Recently, a prominent insurance provider, ICICI Lombard, warned that claims for damage caused by E20 fuel in older, incompatible vehicles could be rejected. This statement raised concerns among several Indian car/bike owners with E10-compliant or lower vehicles, given that E20 has now become the baseline for petrol and the government is planning to increase the ethanol content further. As this statement went viral, the Insurance provider has now come up with a new subject – what is it saying now? Let’s have a look –
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E20 Fuel Insurance Claim – What’s New?
The insurance provider has now come up with an explanation for its blog post that justified using fuel that a vehicle was not engineered to handle could be viewed as “improper use” or “negligence”, possibly leading to claim rejections.
ICICI Lombard has now stated that its motor insurance policies remain valid for the use of E-20 fuel. And they do not treat the usage of E20 fuel as negligence, but as an environmentally friendly step. Moreover, ICICI’s insurance policies cover accidental damages, theft, personal accident for the owner-driver and co-passengers, and third-party liabilities, and in such cases the type of fuel used in the vehicle, such as petrol, diesel, CNG, isn’t the determining factor in claim admissibility.
In short, the insurance provider states that fuel use is not a determining factor in accepting or rejecting claims in the event of accidental or personal accident claims. By saying this, ICICI Lombard has rejected the claims that it has made in its previous blog posts.
For some reason, this might soothe the Indian motorists who are currently stressed due to such statements by insurance providers.
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