Non Life Insurance
Buying insurance for your electric vehicle? 6 things to keep in mind
EV insurance typically covers liabilities such as accidental damage, fire, natural calamities, riots, theft of the insured vehicle, and third-party injuries or damages to their property.
With fuel prices rising steadily and growing environmental concerns surrounding heavy carbon emissions of internal combustion engine (ICE) vehicles, electric vehicles (EVs) have started gaining traction in India. Low maintenance costs and government-friendly policies have also aided the increased uptake of electric vehicles.
The central and state government are taking encouraging steps towards building a cleaner and greener transportation system to aid the goal of making India a leading electric vehicle market by 2030. For instance, the government’s new EV policy on battery swapping with interoperability standards announced during the 2022 Union Budget will aid in the faster adoption of EVs in the country.
The government, under section 80EEB, also provides individuals with a one-time tax exemption of up to Rs 1.5 lakh on interest paid on a loan taken to purchase an EV vehicle. The Insurance Regulatory and Development Authority of India (IRDAI), too, in March 2020 asked insurers to incentivize EV users and offer a 15 percent discount on motor third-party insurance premiums.
According to government data, a total of 3.11 lakh electric vehicles were sold in 2021; this rose to 4.19 lakh in 2022. The wider adoption of EVs in the country has led to higher demand for EV insurance. Just like vehicles with ICE, electric vehicles also need insurance to drive on Indian roads. The type of covers offered – Own Damage and Third-Party Liability — for electric vehicles are the same as ICE vehicles.
EV insurance typically covers liabilities such as accidental damage, fire, natural calamities, riots, theft of the insured vehicle, and third-party injuries or damages to their property. New-age insurers offer all types of motor insurance products like the standalone third-party cover, standalone own-damage cover, comprehensive cover or a bundled long-term cover for new vehicles.
Here are some pointers to help you make an informed decision while buying insurance for your EV.
When purchasing insurance, look out for other benefits offered by the insurer like cashless repair, smartphone-enabled self-inspection, and the option for customizing IDV. Customer support, the availability of add-on options, and the Claim Settlement Ratio (CSR), which is the total number of claims closed by the insurer, are also important as these will aid in a smooth customer experience. In India, the EV space is still evolving, and with the improvements in the charging infrastructure, more people will be opting for electric vehicles in the future.
Source : Financial Express