Fact Check: Do Insurance Claims Get Rejected If Vehicles Run on Ethanol-Blended Petrol and Diesel?

The government's fact-checking unit has dismissed social media claims suggesting that vehicle insurance companies may reject claims if a vehicle is operated using E20 (20% ethanol-blended) fuel.

The clarification comes amid online discussions triggered by a company blog published on June 9, and subsequently revised on June 14. The blog had raised concerns that insurance claims involving older vehicles not designed for E20 fuel could be scrutinized under provisions related to negligence or improper vehicle use.

According to the original blog, while insurance policies may cover damage linked to the use of E20 fuel in incompatible vehicles, insurers could potentially examine whether the vehicle owner had used the fuel contrary to manufacturer recommendations. The blog suggested that such circumstances might influence claim assessments and, in some cases, lead to claim rejection.

The article also noted that vehicles manufactured after April 2023 under BS6 Phase 2 emission standards are engineered to operate on E20 fuel, with any impact from the ethanol blend expected to remain within acceptable limits.

The issue gained wider attention after an FAQ published by ICICI Lombard highlighted that insurance coverage for E20-related damage in older, non-compatible vehicles may not always be straightforward, prompting speculation that the use of ethanol-blended fuel itself could invalidate insurance protection.

Some social media posts are claiming that using E20 fuel could lead to rejection of vehicle insurance claims.#PIBFactCheck

❌ This claim is #FAKE

✅ Motor insurance policies remain valid with the use of E20 fuel.

🔎 Always verify such claims through official sources before… pic.twitter.com/XufhIQ7xI2

— PIB Fact Check (@PIBFactCheck) June 16, 2026

However, the Press Information Bureau's Fact Check unit has now categorically rejected such interpretations.

In a statement posted on social media, the PIB Fact Check team said: "Some social media posts are claiming that using E20 fuel could lead to rejection of vehicle insurance claims."

The agency clarified that the claim is misleading and added: "Motor insurance policies remain valid with the use of E20 fuel."

The clarification indicates that the use of E20 fuel, by itself, does not render a motor insurance policy invalid. Vehicle owners are nevertheless advised to follow manufacturer recommendations regarding fuel compatibility and maintenance practices.