ClaimVoice Guide · CNG / LPG & endorsements

CNG / LPG Installation Not Endorsed in RC or Insurance: Can a Motor Claim Be Rejected?

Imagine a car was originally registered and insured with a petrol or diesel fuel system. A CNG or LPG kit is later installed, but the change is not reflected in the RC and the insurer has not been informed. An accident or fire then occurs. The insurer asks about the kit and the missing endorsement. What should the owner have done?

ClaimVoice note: A modification, road restriction or documentation issue does not by itself answer every insurance question. The applicable policy wording, endorsements, facts, evidence and law must be considered for the particular claim.

Why CNG / LPG changes matter

CNG/LPG installation is more than an accessory. It changes the vehicle's fuel system and can require compliance with registration requirements as well as appropriate insurance disclosure. IRDAI's motor-insurance guidance says that after CNG/LPG installation, the RTA should be informed for the RC and the insurer should be informed so the kit can be covered under the relevant section.

RC endorsement and insurance endorsement are different

Updating the registration record and updating the insurance policy are separate steps. A policyholder should not assume that completing one automatically completes the other.

Check the vehicle registration requirements.
Inform the insurer.
Ask whether an endorsement is required.
Keep the retrofitment certificate, invoice and approval documents.

If a claim occurs before the records are updated

The insurer may investigate the installation, its legality, whether it was disclosed and whether the loss is connected with the modified fuel system. Do not assume that every claim is automatically rejected, but do not ignore the missing endorsement either.

Questions to ask if the insurer raises an objection

What exact policy clause is being relied upon?
Is the objection about the RC, the insurance policy, or both?
Was the CNG/LPG kit approved and installed by an authorised source?
What evidence connects the installation with the loss?
What endorsement or document does the insurer say was required?

How to avoid the problem

Before or immediately after an approved retrofitment, complete the applicable registration process, inform the insurer and obtain written confirmation/endorsement where required. Keep all invoices, certificates and inspection documents together with the policy.

Frequently Asked Questions

Does installing CNG/LPG automatically cancel insurance?

No. The actual policy wording, registration status, disclosure, endorsement and circumstances of the loss must be examined.

Why does the insurer need to know about a CNG/LPG kit?

Because the fuel system and vehicle risk have changed, and the insurer needs accurate information about the insured vehicle.

What if the RC is updated but the policy is not?

The registration and insurance records are separate. The insurer should be informed and the policy should be checked for the required endorsement.

What if the insurer rejects the claim?

Ask for the written rejection, exact policy clause, relevant endorsement requirement and the evidence relied upon.

For awareness only: This article explains common claim issues in simple language. It is not a determination that a particular claim is payable or not payable and does not replace professional legal or insurance advice.