Ethanol Blending: ACKO Insurance Clarifies on Engine Failure Claim Rejection Over ‘Incorrect Fuel Usage’ As Netizens Claim Companies Denying Damage Claims for Using E20 Petrol
ACKO Insurance, a major general insurance company, clarified the on engine failure claim rejection over 'incorrect fuel usage'. Several netizens claimed that insurance companies were denying damage claims for using E20 petrol. Several netizens highlighted that their vehicles were not compatible with the E20 fuel, likely leading to engine failure and rejection of claims.
New Delhi, August 9: The government of India, as a part of its carbon emission goals, has started blending pure petrol with 20% Ethanol. However, there are significant concerns among vehicle owners who say that their vehicles were not compatible with E20 fuel. Therefore, insurance companies might reject the claims if any damage happens to their vehicles. The citizen feared that the users of E20 fuel would have to bear the consequences, such as engine damage, reduced mileage and frequent service visits.
Nitin Gadkari, Minister of Road Transport and Highways in India, shed light on the issue raised by the citizens during the Business Today India@100 Summit. He said there were no complaints regarding the E20 fuel reported by the users. Gadkari blamed the accused detractors for spreading misinformation about the Indian government's ethanol-blending programme. What Are Software-Defined Vehicles? Know Why SDVs Are Rapidly Transforming Auto Industry.
ACKO Insurance Clarifying Rejection of 'Incorrect Fuel Usage'
E20 Fuel Not Compatible With Many Vehicles, Thus Not Covered in Insurance
ACKO Insurance Clarifying Rejection of 'Incorrect Fuel Usage'
Ethanol-Petrol Blending is Scam, Citizens Not Given Choice
What's Covered Under Engine Protection Cover?
Insurance Companies Rejecting Claims Due to 'Incorrect Fuel Usage'
E20 Fuel Vehicle Damage Covered in Insurance Claims?
The Ethanol-Blending Programme has been criticised by some people, especially those who are concerned about the insurance coverage of vehicles using E20 fuel. The people said that insurance companies may reject claims for vehicles using E20 fuel. The major issue raised was the incompatibility of the car with E20. Another user said the people who purchased before 2023 were in serious trouble due to the ethanol-petrol blending programme. However, ACKO insurance pointed out some issues.
ACKO Insurance Clarification on Usage of E20 Fuel, Petrol, and Coverage
ACKO Insurance, a major general insurance company, has clarified, "...in case of engine failure due to incorrect fuel usage, the claim would not be admissible". The company said it would fall under gross negligence per its policy terms. ACKO Insurance further clarified to a user named Gaurav Pradhan about the 'incorrect fuel usage' due to E20 petrol.
ACKO replied, "Hi Gaurav, we'd like to inform you that if a vehicle breaks down and the customer has opted for Roadside Assistance as part of their policy, we’ll support them, regardless of the fuel used". The general insurance company said the engine failure due to any fuel was "not an accident" and therefore not covered under a "standard insurance policy". Tesla FSD Update: CEO Elon Musk Confirms New Full Self-Driving Model Trained on 10x Parametres Will Be Released by End of Next Month.
What is Covered Under Engine Protection Cover?
Engine Protection Cover includes damaged to car engine related to parts like connecting rods, crankshafts. It includes coverage over damage or undercarriage, leakage of lubrication oil, water ingression, labour cost, cost of consumable or damage to Hydrostatic lock.
(The above story first appeared on LatestLY on Aug 09, 2025 10:46 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).