New Delhi: Will E10 or E20 petrol affect your vehicle’s insurance claims? The rollout of ethanol-blended petrol or E20 has led to such discussions with regards to vehicle compatibility, fuel efficiency and maintenance.
The issue gained attention after a private bank’s insurance webpage cited concerns that damage linked to the use of E20 fuel in vehicles, which were not designed for the fuel, could affect claim eligibility. The insurer, however, later clarified that using E20 petrol does not invalidate a motor insurance policy.
But what does using E10 or E20 petrol means from a motor insurance?
According to reports citing opinions from insurers and industry experts, the fuel type alone does not determine the eligibility of a motor insurance claim. Claim assessment depends on the policy coverage, the nature of damage and the cause of loss, they opined.
Saurabh Vijayvergia, founder and CEO of CoverSure, told CNBC TV if a vehicle suffered an insured event, the claim would be assessed based on the policy terms and the cause of loss, not simply on fuel type
But if a vehicle has mechanical issues, in that case experts said a mechanical breakdown does not automatically become an insurance claim.
“Standard motor policies have always treated mechanical or electrical breakdown and normal wear and tear differently from accidental damage,” Vijayvergia said, as quoted in the report.
The insurer may examine the cause of the damage and determine whether it can be covered under the policy, experts opined
Experts also claim that vehicle owners do not need additional documentation.
They will need the usual documents only, including:
Motor insurance policy documents
Registration certificate (RC)
Driving licence
Claim form
Repair estimates
Workshop diagnosis or job card
Vehicle servicing records
