India The government is strongly promoting the use of ethanol as fuel. The government is promoting ethanol with the aim of reducing dependence on crude oil. People who have old vehicles are surrounded by many questions regarding the use of 20 percent E20 petrol. Meanwhile, a post by the leading insurance company ICICI Lombard has increased the concern of the vehicle owners. However, as the discussion intensified, the company issued an official statement removing the concerns related to insurance claims.
What was in ICICI Lombard’s blog post
According to media reports, ICICI Lombard had said in a blog post, “If you use a fuel in your vehicle for which it is not designed, it can be considered as misuse or negligence. Insurance companies can investigate these claims from the same perspective and the claim can also be rejected.” After this post of the insurance company, discussions intensified on social media and the tension of people who have vehicles purchased before the year 2023 increased. But, seeing the matter gaining momentum, ICICI Lombard has issued an official statement for its customers.
What did the insurance company say now
ICICI Lombard said in its statement issued on Monday, June 15, “ICICI Lombard General Insurance clarifies that motor insurance policies remain fully valid even with the use of E20 fuel. We make it clear that we do not consider the use of E20 fuel in older vehicles to be negligent and consider the E20 fuel program to be a progressive step towards being environmentally friendly.
Our insurance policies include accidental damage, theft, personal accident cover for owner-driver and passengers and third-party liability, depending on the cover chosen by the policyholder.
Claims are accepted on occurrence of insured events like vehicle accident or theft. The fuel used in the vehicle (like petrol, diesel, CNG etc.) is not a factor in deciding the admissibility of the claim. Therefore, if a claim is admissible with conventional fuel, it is equally admissible with E20 fuel and ICICI Lombard does not reject claims merely on the basis of fuel usage. We remain committed to our philosophy of putting our customers first and foremost.”
Petrol with 20 percent ethanol is being sold across the country.
Let us tell you that petrol with at least 20 percent and maximum 85 percent ethanol is available for sale in the country. While on one hand the sale of petrol with 20 percent ethanol has become mandatory in the entire country, while petrol with 85 percent ethanol is currently available for sale only in Delhi. Manufacturing of vehicles running on E20 petrol started from 2023. Many companies had started making vehicles supporting E20 petrol from 2023 itself. After this, the government made it mandatory for all companies to make vehicles supporting E20 petrol from April 2025.
What will be the effect on old vehicles?
If your vehicle is from before 2023, it’s possible that your vehicle’s engine was not designed with E20 gasoline in mind. However, petrol adulterated with 20 percent ethanol will not have any immediate adverse effect on your vehicle. However, this may have a minor impact on the mileage of your vehicle.
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