Motor insurance policies fully valid for E20 auto fuel use - ICICI Lombard
This story was originally published at 16:17 IST on 15 June 2026
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MUMBAI – ICICI Lombard General Insurance Co. Ltd. Monday said motor insurance policies remain fully valid even after vehicles use the E20 blend of petrol and ethanol. "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 (compressed natural gas) & so on is not a determining factor in claim admissibility," the company said in a statement.
The clarification follows media reports claiming that using E20 fuel in older automobiles that are not compatible with the fuel blend can be treated as improper use or negligence. The media reports cited the company's blog, which was published earlier in June.
"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...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 clarified.
Speculation has been rife on social media about how the usage of higher blends of petrol and ethanol can affect the engine and other parts. The government has said that using ethanol-blended fuel can affect the mileage and health of select spare parts to an extent.
For the March quarter, ICICI Lombard had reported a net profit of INR 5.47 billion and total income of INR 66.19 billion. Monday, its shares closed 2.3% higher at INR 1,734.10 on the National Stock Exchange. End
Reported by Anand JC
Edited by Avishek Dutta
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