Indian Oil Marketing Companies (OMCs) Under Fire for Negligence in LPG Accident Cases
Delayed Insurance Payouts and Lack of Medical Support Leave Victims’ Families in Distress
New Delhi, January 30, 2025 – A tragic LPG gas leakage and fire accident in Chapirevula village, Nadhyala District, Andhra Pradesh, on January 28, 2025, has exposed the alleged negligence of Indian Oil Marketing Companies (OMCs) and their partnered insurance agencies. The incident claimed two lives on the spot, while nine others sustained severe injuries and were rushed to government hospitals for treatment. However, the absence of adequate burn ward facilities has further exacerbated the victims’ suffering.
Despite the Government of India mandating OMCs to pay ₹100 crore annually to selected insurance agencies for timely assistance to victims, delays in payouts and lack of accountability have left victims’ families in distress. Under the scheme, victims are entitled to ₹25,000 as immediate relief and up to ₹30 lakh for medical treatment, capped at ₹2 lakh per person per incident. Rs.6 lakhs in case of death insurance payable. However, in the Chapirevula case, neither the OMCs nor the insurance provider, TATA AIG, have responded to the victims’ families or Vistarana Info, the organization advocating for their rights.
A Pattern of Negligence
This incident is not an isolated case. Similar negligence has been reported in other accidents across the country:
- Domalaguda, Hyderabad: Six people lost their lives due to delayed medical treatment. Despite repeated appeals, Indian Oil Corporation Limited (IOCL) and SBI General Insurance have failed to provide the promised compensation. The case is currently pending before the Insurance Ombudsman.
- L Kota, Vizianagaram District, Andhra Pradesh: Four members of a family died in an LPG accident. BPCL Gas agency and the insurance company allegedly ignored repeated requests for assistance. A young girl who suffered severe burn injuries was denied proper treatment for three months, highlighting the unethical practices of the involved parties.
- Wambay Colony, P.M. Palem, Visakhapatnam District: Four individuals sustained serious injuries and were admitted to K.G.H. Hospital. Despite their critical condition, neither immediate relief nor medical treatment was provided. Tragically, four family members died due to the lack of timely medical intervention.
- Chegunta Village, Medak District: Two family members died in an LPG accident over two years ago. Despite repeated appeals, ICICI Lombard and BPCL Hyderabad agency have failed to settle the insurance claim. The victim’s family is now preparing to protest in front of the gas agency.
Systemic Failures and Unethical Practices
These incidents highlight a disturbing pattern of negligence and unethical practices by OMCs and their partnered insurance companies. Victims’ families are left struggling for financial and emotional support, while the responsible entities delay or deny payouts and medical assistance.
Vistarana Info, an organization advocating for victims’ rights, has repeatedly brought these issues to the attention of OMCs and insurance companies. However, their efforts have been met with silence and inaction. “The lack of response from OMCs and insurance companies is appalling. Families are suffering, and no one is being held accountable,” said K.V.R. Prasad, President of Vistarana Info.
Calls for Accountability and Justice
The alleged negligence has sparked outrage among consumers and advocacy groups, who are demanding stricter oversight and accountability. The Insurance Regulatory and Development Authority of India (IRDAI) and the Ministry of Petroleum and Natural Gas have been urged to intervene and ensure timely compensation and medical support for victims.
Affected families are being advised to file formal complaints with their respective OMCs and the IRDAI. Consumer rights groups are also planning to file a class-action lawsuit against the OMCs and insurance companies involved.
What’s Next?
As the number of unresolved cases grows, the pressure on OMCs and insurance companies to address these issues is mounting. The victims’ families are determined to fight for justice, and their protests could bring further attention to the systemic failures in the LPG insurance scheme.
The alleged negligence in these cases underscores the urgent need for reforms in the energy and insurance sectors. Millions of Indian consumers are hoping for swift action to ensure that such tragedies are not repeated in the future.
