IOC, SBI General Insurance To Pay Rs 9 Lakh Compensation To LPG Cylinder Fire Victim's Family
The case dates back to Jan 31, 2024 when gas leakage in the LPG cylinder triggered fire leading to the death of Ashok Kumar Jha.
Published : March 11, 2026 at 11:39 AM IST
Raipur: The Chhattisgarh State Consumer Disputes Redressal Commission, Raipur, has upheld the order by the District Consumer Forum directing the Indian Oil Corporation and SBI General Insurance Company to pay over Rs 9 lakh compensation to the family of a man who died after an LPG cylinder leakage.
A bench comprising Justice Gautam Choudhary (Chairman) and Member Pramod Kumar Verma clarified that oil companies and insurance providers cannot shirk responsibility for negligence in gas cylinder delivery and safety standards.
Death due to gas cylinder fire
The case stems from a complaint filed by Priya Jha, a resident of Bhilai, seeking justice for the death of her father, Ashok Kumar Jha. On January 31, 2024, Ashok Kumar Jha suffered severe burns when a gas cylinder suddenly caught fire. He was admitted to a hospital for treatment but died during treatment on February 5, 2024.
District Consumer Commission orders compensation.
After hearing the case, the Durg District Consumer Commission had ruled in favor of the complainant. The Commission ordered Indian Oil and SBI General Insurance to pay Rs 8 lakh as compensation, Rs 1 lakh for mental distress, and Rs 5,000 as litigation expenses. It also directed that if payment is not made within 30 days, they will have to pay 6 percent annual interest.
Companies challenge decision in State Commission
The Indian Oil Corporation Limited and SBI General Insurance Company later filed separate appeals in the State Consumer Commission against the District Commission's order. The companies argued that the accident was due to the consumer's negligence and that the incident occurred at a location other than the registered address, thus excluding their liability under the insurance policy.
Commission says safety procedures not followed
After reviewing the documents and facts related to the case, the State Consumer Commission found that the gas connection in the deceased's name was valid. Furthermore, a complaint of gas leakage had been filed before the accident, but the necessary investigation and safety procedures were not properly followed, it added.
State Commission upholds District Commission's order
Considering all the facts, the State Consumer Commission upheld the Durg District Consumer Commission's order saying there was no basis for interference.
The Commission clarified that the appeals of Indian Oil Corporation Limited and SBI General Insurance Company were without merit and were therefore dismissed and the District Commission's order was affirmed.
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