- ICICI Lombard states E20 fuel use does not affect motor insurance validity
- Using E20 fuel is not considered negligence or improper use by the insurer
- Claims depend on insured perils, not the type of fuel used in the vehicle
ICICI Lombard General Insurance has clarified that the use of E20 fuel does not impact the validity of motor insurance policies, seeking to address concerns sparked by online discussions around claim rejections linked to ethanol-blended fuel.
The clarification comes after a blog post by the insurer noted that using a fuel for which a vehicle was not designed could be viewed as improper use or negligence, potentially affecting claim assessments. The remarks triggered widespread debate on social media, with some users raising concerns over insurance coverage for vehicles running on E20 fuel.
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In an official statement, ICICI Lombard said, "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."
"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," the insurer said.
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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 company said.
The clarification comes as India accelerates the adoption of ethanol-blended fuels to reduce crude oil imports and lower emissions. The insurer's statement is expected to ease concerns among vehicle owners who feared that switching to E20 fuel could jeopardise insurance claim settlements.
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