ICICI Lombard General Insurance has issued a clarification regarding insurance coverage for vehicles using E20 fuel, stating that motor insurance policies remain valid and claims are not rejected solely because a vehicle runs on the higher-ethanol fuel blend. The statement comes after concerns emerged over whether owners of older vehicles could face difficulties while filing insurance claims linked to E20 usage.
According to the insurer, the use of E20 fuel is not considered negligence, and the company views the government’s ethanol-blending programme as an environmentally beneficial initiative. ICICI Lombard emphasised that its motor insurance policies are designed to cover insured events such as accidents, theft, personal accident cover and third-party liabilities, depending on the policy purchased by the customer.
The company further clarified that claim admissibility is determined by the occurrence of insured perils rather than the type of fuel used in the vehicle. It stated that if a claim would ordinarily be accepted for a petrol, diesel or CNG-powered vehicle under similar circumstances, the use of E20 fuel alone would not be grounds for rejection.
