG vehicle. Also, you need not specifically inform the RTO as the information is captured at the time of vehicle registration. Moreover, you will receive a CNG-sealed RC book from the RTO.
Impact of CNG Kit on your Car Insurance Premium
Several factors affect a car insurance premium, like the fuel type of the car, the Insured Declared Value (IDV), riders included, etc. Thus, installing a CNG kit or buying a CNG-powered car can impact your 4-wheeler car insurance. Let us discuss its impact.
● Increase in premium
A CNG-enabled car has higher maintenance costs which increase the premium coverage leading to higher CNG car insurance costs. The Insurance Regulatory and Development Authority of India (IRDAI) has fixed the third-party liability insurance premium to ₹60 for CNG cars, regardless of whether the kit is installed externally or internally. Thus, the CNG car insurance cost is ₹60 over and above the premium cost.
When you opt for a comprehensive car insurance policy, the CNG kit is already included in the coverage, thus increasing the premium amount. Thus, CNG-powered cars have higher premiums compared to petrol or diesel vehicles.
● Insufficient coverage
When you install a CNG kit in your existing car, your insurance policy becomes insufficient and needs to be revised. Your policy will be considered void in case of damages incurred to your car due to the CNG kit. Your car requires more care and maintenance, and the expense of fixing the damage is also higher. Thus, you must inform your insurance provider and expand your plan’s coverage to cover your CNG kit.
● Need of an endorsement
A CNG kit installation is considered a change in your car. The fuel type changes and additional fittings are made to your car. Thus, you must include this in the car’s coverage. For this, you need to request an endorsement from the insurance provider; being unable to do so may lead to the insurance company rejecting your claim.
Conclusion
When you install a CNG kit externally, you will be charged for a smaller additional premium which can go a long way to keeping you safe. So it is recommended to have adequate insurance at the earliest. Also, it is equally important to purchase your CNG car insurance from a reputed insurance provider like Tata AIG, which offers comprehensive plans with 12 add-ons at affordable rates and options like comparing plans and doing car insurance renewal online.
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