If car engine gets damaged due to ethanol, will it not be covered under insurance? PIB replied

The Narendra Modi government at the Center recently gave permission to sell petrol containing 20% ​​ethanol. Due to this, there is a common discussion on social media that petrol mixed with ethanol can cause damage to the vehicle. In such a situation, a situation of confusion has arisen among the people. But, the Central Government has fact checked this claim to clear the confusion of the people.

The Central Government has recently exempted petrol mixed with 22–30% ethanol from Central Excise Duty. This step of the government to reduce pollution and reduce dependence on expensive crude oil imports is considered to be a big and transformative step.

New concern among vehicle owners

But, as India moves towards more ethanol blended petrol, a new concern is emerging among used vehicle owners. People say that E20 fuel damages the vehicle. In such a situation, will the insurance company pay if the engine breaks down?

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The government’s decision is aimed at promoting more ethanol blending, thereby reducing pollution, reducing dependence on natural oil and strengthening India’s biofuel and sustainability goals.

Will vehicle owners get insurance coverage or not?

New concerns have emerged regarding insurance coverage for vehicle owners as the use of E20 fuel is promoted in the country. In an FAQ, ICICI Lombard has clarified that unless the use of E20 fuel in an older and non-E20-compliant vehicle causes damage to the engine, normal motor insurance policies may not cover such damage.

The company has advised vehicle owners to first ensure whether their vehicle is compatible with E20 fuel or not. Also, carefully check the terms and conditions of your insurance policy, so that in case of any damage to the engine in future, you do not have to bear the repair expenses from your own pocket.

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Your claim may be rejected

ICICI Lombard said, ‘Using a fuel for which your vehicle is not designed may amount to misuse or negligence. Insurance companies can review these claims from that perspective and reject your claim.

Vehicle owners have raised concerns on social media that E20 fuel could cause problems in older, non-compatible cars and two-wheelers. E20 compliant vehicles are being sold in India from April 2023 onwards. But, vehicles manufactured before this do not support E20 fuel. Vehicle owners should pay attention to this.

What did PIB say?

However, PIB has said in its fact check that in some social media posts it is being claimed that using E20 fuel can lead to vehicle insurance claims being rejected. He said, ‘This claim is false. Motor insurance policies remain valid even when E20 fuel is used. PIB said that before sharing such claims or taking action on them, always verify from official sources.