ICICI Lombard Clarifies E20 Fuel Does Not Invalidate Motor Insurance Policies or Claims

ICICI Lombard General Insurance has clarified that the use of E20 fuel does not invalidate motor insurance policies, and that claims are not rejected merely because a vehicle is running on ethanol-blended fuel. The clarification follows questions raised after an earlier company blog discussed the use of E20 fuel in older, incompatible vehicles. 

The clarification follows concerns raised by an earlier company blog, which discussed the use of E20 fuel in older vehicles that were not originally designed to run on higher ethanol blends. 

ICICI Lombard Clarifies E20 Fuel Usage 

ICICI Lombard stated that motor insurance policies remain fully valid with the use of E20 fuel and that the insurer does not treat the usage of E20 fuel in older vehicles as negligence. 

The company added that it considers the E20 fuel a progressive and environment-friendly initiative and reaffirmed that fuel choice alone is not a factor in deciding claim admissibility. 

Why Did ICICI Lombard Issue the Clarification? 

The clarification comes after a company blog published on June 9, 2026, and later edited on June 14, 2026, raised concerns that insurers could examine claims involving older vehicles running on E20 fuel from the perspective of improper use or negligence. 

To remove any ambiguity, the insurer clarified on June 15 that the blog has been revised, and that claims are not rejected merely because a vehicle uses E20 fuel. 

How Are Motor Insurance Claims Evaluated? 

According to ICICI Lombard, motor insurance claims are assessed based on insured events such as accidental damage, theft, personal accident cover and third-party liabilities, depending on the policy coverage selected by the customer. 

The insurer clarified that the type of fuel used in the vehicle, including petrol, diesel, CNG or E20 fuel, is not a determining factor for claiming admissibility. If a claim is admissible with conventional fuel, it remains admissible with E20 fuel as well. 

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What Is E20 Fuel? 

E20 petrol is a blend comprising 80% petrol and 20% ethanol. It is increasingly becoming the standard fuel across India as the government promotes cleaner and more sustainable mobility solutions through higher ethanol blending. 

Conclusion 

ICICI Lombard has reiterated that the use of E20 fuel does not invalidate motor insurance policies and is not a ground for claim rejection. The insurer clarified that claims continue to be evaluated based on insured events rather than the type of fuel used in the vehicle. 

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