LPG fire: Court directs BPCL, insurance firm to pay Rs 7.60 lakh compensation to kin of deceased woman

Bharat Petroleum Corporation and United India Insurance have been directed by a consumer court to jointly pay more than Rs 7.60 lakh in compensation to the family of a woman for negligence and service deficiency, more than 11 years after she died in an LPG cylinder leak fire.

The Additional District Consumer Disputes Redressal Commission in Nagpur, in an order passed on July 2, rejected BPCL’s argument that the complaint was lodged about four years after the incident.

It also pointed out that the insurance company closed the claim, citing a lack of documents, rather than actively processing it. The incident occurred on December 23, 2014, after a woman, a resident of Jaytala Road (Nagpur), opened the cap of a newly delivered LPG cylinder.

The gas leaked and caught fire due to a lit lamp in the kitchen, resulting in 54 per cent burn injuries to the woman and 12 per cent burns to her husband, as per the complaint. She succumbed to her injuries on March 3, 2015, during medical treatment.

The complainants, including the victim’s husband and her three daughters, claimed that the gas company was legally responsible for verifying the cylinder before supplying it. They alleged that the incident and the death were a fallout of BPCL’s failure to fulfil its duty.

The complainants further stated that the household furniture, jewellery, clothes, and other items were destroyed by the blaze. BPCL and its local office denied the allegations, suggesting that the accident might have occurred due to the incorrect connection of the gas cylinder. The cylinder was supplied only after proper inspection, they had said.

The BPCL argued that the presence of an intact seal on the supplied cylinder indicates that the necessary inspection was carried out.

The company sought dismissal of the complaint, citing a delay of about four years in filing the complaint, arguing that it was an extreme delay beyond the statutory limitation period. However, the commission rejected their contention.

It noted that even after repeated follow-ups, the complainants were not provided with the necessary and clear information on whom to submit the insurance claim to and the correct process to follow. The information was made available by BPCL for the very first time while the matter was pending before the commission, the consumer panel said.

Considering all the circumstances, the commission was of the opinion that the complaint couldn’t be dismissed merely on the grounds of limitation.

On the role of United India Insurance, the panel pointed out that the insurance company closed the claim citing a lack of documents, which it should have processed actively.

“Even if the insurance company took the defence that necessary documents were not provided, it was their duty to demand the required documents and take requisite steps to settle the claim. It is clear from the record that they did not take any effective action in this regard,” the commission said.

The panel further stressed that the documents on record indicate that a “communication gap led to the complainant’s insurance claim remaining unnecessarily pending and delayed its resolution”, ruling it was a deficiency in service.

Under the ‘Public Liability Policy for Oil Industries’, the commission directed United India Insurance to pay Rs 5 lakh for the accidental death, Rs 1 lakh for the injuries sustained by the husband, and Rs 50,000 for property damage, along with an annual interest of 9 per cent since the date of the accident.

The insurer was directed to pay an additional Rs 50,000 for the unnecessary delay in settling the claim.

It directed BPCL to pay Rs 50,000 for the physical and mental agony caused by its negligence.

Additionally, both the BPCL and the insurance company were also asked to pay Rs 10,000 towards litigation costs.