In internal combustion engines, the concept of low heat rejection (LHR) using thermal barrier coating on the surface of combustion chamber is gaining attention. Thermal barrier coating reduces the heat transfer to the cooling system, protects engine components from peak heat flux and fluctuating temperature produced during combustion and improves the performance of the engine. Information in the literature is plentiful for LHR diesel engine and only few studies exist on LHR spark ignited engine. The application of thermal barrier coating in spark ignited engine is limited by pre-ignition and knocking due to elevated combustion chamber temperature. A spark ignited engine with moderate insulation on the combustion chamber and higher octane fuel can overcome this difficulty. The objective of the present experimental study is to quantify the changes in performance and emission characteristics brought by partial thermal insulation on the combustion chamber of a four stroke spark ignited engine fueled with E20 blend. Partial thermal insulation was created by coating 0.3 mm thick Alumina ($Al_2O_3$) on the cylinder head, inlet and exhaust valves. The changes are quantified with respect to unmodified engine fueled with gasoline. The combustion parameters such as flame development and rapid burn duration are also estimated and compared. The results indicate that partially insulated SI engine when fueled with E20 improves performance and reduces emission. A maximum of 48% reduction in THC and 50% reduction in CO emission at part load was achieved.