Family receives compensation of Rs 51 Lakh after LPG cylinder explosion

Family gets Rs 51L assistance for house gutted due to LPG blast

Bengaluru: Seven years after a Petroleum from Hindustan An LPG cylinder explosion destroyed their house in Mandya district, a family was recently awarded an award compensation of Rs 51 lakh.
The state of Karnataka Consumer disputes The Redressal Commission has ordered ICICI Lombard General Insurance Company, which has offered public liability insurance to the oil PSU and its distributor, to pay compensation for deficiency in service delivery.
On July 30, 2017, a faulty HP LPG cylinder burst into flames at the residence of Manjula, her husband Devaraje Gowda and their relative Honne Gowda when the family was preparing lunch, in Honnenahalli village, Nagamangala taluk. The explosion burned their home and other belongings, including gold jewelry, cash, furniture and a refrigerator. The family said the house alone was worth around Rs 40 lakh.
However, the insurance company offered a paltry amount of Rs 2 lakh as compensation without considering the losses. Claiming it was unfair, Manjula, Devaraje Gowda and Honne Gowda approached the Karnataka State Consumer Disputes Redressal Commission with a complaint against HP, Bellur-based Prasanna Gas Agency, the distributor that supplied the cylinder, and ICICI Lombard, seeking damages of Rs 81 demanded. lakh.
HP did not appear before the committee and remained ex-parte. The agency claimed that the cylinder had no manufacturing defect as it was sealed during delivery and the complaint was filed for unlawful gain.
The insurance company said the couple moved the cylinder and improperly installed the regulator, leading to leakage and exposure.
The committee noted that the accident was reported to the tahsildar and the divisional commissioner, who recommended compensation of Rs 42 lakh.
The committee said the insurer had failed to file an affidavit in support of its defense and described the compensation of Rs 2 lakh offered as meager. “The settlement offered by the insurer as compensation absolutely amounts to a lack of service,” it added.
The commission in its order held that the insurer should pay the complainants Rs 46 lakh as compensation with 6% interest, Rs 5 lakh for deficiency in service and Rs 25,000 as legal costs.