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ICICI Lombard has issued a clarification regarding concerns over insurance coverage for vehicles using E20 fuel. According to reports, one of the insurers had expressed his concerns regarding the insurance claim on vehicles running on conventional petrol or E20 fuel, provided the claim falls within the policy's terms and conditions. This created confusion among vehicle owners, especially those driving older models.

 

 

Replying to the concern raised by the insurer, ICICI Lombard issued a notice stating that the type of fuel used is not a deciding factor in claim settlement. The company clarified that claims related to accidents, theft, natural disasters, and other covered risks will continue to be processed as per policy provisions. A vehicle owner's use of E20 fuel alone will not lead to claim rejection.

 

The insurer also expressed support for India's transition towards cleaner fuels and acknowledged the government's efforts to promote ethanol-blended petrol. However, it advised vehicle owners to follow manufacturers' recommendations regarding fuel compatibility to ensure optimal vehicle performance and avoid potential mechanical issues. Industry experts believe the clarification will reassure millions of motorists as E20 fuel becomes more widely available across the country. The statement reinforces that insurance coverage is determined by policy terms and the nature of the claim rather than the fuel used in the vehicle.

 

With this clarification, ICICI Lombard has sought to remove uncertainty surrounding E20 fuel usage and motor insurance, assuring customers that eligible claims will continue to receive coverage without discrimination based on fuel type.