The growing adoption of E20 petrol in India has raised concerns about its impact on insurance claims. After the insurer’s post, the discussion became widespread ICICI Pawn Shop using a fuel that is not recommended for the vehicle can potentially be considered negligent, leading many to believe that insurance claims related to the use of E20 fuel may be denied.
Statement by ICICI Lombard General Insurance
However, ICICI Lombard General Insurance has issued an official statement stating that car insurance policies remain valid even when E20 fuel is used and the company does not reject claims based on fuel type alone.In a statement, the insurer said it does not consider the use of E20 fuel in older vehicles to be negligent and considers the government’s ethanol blending program a progressive and environmentally friendly initiative. The company further clarified that claim acceptance is not determined by whether the vehicle runs on petrol, diesel, CNG or E20 fuel, but by insured events such as accident, theft or other covered perils. According to ICICI Lombard, if a claim would normally be considered acceptable for a regular gasoline vehicle, the claim would remain acceptable when the same vehicle uses E20 fuel. The insurer emphasized that it does not reject claims just because the car was fueled with an ethanol mixture.
India is moving towards higher ethanol blends
The clarification comes at a crucial time as India continues to expand its use of ethanol-blended fuels. E20 gasoline contains up to 20 percent ethanol and 80 percent gasoline. The government is promoting a higher ethanol blend to reduce dependence on imported crude oil, reduce emissions and support domestic biofuel production.The change is already visible in the two-wheeler and passenger car segments. Hero MotoCorp recently launched the Splendor+ Flex Fuel and HF Deluxe Flex Fuel motorcycles, both of which can run on ethanol blends up to E85. Similarly, Maruti Suzuki has unveiled the WagonR Flex Fuel prototype, which is designed to run on fuel containing up to 85 percent ethanol.The latest controversy comes after concerns surfaced online about whether damage caused by the use of E20 fuel in older, non-compliant vehicles could affect insurance coverage. The issue quickly gained traction on social media, with many users questioning whether insurers were denying claims related to the use of ethanol-blend fuel.
