PIB Fact Check Debunks Claim Linking E20 Fuel To Insurance Rejection

The government on Tuesday rejected claims circulating on social media that using E20 fuel could result in the rejection of vehicle insurance claims.

Through its PIB Fact Check unit, the government clarified that motor insurance policies remain fully valid for vehicles running on E20 fuel and described the viral claim as false.

The clarification came after several social media posts suggested that motorists could face difficulties in obtaining insurance coverage or claim settlements if they used ethanol-blended fuel.

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

Dismissing these assertions, the government stated that E20 fuel has no impact on the validity of motor insurance policies and urged citizens to verify information through official channels before sharing it online.

Authorities also appealed to the public to report misleading content and help prevent the spread of misinformation related to fuel policies and vehicle ownership.

The clarification comes as India continues to expand its ethanol blending programme, which has become a key component of the government’s strategy to reduce dependence on imported crude oil, strengthen energy security and promote cleaner fuel alternatives.

A recent report by KPMG in India noted that the country’s ethanol blending initiative has achieved significant scale, with E20 fuel now available nationwide.

The report also examined future opportunities and challenges for the sector, including feedstock availability, supply chain management, infrastructure development and policy support as the country moves beyond E20 adoption.

The government has expanded its ethanol-blending programme to promote cleaner fuels and strengthen energy security.

Earlier this month, it launched E85 fuel and plans to increase its availability from 48 outlets to 500 by December 2026 and 5,000 by December 2027.

Officials also reassured motorists that using E20 fuel does not affect vehicle insurance coverage.

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