Motor insurance : The government is constantly encouraging the use of environmentally friendly options. The E20 fuel remains in India. The E20 fuel is a mixture of 20 per cent ethanol and 80 per cent petrol. The use of E20 fuel aims to reduce emissions and reduce dependence on fossil fuels. However, the concern of the vehicle owners is whether it can increase motor insurance premium and especially older vehicles?
Experts say that the answer is – at least not yet.
Bajaj Aaliyanj General Insurance Motor Distribution Head Subhashish Majumdar Said “E20- Compliment engine is designed to run 20 % ethanol and 80 percent of gasoline fuel, which is a major step towards the use of green energy and better environmental stability.”
He further said, “Insurance premium, the history of the previous claim, the type of the vehicle and the location are associated with factors. It has no connection with the type of fuel. Currently, there is no strong proof that proves that the use of E20 fuel causes any significant growth or deficiency in these risk factors. Therefore, the E20 or traditional fuel fuel types for the E20 or traditional fuel fuel. There is no effect. “
Paras Paras Prasicha, Motor Insurance of Policy Bazaar They agree with this. He said, “Elected E20 fuel has been extensively tested. These studies show that ethanol does not have any bad effect on metal or metal-koted engines. E20- Complant is being made “.
Pasaricha He further said, “If a vehicle has received the appearance from the vehicle manufacturer that it is an E20 fuel compliance, then the use of 20 fuel or circulation is unlikely to lead to insurance premium.”
Ethanol fuel is slightly more corrosive (corrosive) than lower-balance fuels. But Mashly It is said that such effects usually appear only after 10-15 years of use. Therefore, insurance companies are currently not doing risk assessment or premium adjustment based on the use of E20.
Vehicles made on old standards such as BS-IV models were not designed to handle corrosive properties of ethanol, its water absorbing tendency, or less energy output than regular petrol. As a result, there were complaints of engine performance problems and difficulties in starting in these vehicles.
However, both these experts emphasize the importance of engine protection cover, which is an additional protection cover. This especially prevents the damage caused by the water going into the engine during the flood. Pasaricha Says “Although the E20 fuel itself does not harm the engine directly, any problem arising from adulteration of fuel, wrong fuel or moisture in the engine can cause damage that does not cover under a standard motor policy.”
He further stated that if a vehicle suffers damage due to fuel related problems (such as moisture in ethanol-mixed fuel or problem of compatibility of old engines), the engine protection ad-on, can cover repair or replacement according to the policy conditions. At the moment, the E20 fuel seems to have no effect on the motor insurance premium.