Rumours over ethanol-blended fuel have been put to rest

Insurance companies have clarified that concerns surrounding the use of E20 petrol (20% ethanol-blended fuel), introduced by the central government for environmental benefits and reduced fuel imports, are unfounded. They confirmed that insurance coverage will not be denied for vehicles using E20 fuel.

Rumors had circulated that vehicles manufactured before April 2023 may face engine issues due to E20 fuel, leading to claims being rejected as negligence. However, insurers stated that such assumptions are incorrect and claims will not be denied on the basis of fuel usage.

Companies including ICICI Lombard clarified that motor insurance claims are based on accidents, theft, and third-party liabilities, not fuel type. Experts also noted that engine damage due to wear or fuel reaction is not covered under standard policies and requires add-on protection plans.