IAG warns of harmful products in fuel tanks

They cause unnecessary inconvenience and an increasing cost to insurance, it says

IAG warns of harmful products in fuel tanks

Insurance News

By Krizzel Canlas

Insurance company IAG New Zealand is warning vehicle owners about the dangers of Diesel Exhaust Fluid (DEF) being mistakenly added to their fuel.

There has been an increasing number of insurance claims arising from incorrectly poured DEF in a customer’s fuel tank, according to IAG general manager claims services Dean MacGregor.

“At IAG, we are consistently receiving claims related to this, but the issue has significantly increased recently as these additive products become more available in some fuel station forecourts and unstaffed truck stops,” MacGregor explained. “The cost to put the vehicle back on road can be tens of thousands of dollars.”

IAG’s most expensive repair to date was on a near new Toyota LandCruiser, which cost approximately $40,000.

“In addition to the cost to repair, the customer was also without their vehicle for a significant period of time,” MacGregor added. “It is important to note that not all insurance policies will provide cover for damage caused by DEF and others have a sub-limit which may not cover the full cost of repairs.”

The Motor Trade Association (MTA) said any part of the fuel system and engine contaminated by additives cannot be cleaned out and that all parts have to be replaced. In case of a vehicle still under a manufacturer’s warranty, not having the vehicle repaired via an approved process could void the warranty.

MTA sector manager for energy & the environment Ian Baggott pointed out that people putting the wrong fuel in the tank has always been an issue in New Zealand. These include customers accidentally putting petrol into a diesel vehicle (or products like Ad Blue or Go Clear in their fuel tanks), which causes major damage and substantial repair costs.

“Should petrol be put in a diesel vehicle or vice versa, the most important thing to remember is to not to start the vehicle,” he added. “The fuel needs to be drained and replaced. Some service stations are equipped to handle such situations but, if not, they should be able to put you in touch with a service provider who can assist.”

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