Recent reports suggest that insurance claims for vehicles using E20 fuel may be rejected, prompting ICICI Lombard General Insurance to issue an official clarification. The insurer has now said that the use of E20 fuel Does not invalidate motor insurance policies And even in old vehicles it will not be considered negligence.
ICICI Lombard issued clarification
ICICI Lombard said in its official statement that motor insurance policies remain completely valid with the use of E20 fuel. The company further clarified that it does not consider the use of E20 fuel in older vehicles as negligence and sees India’s E20 program as a progressive and environment-friendly initiative.
ICICI Lombard clarifies motor insurance coverage with E-20 fuel usage
ICICI Lombard General Insurance has confirmed that motor insurance policies using E-20 fuel remain fully valid. We clarify that we do not consider the use of E-20 fuel in older vehicles as negligence and we… pic.twitter.com/21OOvj1mPF
– ICICI Lombard GIC (@ICICILombard) 15 June 2026
The insurer also explained that motor insurance policies are designed to cover insured events such as accident, theft, personal accident cover and third party liabilities depending on the policy chosen by the customer. Importantly, ICICI Lombard said that the type of fuel used in the vehicle is not a determining factor for admissibility of the claim. According to the company, if a claim is admissible when a vehicle is running on conventional fuel, it remains admissible even if the vehicle is using E20 fuel. The company said it does not reject claims based solely on fuel usage.
why the issue matters
This clarification is important as India continues its transition towards higher ethanol blending. E20 fuel, which contains 20 percent ethanol and 80 percent petrol, has now become widely available across the country as part of the government’s ethanol blending programme.
Most vehicles launched in recent years have been engineered to support E20 fuel. However, millions of older vehicles on Indian roads were originally developed for lower ethanol concentrations, raising concerns among owners about long-term compatibility and potential component wear.
While the latest statement from ICICI Lombard only calms concerns of insurance claims being rejected due to the use of E20 fuel, Questions remain regarding liability for ethanol-related wear and tear in older vehicles. Such issues generally fall under mechanical failures or maintenance-related repairs, which are generally not covered under standard motor insurance policies regardless of the fuel being used..