Insurance Company Responds After Debate Over ‘No Insurance Cover If Cars Use E20 Petrol’ Goes Viral

A recent comment by ACKO Insurance Support on X, formerly known as Twitter, has stirred fresh debate over the safety of India’s E20 fuel — petrol blended with 20% ethanol. Replying to a user’s query, the insurer clarified that engine damage caused by using incorrect fuel would not be covered, calling it “gross negligence” under policy terms. To say that the statement has sparked concerns and debates would be a sheer understatement.

ACKO Insurance support clarifies stance on E20 fuel and insurance coverage

The debate around ethanol-blended petrol in India took a new turn when a social media post questioned whether insurance policies would cover engine damage caused by using E20 fuel. E20 refers to petrol blended with 20% ethanol, part of India’s plan to reduce carbon emissions and dependency on imported oil.

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However, not all vehicles are designed to run on this blend, raising concerns about engine compatibility and potential repair costs.

Responding to the discussion on X , ACKO General Insurance stated that engine damage due to incorrect fuel use would not be covered under their standard policy. The insurer categorised this as “gross negligence” on the owner’s part. A screenshot shared online showed ACKO writing,

“Engine failure due to any fuel isn’t an accident, and thus not covered under standard insurance policy.”

Have a look at it,

Reddit

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DGP Gaurav Pradhan posted a tweet as well regarding the same,

Insurance companies are rejecting claims on faulty engine replacement if you use E20 petrol for ‘incorrect fuel usage’@nitin_gadkari ethanol minister totally destroyed the automotive Sector with his love for Ethanol blended fuel for his sugar companies. pic.twitter.com/vTB72BDmZx

— Gaurav Pradhan 🇮🇳 (@OfficeOfDGP) August 8, 2025

To this, ACKO replied,

Hi Gaurav, we’d like to inform you that if a vehicle breaks down and the customer has opted for Roadside Assistance as part of their policy, we’ll support them, regardless of the fuel used. (1/2)

— ACKO Support (@ACKOSupport) August 9, 2025

However, engine failure due to any fuel is not an accident and thus not covered under a standard insurance policy. -Team ACKO (2/2)

— ACKO Support (@ACKOSupport) August 9, 2025

In simpler terms, ACKO reaffirmed saying that if a car owner knowingly uses fuel that could harm their vehicle, even if it’s legally available like E20, the resulting damage would be treated as a preventable mistake, not an unforeseen mishap. Since motor insurance policies typically cover accidental damage, not damage caused by negligence, such claims would likely be rejected.

Here is how netizens are reacting to ACKO’s stance on E20 fuel insurance

The screenshot of ACKO General Insurance’s clarification on E20 fuel quickly went viral on social media platforms, where it ignited a heated discussion. The insurer’s statement that engine failure due to fuel usage is “not an accident” and falls under “gross negligence” sparked a wave of concern and criticism among netizens.

Reddit users weighed in with a mix of outrage, sarcasm, and skepticism. Some questioned how ACKO would weather the backlash, while others speculated on corporate takeovers and linked the ethanol push to political and business interests. Several users alleged that the move disproportionately benefits certain industries, especially those producing ethanol as a byproduct, while leaving ordinary vehicle owners at risk of hefty repair bills without insurance protection.

Meanwhile X (formerly known as Twitter) users also showcased their outrage. The discussion highlighted a deeper frustration over India’s rapid shift towards ethanol-blended fuels without adequate consumer awareness. Many pointed out that in countries where similar fuel transitions happen, public protests and government-backed safeguards often accompany the rollout. In contrast, Indian motorists fear being caught off-guard, especially those with older, non-E20-compatible vehicles, and facing expensive consequences.

With India pushing ahead on its ethanol adoption goals, the viral Reddit thread underscores the urgent need for clear manufacturer guidelines, transparent government communication, and insurance policies that address this new reality. Without them, many drivers could find themselves in a costly bind, with neither the automaker nor the insurer stepping in to help.

Have a look at some of the comments made by netizens

Check out the reactions made by netizens on Reddit,

Check out the reactions made by netizens on X, formerly known as Twitter,

Dear Vehicle Owners: The Government of India has decided to blend pure petrol with 20% ethanol. E20 fuel is incompatible with most vehicles, so insurance companies may reject claims if you use it.

Ultimately, customers bear the consequences of using E20 fuel.

So thank you… https://t.co/q7UGVhFaVP pic.twitter.com/TuqGzB6rWl

— M K 🇮🇳 (@ManishKoparkar) August 8, 2025

My car isn’t E20 compatible & if anything happens to engine, no insurance will be provided.

What kind of open scam is this? Why are we not given a choice between E10 and E20? https://t.co/jpGBOVNiGU

— Anuradha Tiwari (@talk2anuradha) August 8, 2025

What is covered under Engine-protection add-on and how the insurance companies can deny citing the damage using Ethanol20.

An example 👇 https://t.co/8auXt1PqOn pic.twitter.com/bpIYPEu11n

— Kapil (@kapsology) August 8, 2025

Even the Insurance companies are accepting that no claim is admissible in case of incorrect fuel usage.

If you have a car purchased before 2023, you are in serious trouble due to Ethanol 20. https://t.co/8auXt1PqOn

— Kapil (@kapsology) August 8, 2025

To say that it is going to affect a lot of people would not be so wrong. What are your thoughts on the matter? Do share via the comments below.