Can Older Cars Using E20 Petrol Lose Insurance Coverage? ICICI Lombard Issues Clarification
Can E20 fuel affect car insurance claims? ICICI Lombard has clarified that motor insurance policies remain fully valid even if vehicles use E20 petrol. The insurer said claims are not rejected based on fuel type and are assessed only on insured events like accidents or theft. The clarification follows confusion triggered by an earlier blog post discussing older vehicle compatibility.
Confusion over whether the use of E20 ethanol-blended petrol could impact motor insurance claims has prompted clarification from ICICI Lombard General Insurance, after earlier comments sparked debate among vehicle owners online. The insurer has now stated that motor insurance policies remain fully valid even when vehicles use E20 fuel, and claims are not rejected solely on this basis.
The clarification comes amid India’s expanding ethanol-blending programme, where E20 fuel, comprising 80% petrol and 20% ethanol, is being increasingly introduced across fuel stations. Concerns had circulated on social media after a company blog suggested insurers could examine claims involving older vehicles using E20 fuel from a negligence perspective. Do Ants Love Ethanol in Petrol? Fact Check on E20 and Viral Video of Ants Swarming Fuel Tank.
Fake Claim of E20 Fuel-Based Damage Claims Rejection
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The issue gained attention after an ICICI Lombard blog post published on June 9, 2026, and later edited on June 14, 2026, suggested that while damage caused by E20 fuel may be covered, insurers could assess whether its use in incompatible vehicles amounted to improper usage.
The blog had stated that claims could be reviewed from the angle of negligence in some cases, particularly for older vehicles not designed for higher ethanol blends. This led to widespread discussion online about whether insurance coverage could be affected by fuel choice. 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.
ICICI Lombard Issues Clarification On E20 Fuel-Based Damage Claims
ICICI Lombard’s Official Clarification
ICICI Lombard has now issued a detailed clarification, stating that E20 fuel usage does not impact claim validity.
The company quoted, "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."
It further added: "Our insurance policies are designed to cover accidental damages, theft, personal accident for owner-drivers and co-passengers, as well as third-party liabilities, depending on the covers opted by the insured."
How Insurance Claims Are Evaluated
The insurer clarified that claims are assessed based on insured events rather than fuel type. These typically include accidents, theft, and third-party liability.
"Claims are admissible based on the occurrence of insured perils such as vehicle accidents or theft. 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 company also noted that its blog has since been updated to remove ambiguity around the issue.
E20 petrol, a blend of 80 percent petrol and 20 percent ethanol, is being rolled out as part of India’s broader push toward cleaner fuels and reduced dependence on crude oil imports.
The transition has raised questions among vehicle owners, particularly regarding compatibility with older models. According to ICICI Lombard, vehicles manufactured after April 2023 under BS6 Phase 2 emission norms are generally designed to handle E20 fuel without significant issues.
The clarification is significant for millions of motorists as India continues expanding ethanol-blended fuel availability. Concerns that insurance claims could be denied solely due to fuel choice have now been addressed directly by the insurer.
ICICI Lombard’s statement reinforces that claim eligibility depends on the nature of the incident, not whether the vehicle is running on petrol, diesel, or ethanol-blended fuel.
Fact check
Use of E20 ethanol-blended petrol could impact motor insurance claims.
The claim is fake.
(The above story first appeared on LatestLY on Jun 15, 2026 08:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).