(Image source from: Livemint.com)
India's car industry is experiencing major shifts, transitioning from vehicles that run on fossil fuels to greener options. Ethanol-blended fuel, known as E20, has surfaced as a leading choice in this change. Although more people are starting to use it, there is some uncertainty among car owners. Recently, many social media posts suggested that using E20 could result in insurance claims being denied. The government, however, has refuted this idea. The Press Information Bureau (PIB) recently addressed this issue on X, clarifying that using E20 fuel does not invalidate motor insurance policies. They stated on social media, "Motor insurance remains valid when using E20 fuel. " The government has encouraged people to double-check such claims with trustworthy sources. There were also concerns that ICICI Lombard General Insurance would not honor insurance claims if E20 fuel caused vehicle damage. The company later provided an official statement to clarify the situation.
The company mentioned, "ICICI Lombard General Insurance assures that motor insurance policies are fully valid when using E20 fuel. We also want to emphasize that using E20 fuel in older cars is not seen as negligence, and we view the E20 fuel initiative as a positive, eco-friendly move. Our insurance plans cover accidental damages, theft, personal accidents for drivers and passengers, and third-party liabilities, based on what the insured chooses. Claims can be made for events like car accidents or theft. The specific fuel type, whether it's petrol, diesel, CNG, etc., does not affect claim eligibility. Therefore, if a claim is accepted with regular fuel, it will also be accepted with E20 fuel. ICICI Lombard does not deny claims just because of the fuel used. "
This explanation is crucial, particularly as India pushes for ethanol blending to cut down on crude oil imports and lower emissions. Many car owners were worried about whether using E20 fuel would impact their insurance coverage. ICICI Lombard's statement emphasizes that there is no broad exclusion for ethanol-blended fuel, and policyholders need not fear that their claims will be rejected solely based on their choice of fuel.
