E20 Fuel will not void insurance claim. AI generated image for illustration.
Recent reports suggesting that insurance claims could be denied for vehicles using E20 fuel have prompted ICICI Lombard General Insurance to issue an official clarification. The insurer has now stated that the use of E20 fuel does not invalidate motor insurance policies and will not be treated as negligence, even in older vehicles.
ICICI Lombard Issues Clarification
In its official statement, ICICI Lombard said that motor insurance policies remain fully valid with the use of E20 fuel. The company further clarified that it does not consider the use of E20 fuel in older vehicles as negligence and continues to view India’s E20 programme as a progressive and environmentally friendly initiative.
ICICI Lombard Clarifies Motor Insurance Coverage with E-20 Fuel Usage
ICICI Lombard General Insurance reaffirms that motor insurance policies remain fully valid by the use of E-20 fuel. We clarify that we do not treat usage of E-20 fuel in older vehicles as a negligence and we… pic.twitter.com/21OOvj1mPF
— ICICI Lombard GIC (@ICICILombard) June 15, 2026
The insurer also explained that motor insurance policies are designed to cover insured events such as accidents, theft, personal accident cover and third-party liabilities, depending on the policy chosen by the customer. Importantly, ICICI Lombard stated that the type of fuel used in a vehicle is not a determining factor in claim admissibility. According to the company, if a claim is admissible when a vehicle is running on conventional fuel, it remains admissible when the vehicle is using E20 fuel as well. The company added that it does not reject claims merely on the basis of fuel usage.
Why The Issue Matters
The clarification assumes significance as India continues its transition towards higher ethanol blending. E20 fuel, which contains 20 percent ethanol and 80 percent petrol, has now become widely available across the country as part of the government’s ethanol blending programme.
ICICI Lombard Clarifies
Most vehicles launched in recent years have been engineered to support E20 fuel. However, millions of older vehicles on Indian roads were originally developed for lower ethanol concentrations, leading to concerns among owners about long-term compatibility and possible component wear.
While ICICI Lombard’s latest statement puts to rest concerns about insurance claims being denied solely due to E20 fuel usage, questions remain regarding responsibility for ethanol-related wear and tear in older vehicles. Such issues generally fall under mechanical failures or maintenance-related repairs, which are typically not covered under standard motor insurance policies regardless of the fuel being used.