ICICI Lombard General Insurance, the country's largest private insurance company, on Monday clarified that motor insurance policies remain fully valid even with 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,” the company said in a statement to Business Today.
The clarification comes after a blog post published on June 9, 2026, by the insurer said that using E20 fuel can be treated as “improper use or negligence” and may lead to rejection of claims. The blog post has now been edited to remove these words.
“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,” the private insurer said.
ICICI Lombard said 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 and 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,” the insurer clarified.
Meanwhile, the government is planning to further raise ethanol blending in petrol to above 20%. The government's strategy to raise the ethanol content in petrol beyond 20% is designed to achieve two objectives simultaneously: reduce the country's dependence on imported fuel and enhance farmers' earnings.
While the need to lower fuel imports became an urgent economic priority due to the sharp depreciation of the rupee against the US dollar and rising global oil prices, the goal of increasing farmers' incomes is largely driven by political considerations.
Published on: Jun 15, 2026 3:06 PM IST
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