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PNGRB Mandates Insurance Coverage for PNG Consumers in QoS Regulations

Following an open house discussion, PNGRB has directed CGD operators to implement the insurance policy within two months, as indicated in the minutes of the meeting.
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The Petroleum and Natural Gas Regulatory Board (PNGRB) has resolved to introduce mandatory insurance coverage for Piped Natural Gas (PNG) consumers as part of its Quality of Service (QoS) regulations for the City Gas Distribution (CGD) sector. Following an open house discussion, PNGRB has directed CGD operators to implement the insurance policy within two months, as indicated in the minutes of the meeting. The CP division of PNGRB has been tasked with initiating the formal process to make the insurance provision compulsory under QoS regulations.

According to the document, stakeholders reached a consensus on providing insurance coverage for PNG consumers, similar to the existing policy for LPG consumers, and agreed on the timeline for rolling it out.

Additionally, the board urged Oil Marketing Companies (OMCs) to include their joint ventures (JVs) in the current LPG insurance scheme and extend the same coverage to PNG users. It further instructed private CGD players to offer comparable or better insurance terms than those provided by OMCs, recommending that a collective policy could be a viable option to lower premium costs.

PNGRB also highlighted the need for a streamlined claims process, cautioning that routine claims should not require legal intervention, which could cause delays and affect consumer trust. The board stressed the importance of conducting safety awareness campaigns for PNG users, urging CGD companies to actively promote safety measures.


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