After ICICI insurance row, Oil Ministry ensures E20 won't affect claim validity

Just a few days ago, a blog post by ICICI Lombard, one of India's largest private sector general insurance companies, sparked concerns that damage due to E20 petrol in older, non-compatible vehicles may be treated as negligence and lead to insurance claim rejection. This created quite a furore among the vehicle owners in India, which prompted the insurance provider to issue a statement claiming that motor vehicle insurance policies will remain fully valid with E20 petrol use, and the company does not reject claims merely on the basis of fuel usage. Now, the Ministry of Petroleum and Natural Gas has issued a statement, saying that linking E20 fuel use to insurance invalidation had been clarified with relevant stakeholders and was found to be incorrect.

The statement from the Oil Ministry comes at a time when the ethanol blending programme has created several confusions and concerns among the vehicle owners across the country. The ministry has stated that India's ethanol blending programme remains safe, consumer-friendly, and economically beneficial.

The ministry also dismissed the concerns that the use of E20 fuel could affect the validity of vehicle insurance policies. "Ethanol blending is a globally accepted practice and is successfully implemented in several countries, including the United States, Brazil, and Japan," the statement reads. The ministry also noted that Brazil has long adopted higher ethanol blending levels, with E27 serving as the country's standard petrol blend.

The Indian government has claimed that the ethanol blending programme has helped the country save more than ₹1.4 lakh crore in foreign exchange by reducing crude oil imports. It further added that the programme has created sustained demand for agricultural feedstocks used in ethanol production, supporting farmers' incomes and strengthening the rural economy. "Ethanol blending plays an important role in enhancing India's energy security, reducing carbon emissions and advancing the country's transition towards cleaner mobility," the statement said, while also saying that the government remains committed to implementing the programme in a safe, transparent and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.