Read about Car insurance for CNG cars. For more information, check out the car insurance policy from Zurich Kotak General Insurance.
Did you know, the transportation industry is one of the largest sources of CO₂ emissions in the world? The most efficient way to mitigate the risk of global warming is to produce vehicles that use alternative energy sources, such as solar, wind, and geothermal power, rather than fossil fuels. With the world becoming more aware of environmentally-conscious technologies, the motor industry is also shifting toward better and more sustainable solutions. The introduction of CNG (Compressed Natural Gas) vehicles is one milestone step towards ensuring controlled greenhouse gas emissions and other environmental consequences.
This alternative of petrol/diesel now comes with most new vehicle models and can also be installed in several old car trunks. As car insurance is compulsory under the Motor Vehicle Act of 1988, it is essential that you get your CNG components insured as soon as you install it or buy a CNG-installed car. Read on to understand how you can add CNG to your car insurance and ensure protection.
Most of the new car models come with the option of CNG models along with petrol/diesel tanks. Some come only with CNG components. At the time of purchasing a car insurance policy, you need to inform your insurer about the CNG model. The car insurance company will provide you with CNG car insurance quotations from which you can choose one and purchase.
If you are planning to install a CNG kit in your car, you first need to inform your RTO about this change, as the RC booklet would need an update. You would also have to fill in the required forms, so, do remember to carry your RC, the car insurance policy, the CNG kit invoice, and other KYC documents.
Secondly, you must get it added to your car insurance policy. For this, you need to inform your car insurance provider, and they will make the required changes. In most cases, the premium is likely to increase by 10% to 20% of the value of the CNG kit.
Yes, the CNG variant impacts the overall car insurance premium. In most cases, the CNG car insurance premium is higher than those of petrol/diesel cars. The primary reason behind an increase in the premium is the maintenance of the CNG kit. If you have third-party car insurance and you have recently installed a CNG kit in your car, your premium increases by INR 60 (as specified by IRDAI). The new cars with CNG pre-installed also have a higher premium be it a comprehensive plan or a third-party policy.
The operational costs of CNG vehicles are much lower than fossil fuels. On the other hand, it also extends the life of your vehicle. Not only these, the carbon footprints that every fossil fuel-running vehicle leaves are irreparable. Hence, CNG is one of the best alternatives in today's world. Even though it charges a slightly higher premium, it is definitely worth it. However, it is highly recommended that you go for a CNG kit that is government-approved. This would not just be safer but also ensure a smoother upgradation of the RC.
Visit Zurich Kotak General Insurance for More Information.
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