PNGRB tells CGD entities to roll out insurance policy for PNG consumers within 2 months

New Delhi: After an open house discussion, the Petroleum and Natural Gas Regulatory Board (PNGRB) has decided to include mandatory insurance coverage in its Quality of Service (QOS) regulations for the City Gas Distribution (CGD) sector. The watchdog has asked CGD entities to roll out the insurance policy to cover Piped Natural Gas (PNG) consumers within two months’ time frame. According to a minutes of the meeting (MoM) document, PNGRB has decided that its CP division will “initiate the process for including the insurance in the Quality of Service (QOS) regulations, making it mandatory for the entities to implement the insurance policy.”

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“There was consensus among the stake holders for covering the PNG consumers akin to LPG consumers and agreed to roll out the policy within two months’ time frame,” said the document.

PNGRB asks OMCs to include JVs in present insurance scheme

Noting that state-run Oil Marketing Companies (OMCs) already have an insurance scheme that covers LPG consumers, the board asked them to include their JVs in the present insurance scheme and extend the scheme to cover PNG consumers. It also directed private CGD entities to “… at least match the best terms being offered or do better in providing immediate and general cover to all consumers as in case of LPG insurance cover offered by OMCs.” The board suggested that private CGD entities may implement a collective policy, which will help reduce the premium amount.

“The claim procedures need to be well thought of, deliberated and known scenarios have to be covered. Efforts should be made that routine insurance claims do not require judicial oversight or intervention, as it will lengthen the process and may bring bad name to the entity,” said the board.

“Board emphasised the importance of awareness & safety precaution campaigns for PNG consumers by CGD entities,” the document said.

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