Electric bikes catching fire have raised concerns, but the electric vehicle market continues to expand. While this market is in its early stages, general insurance companies are recognising its potential and establishing specialised services for electric cars. In this article, we’ll delve into the electric car insurance options for your electric vehicle, continuing our exploration of the EV market’s various aspects.
Encourage Insurance For Electric Vehicles
Government policies and increasing environmental awareness are poised to boost the electric vehicle industry. The Insurance Regulatory and Development Authority of India (IRDAI) has reduced third-party liability premium rates for electric vehicle insurance, and the government offers tax benefits. Insurance companies are also seizing opportunities in this growing market by providing specialised services and coverage, such as Bajaj Allianz General Insurance’s ‘EVforAll’ service package, which includes a dedicated EV helpline, SOS services, charging information, and more. Claims are subject to terms and conditions set forth under the motor insurance policy. # **
This is in addition to the standard benefits that all car insurance policyholders receive, like roadside assistance, medical coverage, etc. A similar website called “AllthingsEV” provides details on EV options, costs, state government subsidies, nearby charging stations, etc.
Incidental Fire Shadows
EVs are environmentally friendly and may result in long-term cost savings. However, a spate of electric two-wheeler fire incidents in recent months have raised safety concerns.
Most electric vehicle accidents have been linked to electric bikes, sparing electric car insurance premiums from significant impact. Some insurers have, however, reduced concessions on tariffs for electric bikes, causing effective premiums for policyholders to increase by up to 10%. An electric vehicle’s track record plays a role; if it’s good, premiums may not necessarily rise. Despite the accidents and incidents, many industry insiders believe that such events won’t substantially impact EV insurance premiums or the growth of the EV insurance market. The number of electric vehicles on Indian roads is relatively low, and the accidents reported, such as fires, are relatively rare and have not substantially affected EV premiums. *
Exclusions And Coverage For EVs
The terms of the coverage remain the same. In comparison to conventional fuel vehicles, premiums will be higher because the acquisition cost is higher. The leading cause of this is the high cost of the batteries. Claims are subject to terms and conditions set forth under the motor insurance policy.
The ex-showroom price and third-party liability premiums account for some of the difference. The insured declared value (the sum assured applicable in case of total damage or loss of the car) will be higher for EVs due to their higher cost. Consequently, the premium will also be higher. You can use a car insurance calculator to check on the costs of your premium.
Vehicle insurance companies need to create covers specifically for EVs despite no specific exclusions. Hence, there is a gap. *
Replaceable batteries are standard on electric bikes. Unlike electric bikes, which have batteries outside, two-wheelers powered by petrol or diesel have their batteries installed inside the vehicle’s body. Since these batteries are susceptible to theft, a typical comprehensive motor policy currently needs to cover this aspect, the man says. He continues that insurance companies are working to create specific add-ons. Claims are subject to terms and conditions set forth under the motor insurance policy. *
* Standard T&C Apply
**Tax benefits are subject to change in prevalent tax laws.
#Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.