ICICI Lombard General Insurance has clarified that the use of E-20 fuel will not affect the validity of motor insurance policies, assuring vehicle owners that claims will not be rejected merely because a vehicle is running on the ethanol-blended petrol.
The insurer said motor insurance policies remain fully valid for vehicles using E-20 fuel and added that it does not consider the use of E-20 fuel in older vehicles as negligence. The clarification comes at a time when motorists have been seeking greater certainty over the impact of ethanol-blended fuel on vehicle performance, maintenance and insurance coverage.
“ICICI Lombard General Insurance reaffirms that motor insurance policies remain fully valid by the use of E-20 fuel. We further clarify that we do not treat usage of E-20 fuel in older vehicles as a negligence and we consider E-20 fuel program as a progressive environment friendly step,” the company said in its statement.
E-20 refers to petrol blended with 20% ethanol, part of India’s broader push towards cleaner fuels and reduced dependence on fossil fuel imports. While the fuel programme has been promoted as an environment-friendly step, some vehicle owners, particularly those with older vehicles, have expressed concerns over compatibility and possible insurance implications. Insurance paperwork, after all, is rarely anyone’s idea of a leisurely Sunday read.
ICICI Lombard said its motor insurance policies are structured to cover accidental damage, theft, personal accident cover for owner-drivers and co-passengers, and third-party liabilities, depending on the specific covers opted for by the insured customer.
The company clarified that claim admissibility is based on insured events such as accidents or theft, not on whether a vehicle uses petrol, diesel, CNG or any other fuel type.
“The type of fuel used in the vehicle such as Petrol, Diesel, CNG & so on is not a determining factor in claim admissibility. Accordingly, if a claim is admissible with conventional fuel, it is equally admissible with E-20 fuel and ICICI Lombard does not reject claims merely on the basis of fuel usage,” the insurer said.
The clarification is significant for vehicle owners as India continues its transition towards higher ethanol blending in petrol. For motorists, the key takeaway is straightforward: if a claim is otherwise valid under the policy terms, E-20 fuel usage alone will not make it invalid.
As India’s fuel mix evolves, such clarifications are likely to become increasingly important for consumers navigating the intersection of mobility, sustainability and insurance. For now, ICICI Lombard’s message to policyholders is clear: E-20 may change what goes into the fuel tank, but it does not change the basic rules of claim admissibility.
