ICICI Lombard , Insurance Claim :Can E20 petrol lead to claim rejection? Here’s what ICICI Lombard says |
The increasing adoption of E20 petrol in India has raised concerns on its impact on insurance claims. The discussion gained momentum after a post from insurer ICICI Lombard suggested that using fuel not recommended for a vehicle could potentially be viewed as negligence, leading many to believe that insurance claims related to E20 fuel usage could be rejected.
ICICI Lombard General Insurance’s clarification
However, ICICI Lombard General Insurance has now issued an official clarification, stating that motor insurance policies remain valid even when E20 fuel is used and that the company does not reject claims solely on the basis of fuel type.In its statement, the insurer said it does not treat the use of E20 fuel in older vehicles as negligence and considers the government’s ethanol-blending programme to be a progressive and environmentally friendly initiative. The company further clarified that claim admissibility is determined by insured events such as accidents, theft or other covered risks, and not by whether the vehicle is running on petrol, diesel, CNG or E20 fuel. According to ICICI Lombard, if a claim would ordinarily be admissible for a vehicle running on conventional petrol, it would remain admissible when the same vehicle is using E20 fuel. The insurer emphasised that it does not reject claims merely because a vehicle has been fuelled with ethanol-blended petrol.
India moving towards higher blends of ethanol
The clarification comes at a crucial time as India continues to expand the use of ethanol-blended fuels. E20 petrol contains up to 20 per cent ethanol and 80 per cent petrol. The government has been promoting higher ethanol blending to reduce dependence on imported crude oil, lower emissions and support domestic biofuel production.The shift is already visible in the two-wheeler and passenger vehicle segments. Hero MotoCorp recently launched the Splendor+ Flex Fuel and HF Deluxe Flex Fuel motorcycles, both capable of running on ethanol blends of up to E85. Similarly, Maruti Suzuki has introduced the WagonR Flex Fuel prototype, which is designed to operate on fuel containing up to 85 per cent ethanol.The recent controversy emerged after concerns were raised online about whether damage caused by using E20 fuel in older, non-compatible vehicles could affect insurance coverage. The issue quickly gained attention on social media, with many users questioning whether insurers could deny claims linked to ethanol-blended fuel usage.
