Lost entire family in LPG blast at 8 in 2014, Delhi man gets Rs 32 lakh compensation

“The shock and emotional suffering of losing both the parents and two minor siblings is such that no amount of monetary compensation can fill the void created in his life. The failure to check the cylinder by the distributor after a specific complaint is the proximate cause of the accident. (IOCL) cannot absolve itself of liability for a defective product or a negligent supply chain that results in such catastrophic loss of life… Hence, he deserves reasonable compensation from the opposite party 1 (IOCL) and the opposite party 2 (Kamala Karan Gas Service),” the commission said.

The case stems from an LPG cylinder explosion on November 4, 2014, at the family’s rented home in Delhi. Aman survived the blast with 20-25 per cent burn injuries, while his father, Sanjeet Mishra, died the same day. His mother, Punam Devi, and siblings, Shami and Deepak, succumbed over the following days. The complaint alleged that the cylinder had been leaking since it was delivered on October 20, 2014, but despite complaints, no inspection or replacement was carried out.

Presiding member Dr Inder Jit Singh and member Shashi Nandkeolyar of the NCDRC relied on the gas passbook, which showed that the mandatory safety inspection due in 2013 had never been carried out.

Leakage complaint

According to the complaint, the family noticed a strong smell of gas immediately after the LPG cylinder was delivered and informed the distributor, requesting that the cylinder be checked or replaced. However, no action was taken. “There is no reason to think that any person will ignore such signs of leakage in the gas and put herself as well as the other family members at risk,” the commission said.

On the morning of November 4, 2014, when Punam Devi lit the stove after opening the doors because of the smell of gas, the room caught fire. Police records and post-mortem reports established that the four deaths were caused by burn injuries from the blaze. Aman underwent treatment at Safdarjung Hospital and later at PGIMS, Rohtak after suffering serious burns.

Commission excuses delay

The insurer rejected the compensation claim because the accident was reported nearly two years after it occurred, citing the policy requirement of immediate intimation.

The commission, however, held that the delay was fully justified because Aman was a grievously injured minor who had lost his entire immediate family in the explosion. It said the requirement to give immediate notice must be judged based on the facts of each case. Since the police had already probed the incident and all relevant records were available, the insurer was not prejudiced by the delay.

It also noted that the commission had earlier directed the insurer in February 2023 to reconsider the claim by ignoring the delay, but the insurer failed to do so.

IOCL, distributor found negligent

Rejecting the argument that the accident was caused by the family’s negligence, the commission said the father’s statement to the police, recorded when he had suffered 85 per cent burns, could not be treated as proof of negligence. Instead, it relied on the gas passbook, which showed that the mandatory safety inspection due in 2013 had never been carried out. The commission also accepted the complaint that the family had reported leakage immediately after delivery.

“The Indian Oil Corporation Ltd cannot absolve itself of liability for a defective product or a negligent supply chain that results in such catastrophic loss of life, merely by citing an internal agreement,” said the commission. Holding IOCL and its distributor liable, the commission observed that the oil company could not avoid responsibility for a defective product or a negligent supply chain merely because the distributor operated independently. Consumers, it said, had a legitimate expectation that the LPG supply network would be safe.

Rs 32 lakh payout

The commission awarded a Rs 32 lakh payout, directing United India Insurance Company to pay Rs 20 lakh under the public liability policy, while IOCL and its LPG distributor were ordered to pay Rs 5 lakh each for negligence. The payout also includes Rs 2 lakh in litigation costs. The amount will carry 9 per cent annual interest from October 20, 2016, rising to 12 per cent if it is not paid within 45 days.

Considering that Aman has now become an adult but continues to live with the consequences of the tragedy, the commission directed that Rs 20 lakh be released to him immediately. The remaining amount will be invested in fixed deposits for seven years, with the quarterly interest credited to his bank account to support his education, healthcare and other needs. The NCDRC said that the arrangement was intended to ensure that the compensation serves the survivor’s long-term welfare.

Consumer takeaway

If you notice an LPG cylinder leaking, report it immediately and stop using it. If the distributor ignores your complaint or fails to inspect or replace the cylinder, they can be held liable for any resulting accident. Even if there is a delay in filing a claim due to exceptional circumstances, consumer forums can still grant relief.

For consumer-related grievances, individuals may contact the consumer helpline in their respective states (Delhi: 1800-11-4000) or call the National Consumer Helpline at 1915 for assistance.