Orissa High Court Asks Ministry Of Petroleum & Natural Gas To Spread Awareness About Insurance Coverage In Cylinder Blast Cases

The Orissa High Court has asked the Union Ministry of Petroleum and Natural Gas to frame a robust advertisement policy for the oil marketing companies with respect to safety norms in handling LPG cylinders and also to spread awareness in public about insurance coverage in case of accidental cylinder blasts.

Highlighting the ignorance of general public about the insurance coverage, the Single Bench of Dr. Justice Sanjeeb Kumar Panigrahi observed –

“But, many victims of gas leakage mishaps are unaware of the norm that gas companies are liable to compensate them for their loss under the aforementioned scheme. The ignorance about the insurance cover often makes the accident victim or their family members lose the benefit of claim.”

The Court was hearing a writ petition filed by a person who sustained serious injuries due to accidental blast of domestic LPG cylinder. He had claimed for a compensation amount to the tune of rupees two lakhs from the gas agency and the insurance company.

While hearing the matter, the Court expressed concern about lack of awareness among the LPG consumers regarding insurance coverage in case of accidental blast of LPG cylinders. Accordingly, in its order dated 22.03.2024, the Court had asked the Bharat Petroleum Corporation Ltd., Bhubaneswar to apprise it about the steps being taken by the company for creating awareness among people about the expiry period of the cylinder.

Pursuant to such order, the gas company had informed the Court about precautionary measures taken by it to prevent any accident so also to make the consumers aware about the expiry of LPG cylinders and safety standards.

However, the Bench was of the opinion that the safety related training, insurance coverage etc. in case of mishap due to LPG cylinder blasts are the least discussed topics.

“The knowledge of insurance coverage, in case of any mishaps occur due to LPG cylinder blasts, are unknown to thousands of customers. The response mechanism in case of any blast is also not delineated properly by the LPG supplying companies. It is also often observed the staff handling the LPG cylinders are with little knowledge as to how to safely handle gas cylinders to mitigate the risks of ruptured cylinders, ignition, gas leaks and related human harms.”

The Court also flagged the issue of risky handling of gas cylinders by staff of gas agencies and observed –

“It is very common in urban and semi-urban areas that a staff of the LPG dealer carries four to five cylinders loaded in a bicycle or in a two-wheeler moped which seem to be hugely unsafe from the point of view of transportation and danger of leakage of the chemical.”

It underlined that hazard training like how fires start, ignition sources, asphyxiation hazards, toxic and corrosive gases, how oxidizers create fires and explosions, chemical reactions and incompatible substances are hardly imparted to workers as well as the consumer of the LPG.

“Further, the first aid measures – location of first aid equipment and emergency showers, how to treat at the time of emergency, who to notify in the event of an accident etc. are some of the essential elements of training to the LPG handling workers as well as the LPG customers,” it added.

The Court highlighted that oil marketing companies take comprehensive insurance policy under 'Public Liability Policy for Oil Industries' to provide relief to the victims in case of LPG related accidents.

It also noted that as per the policy of Ministry of Petroleum and Natural Gas, one can claim up to rupees six lakhs in case of personal accident resulting in death. The insurance policy also covers medical expenses of rupees thirty lakhs per event and with a maximum cover of rupees two lakhs per person. In case of damage to properties, it covers maximum of rupees two lakhs per event at authorized customer's registered premises.

“It is, therefore, imperative that the Ministry being the guiding angel of the OMCs should ensure that the information about the insurance coverage be circulated properly through mass media and the said insurance coverage related information can be printed at the back side of the money receipt issued to the customers,” the Bench suggested.

The Court, accordingly, asked the Ministry of Petroleum & Natural Gas, Government of India to frame a robust advertisement policy for the oil marketing companies with respect to the safety standards in handling the cylinders and awareness regarding the insurance coverage in case of LPG cylinder accidents.

Case Title: Sushant Behera v. The General Manager, ICICI Lombard General Insurance Co. Ltd. & Ors.

Case No: W.P.(C) No. 39989 of 2023

Date of Judgment: August 16, 2024

Counsel for the Petitioner: Mr. Bijaya Kumar Nayak (3), Advocate

Counsel for the Respondents: Mr. Shantanu Kumar Sarangi, Sr. Advocate & associates; Mr. Srinivas Patnaik, Advocate

Citation: 2024 LiveLaw (Ori) 73

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