CNG Kit Insurance in India: A Complete Guide for Car, Auto & Commercial Vehicle Owners13 November 2025

Over the last few years, there has been an incredible change towards CNG cars in India. The high costs of fuel and the move towards natural gas that is environmentally friendly have promoted the use of Compressed Natural Gas (CNG) amongst individuals and business people. But even though going to CNG can get you not only to save on fuel expenses but also cut down on carbon emissions, there are other insurance considerations it brings up like your CNG kit insurance.

Being in an owning car, auto rickshaw or a commercial vehicle, you have a good CNG vehicle insurance; you are guaranteed that you will be able to cover your financial costs in the event of accidents, theft, or damage. But first, we shall break it down and tell you all about Comprehensive Kit Insurance of CNG in India in terms of coverage, claims, and the reason why this is a must for all CNG users.

Overview: Understanding the Need for CNG Kit Insurance

When you install a CNG kit whether it’s a factory-fitted one or retrofitted later it modifies the structure of your vehicle. Any modification changes the original specifications declared during your insurance purchase. This means your existing insurance policy may not automatically cover the CNG kit unless you declare it and get a CNG endorsement on insurance.

In easily understandable words, CNG kit insurance covers your vehicle with the CNG system installed in it also covered against possible damages, accidents, or theft as in the rest of your car.

What is CNG Kit Insurance and Why It Matters

CNG kit insurance is an add-on or endorsement in your existing vehicle insurance policy that covers the CNG kit against any damage, theft, fire, or accident. It can be opted for during new policy purchase or added later through a CNG kit endorsement in insurance.

Why does it matter?

Since the CNG kit is a very costly part, it may cost between 25000 and 60000 depending on The best CNG kit brand, and type of installation. In case of any damage or theft of your CNG kit, it may prove to be expensive to repair or replace. Having the right insurance, you will not be holding on to that burden.

The Significance of Car Modification Coverage

A CNG kit installation counts as a vehicle modification, and this is where most people make a mistake. When you make alterations to your car without informing your insurance company, then your current cover can be nullified when you are making a claim.

Car modification coverage ensures that your insurance remains valid even after the installation of a CNG kit. It’s crucial to inform your insurer and get the necessary CNG endorsement on insurance documents added to your policy.

Without this, if an accident occurs, the insurer might reject your claim, citing non-disclosure of modification.

Why You Need CNG Kit Insurance

Here’s why every CNG vehicle owner whether personal or commercial should opt for CNG kit insurance:

1. Expensive Repair: CNG kits are sensitive parts, such as the cylinder, regulator and valves. The cost of replacing them once damaged may be costly.
2. Fire Risk Protection: CNG kits are safe but can still face risks from overheating or accidents. Insurance protects against such damages.
3. Compliance & Legality: Driving a modified CNG vehicle without updating insurance can lead to policy cancellation and fines.
4. Comprehensive Protection: It ensures that your CNG car insurance or CNG auto insurance covers every part of the vehicle.
5. Peace of Mind: Whether it’s a car, CNG auto rickshaw, Cng kit insurance for heavy commercial

 ensures financial security in uncertain situations.

How to Add a CNG Kit to Your Existing Car Insurance

If you have a car, and now you have put a CNG kit, then follow these steps to change your insurance:

1. Call Your Insurer: You must call your insurance company as soon as an installation has been done.
2. Submit Documents: Provide the CNG kit’s invoice, RTO endorsement, and installation certificate.
3. Pay Additional Premium: A small premium will be added based on the value of the kit.
4. Get Endorsement: Ensure your policy reflects a CNG kit endorsement in insurance. This officially adds coverage.
5. Verify Updated Policy: Check that the IDV (Insured Declared Value) now includes the kit’s cost.

Requirements for Getting CNG Vehicle Insurance

To get CNG vehicle insurance, you must:

• Have a valid RC with the CNG kit endorsed by the RTO.
• Present the copy of installation and compliance certificate of an approved workshop.
• Make sure that the CNG kit is endorsed by the concerned bodies (such as ARAI).
• Update your vehicle’s insurance policy with a CNG insurance policy endorsement.

Advantages of Having CNG Kit Insurance

Owning CNG kit insurance brings several benefits:

• Financial Security: Covers the cost of damage, theft, or replacement of the kit.
• Policy Validity: Keeps your main policy valid after modification.
• Comprehensive Protection: Provides the CNG system with a third-party and own-damage cover.
• Low Premium Increase: The added premium for CNG endorsement is minimal compared to potential repair costs.
• Ease of Claim: In case of an accident, claims for both vehicle and kit are handled together.

Impact of Insurance on Your CNG Vehicle

Adding CNG coverage slightly increases your insurance premium typically by 4% to 6% of the kit’s value. However, it significantly enhances the protection of your CNG car insurance or CNG auto insurance policy.

As an example, consider having a kit that is valued at 40,000, the premium increment may be as low as 1,600-2,400 per year, a cheap price to pay to have full coverage.

Also, the right CNG insurance policy will keep the resale value of your vehicle in check, and ensure that you are on the right road.

CNG Insurance Options for Different Vehicles

When it comes to CNG vehicle insurance, the coverage and requirements can vary depending on the type of vehicle you own. Whether it’s a personal car, an auto rickshaw used for daily commuting, or a heavy commercial vehicle operating across states, each has unique insurance needs. Let’s look at the different CNG insurance options for various vehicles and understand how each one works.

1. CNG Car Insurance

In case you have your own personal car where the factory-fitted or retrofitted kit is available, then ensure your CNG car policy covers the own-damage and third-party insurance. You may also choose such add-ons as engine protection or zero depreciation.

2. CNG Auto Insurance

To the owners of auto rickshaws, CNG auto insurance or CNG auto rickshaw insurance covers the commercial usage, passenger liability, and kit protection.

3. CNG Kit Insurance of Heavy Commercial Vehicles.

CNG kit insurance of heavy commercial vehicles should be done by buses and trucks with large kits to cover damages in their operations, fire, and theft as the cost of the kit is significantly greater in such vehicles.

What Exactly Gets Covered

The total CNG kit insurance is a broad cover of the CNG system of your vehicle. It usually includes accidents and you are not hamstrung by unexpected expenses of repair. It is also covered with fire or explosion protection, which may happen as a result of unexpected mechanical failures or other external influences. Moreover, you will be covered in the event of theft or burglary of the kit, natural calamities like floods, cyclones, or earthquakes that may destroy your car or the kit. Furthermore, in case your CNG system results in the damage of a third party or his property, third-party liabilities that may occur out of the CNG malfunctions are covered as well.

Nevertheless, some exceptions are to be considered. The policy fails to cover ordinary wears and tears, which occur as a result of ordinary use. It also omits illegal installations, i.e. the CNG kit should be installed by a registered dealer or workshop and accepted by the RTO. Lastly, any damage caused by negligence or improper maintenance then CNG maintenance cost is not covered under the CNG kit insurance policy.

Claim Process for CNG Kit Insurance

Here’s how you can raise a claim:

1. Report the damage or loss to Insurer: Notify the Insurer as soon as damage or loss arises.
2. File an FIR (if necessary): When they are robbed or burnt, then they need a police report.
3. Send Documents: Employee must submit the policy, RC book, damage photos and kit invoice.
4. Survey / Verification: Survey will be conducted of the damage and it will be approved by the insurer.
5. Claim Settlement: When confirmed the insurer will either pay back the money or repair it.

And don’t forget to do your Cng kit insurance renewal so that you are covered at any given time.

FAQs about CNG Kit Insurance

1. Can I get insurance for a retrofitted CNG kit?

Yes, you can. Just inform your insurer and get a CNG endorsement on insurance.

2. Does CNG insurance cover third-party liabilities?

Yes, third-party damages caused by a CNG system are covered under a comprehensive policy.

3. How much extra premium do I pay?

Usually 4–6% of the kit’s value.

4. Is RTO approval necessary?

Absolutely. Insurance is valid only if the CNG kit is RTO-endorsed.

5. Can I claim for CNG kit damage separately?

Yes, if the kit alone is damaged, you can file a specific claim under CNG kit insurance.

Conclusion

Installing a CNG kit is a smart and eco-conscious move but it also requires responsible protection. CNG vehicle insurance ensures your investment in a CNG system is secure, compliant, and stress-free.

Whether you own a car, an auto rickshaw, or a heavy commercial vehicle, adding a CNG kit endorsement in insurance is not just about compliance it’s about peace of mind.

With the right CNG insurance policy, you can enjoy fuel savings, environmental benefits, and full protection on every drive.

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