As per the Motor Vehicles Act, 1988, it is mandatory for every car owner to insure his or her vehicle with at least a third-party liability cover. Car insurance is an agreement between the insurer and the policyholder where the insurer promises to financially protect the policyholder at the time of a mishap in exchange for a premium. The car insurance policy that you take can be a comprehensive cover or third-party liability cover depending on the kind of coverage provided.
A CNG vehicle is both economical and sustainable. Using the built-in CNG kit, you can run your vehicle for the same mileage at a lower cost than when using petrol or other fuel other than natural gas. Hence, CNG is a cost-friendly alternative when compared to using petrol or diesel. Using CNG continuously protects the heart of your vehicle, which is the vehicle’s engine. Using CNG lowers the carbon emission levels considerably, making CNG environment-friendly too.
Since using natural gas to run your vehicle is both cost-effective and environment-friendly, it is a good idea to install CNG kit in your vehicle. If you do install your vehicle with a CNG kit, you should follow the laid out procedure for adding CNG kit to your car insurance. Adding a CNG kit is a premium bearing endorsement, hence, you will have to pay extra premium for installing the same in your car.
You can opt for CNG coverage under the following circumstances:
In case you have bought a second-hand car or are planning on installing a CNG kit in your old car, you may already have a car insurance policy for the vehicle. Hence, when you install a new CNG kit you will have to insure the kit separately. In case, you fail to add the new CNG kit to your car insurance policy and pay additional premium, your insurance claim when raised will be denied.
A CNG kit is usually installed in the vehicle's trunk. Hence, there are higher chances of the kit being damaged during a mishap. This makes it vital for you to insure the CNG kit installed in your vehicle.
Having a new car with a CNG kit pre-installed is very different from getting a new CNG kit installed in an old car. Here, the fact that the CNG kit is pre-installed by the car manufacturer will help you get a CNG seal in your RC book easily. Your new car insurance will also have the CNG kit added already. You still have to ensure the CNG kit has been declared in the car insurance policy as well as the vehicle's RC.
When it comes to installing a CNG kit in your car, you can insure the CNG kit at a small premium. Mostly, the coverage for CNG kit is available at around 4% of the original price of the CNG kit. In case you forget or fail to upgrade your existing car insurance policy with coverage for the installed CNG kit, you stand to lose more than you gain. Hence, it is always a good idea to add the CNG kit to your insurance policy as soon as you install it in your vehicle.
Before you can have the CNG kit declared under your insurance policy, the insurer will have to inspect your car and give approval for the same. During the inspection and approval process, you will have to follow the complete procedure and submit the relevant documents to the insurer as and when requested.
Overall, it is a good decision to install a CNG kit in your vehicle and have it covered under the same insurance policy. It is vital that you follow the correct procedure of having the CNG kit installed in your car and having it covered under the same policy.
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