Ever since E20 petrol (which contains 20% ethanol) has started being available at petrol pumps, old car drivers have been losing sleep. Everyone is asking that if the engine or fuel system of our car gets damaged due to this new petrol, will the motor insurance company bear the cost of its repair? Every day new scary things are being shared on social media. Someone said that the claim will not be received, while someone else said that the policy itself will be cancelled. If you are also in the same dilemma, then leave the tension. The government and insurance companies have made the whole picture clear.
Are E20 petrol really damaging engines?
Do not blindly trust the rumors circulating on WhatsApp and social media. The government has issued a detailed statement regarding this in which it has been clearly stated that there is no concrete evidence to prove that E20 petrol is spoiling the engines of old vehicles. Actually, the work of mixing ethanol in petrol in India is not of yesterday, it is going on in different phases since the year 2001. Today, more than 20 crore two-wheelers and more than 3 crore cars are running happily on the roads relying on this petrol. The government has not received any complaint from any car manufacturing company about engine seizure or rusting in the tank.
Where did this fear of claim rejection come from?
This panic in the minds of people has not arisen out of thin air. It so happened that on June 9, it was published in a blog of a big insurance company (ICICI Lombard) that if E20 is put in old vehicles, then it can be considered as ‘negligence’ of the vehicle owner. There was an indication in the blog that in such a situation the claim may be rejected. As soon as this news spread on the internet, there was a stir among the owners of old cars. The matter became so serious that Union Petroleum Minister Hardeep Singh Puri himself had to come forward and reassure the people.
Insurance companies gave relief, removed confusion
As the uproar escalated, the concerned insurance company immediately presented its clarification and gave a big relief to the customers. The company made it very clear that using E20 petrol in the vehicle does not invalidate or cancel your insurance policy under any circumstances. The most important thing was said that filling this new petrol in old vehicles will no longer be considered ‘negligence’ from any point of view. While paying claims, insurance companies never check whether the vehicle was running on normal petrol, diesel or E20. If your policy is correct, the claim will not be stopped due to fuel.
Will I get insurance cover if the engine seizes?
Now understand this very carefully, because the whole game lies here. Your car insurance (called a comprehensive policy) covers you against accidents, theft, fire or natural calamities like flood. But, there is a condition in this. If your car’s engine breaks down due to age, wear of parts while moving, or any general mechanical fault, then the insurance company does not pay for it.
In simple words – if your car meets with an accident, the insurance company will pay the full amount, even if it contains E20 petrol. But if the engine has simply deteriorated over time or due to machinery failure, it will not be covered under motor insurance. That is, your claim will be passed on the basis of what is the actual cause of the damage and not on what petrol was poured into the vehicle.
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