ICICI Lombard says E-20 fuel use won't affect motor insurance claims

The insurer clarified that the use of E20 fuel does not affect the validity of motor insurance policies and will not be treated as negligence while assessing claims

ICICI Lombard General Insurance on Monday said the use of Ethanol-20 (E20) fuel does not impact the validity of motor insurance policies' claims, and the company does not reject claims merely based on fuel usage.

 

The clarification comes after a company blog, posted on June 9, 2026, which was later edited on June 14, 2026, sparked concerns on whether the use of E20 fuel in older, incompatible vehicles could be treated as negligence and lead to claim rejection.

 

In response to a query on the same, ICICI Lombard General Insurance said that it reaffirms that motor insurance policies remain fully valid with the use of E20 fuel.

 

 

“We further clarify that we do not treat usage of E20 fuel in older vehicles as negligence and we consider the E20 fuel programme as a progressive, environment-friendly step,” the company said in its statement.

 

The general insurer’s 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.

 

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, etc, is not a determining factor in claim admissibility.

 

“Accordingly, 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,” the company added.