"Claim equally admissible with E20 fuel," ICICI Lombard issues clarification after insurance row
- The insurer says E20 fuel will not void insurance claims, ending confusion over older vehicles and coverage concerns in India.
ICICI Lombard General Insurance has issued a clear statement on E20 fuel use. The insurance provider has stated that motor insurance claims remain valid even in older vehicles using the normal fuel with a 20 per cent ethanol mix available at fuel stations. The clarification comes after online chatter suggested that fuel incompatibility could lead to claim rejections, especially for vehicles that are not compatible with the current ethanol-blended petrol available at pumps as standard fuel.
Why the issue caught attention
The confusion grew after a blog post from ICICI Lombard appeared to suggest that using a fuel not meant for a vehicle could affect claim outcomes. The post said, "Using a fuel your vehicle was not made for can be treated as improper use or negligence. Insurers may review these claims from that angle, and rejection is possible."
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That line spread quickly online and raised concern among vehicle owners, particularly those driving older cars that may not be fully compatible with E20 fuel. With ethanol blending becoming more common across India, many users began questioning whether insurance protection could also be affected.
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Claims equally admissible
ICICI Lombard has now stepped in with an official clarification to address those fears. The company said its policies continue to cover insured events in the normal way, and that E20 fuel use alone is not a reason to deny a claim.
The insurer stated, "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.
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.
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."
What this means for owners
The clarification matters because many vehicle owners were worried that switching to E20 could create insurance trouble. ICICI Lombard’s statement makes it clear that claim assessment still depends on the insured event, not the fuel type in the tank.
For motorists, the key point is simple: if a claim is valid under normal fuel use, the insurer says it remains valid with E20 as well.
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