Can E20 Fuel Affect Your Vehicle Insurance? Govt Fact-Checks Claim

Last Updated:July 05, 2026, 12:01 IST

The Centre issued a clarification on a viral claim stating that insurance companies and car manufacturers will deny claims if an individual uses E20 fuel.

Amid a debate on India’s E20 ethanol blending programme, the Central government on Sunday issued a clarification on a viral claim stating that insurance companies and car manufacturers will deny claims if an individual uses E20 fuel.

The Ministry of Information and Broadcasting stated that citizens can freely switch to E20 fuel without any concern, adding that insurance companies and Original Equipment Manufacturers (OEM) have confirmed that the use of E20 does not invalidate vehicle insurance or OEM warranty.

“Insurance companies and OEMs clarified that use of E20 fuel has no impact on the validity of insurance or warranty of vehicles in India," it said in a post.

The ministry further clarified that the Society of Indian Automobile Manufacturers has categorically stated that applicable warranty coverage will continue to be honoured for vehicles operating on E20 fuel meeting the required specifications.

Govt’s Detailed Clarification On E20

Earlier, the government issued a detailed 10-point clarification to counter viral claims about the E20 programme on social media about engine damage, water consumption, vehicle warranties, fuel efficiency and environmental impact.

The Ministry of Petroleum and Natural Gas said the E20 programme, under which petrol contains up to 20% ethanol, is backed by scientific studies, regulatory safeguards and international experience.

ALSO READ: ‘No Engine Damage, Marginal Mileage Changes’: Govt Issues 10-Point Clarification On E20 Ethanol Blending

It said ethanol-blended petrol has been in use across several countries, including the United States, Brazil, Canada, Thailand, Japan and European nations, for decades. The ministry also stated that there was no significant impact on drivability or fuel efficiency, with only “marginal" changes in mileage on E20 use.

The ethanol blending programme is a major step towards reducing India’s dependence on imported crude oil. India currently imports nearly 85% of its crude oil requirement, making the economy highly vulnerable to global price fluctuations and geopolitical disruptions.

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Aveek Banerjee

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master's in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in int...Read More

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