"Orissa High Court Directs Immediate Compensation for Gas Explosion Victim, Highlights Consumer Safety and Accountability"

Background

The petitioner, Sushant Behera, a daily laborer, filed a writ petition seeking ex-gratia compensation for severe injuries sustained during a gas accident caused by a leaking LPG cylinder.

The accident occurred on September 27, 2021, when the petitioner Sushant Behera was working at the residence of late Santosh Kumar Sahoo.

Both Sahoo and Behera attempted to extinguish the fire, but Sahoo later succumbed to his injuries, while the petitioner survived after significant medical treatment.

The claim for ex-gratia compensation is under the LPG insurance policy, issued by ICICI Lombard Insurance (Opposite Party No. 1), and it has been pending despite multiple applications and reminders.

Sushant Behera v. The General Manager ICICI Lombard General Insurance Co. Ltd. & others

W P 39989/2023

Before the High Court of Orissa at Cuttack

Heard by Hon'ble Mr. Justice S K Panigrahi J

Legal Issue

Whether the petitioner-Sushant Behera is entitled to receive ex-gratia compensation under the LPG insurance policy.

Argument of the parties

Petitioner's Argument

The accident occurred due to a gas leak from a cylinder provided by the gas agency.

The claim falls within the coverage period of the insurance policy. Despite forwarding the application to the insurer in a timely manner, there has been no response or compensation towards Claim Settlement.

Respondent’s Argument (Opposite Party No. 3):

The gas agency states they followed proper safety procedures and forwarded the claim to ICICI Lombard.

Additionally, they emphasize the importance of safety awareness among consumers and highlight the industry's practices regarding cylinder safety.

Court's Observation

The court found that the petitioner fulfilled all requirements under the insurance policy.

The accident fell within the insurance coverage period, and the gas agency had appropriately forwarded the petitioner's application.

The unjustified delay in settling the claim was viewed as a failure on the insurer's part (ICICI Lombard)to honor its obligations.

Additionally, the court underscored the role of safety measures to avoid such accidents in the future.

The Ministry of Petroleum and Natural Gas should provide public-sector oil companies with detailed advisories. These advisories should focus on raising public awareness about insurance provisions for victims of LPG cylinder blasts and emphasize the importance of safety training for both LPG handling personnel and customers.

The training should essentially incorporate the understanding of the contain the inherent dangers of compressed gas cylinders at the end of the LPG handling staff and customers, knowledge of how to properly move, handle, and store cylinders, troubleshooting and emergency procedures in case of a leak and emergency response in case of blasts.