Enveloped in the banner of electric vehicles, the year 2022 has been dubbed as the year of innovation and digitalization, especially for India.
As India became the fourth largest country in the world in 2022 under the assessment of the automotive industry, it contributes to about 6.4% of India’s GDP.
However, one of the biggest challenges for this rising industry is the rising cases of high fuel prices with ever-increasing pollution.
So, the most cost-effective solution to combat these issues came with the entry of electric vehicles. Supported under the Green India mission wherein the government stressed the environmental impact of conventional vehicle use and promoted electric vehicles (EVs), the sales of EVs have risen rapidly in the last few years.
Due to this, electric vehicles have slowly emerged as one of the most common preferences to be seen on Indian roads.
To meet the diverse demands of individual buyers, automobile manufacturers are now developing several kinds of electric vehicles to keep up with the increasing demand.
Noticing the growing trends, the Need for Electric Vehicle Insurance in India came up as industry experts stressed the significance of electric vehicle insurance coverage in the long term.
Is Electric Vehicle Insurance in India Necessary?
The introduction of electric cars and bikes has upgraded Indians’ commuting experiences. Equipped with features like noiseless driving, pollution-less commuting, and the bonus of fuel price savings, it’s a no brainer that they are quickly becoming the next generation modes of transportation.
Starting with some of the reasons Why Electric Vehicle Insurance in India is Necessary, let’s start:
- Regardless of their perks, EVs come at an additional cost to the vehicle owner as the manufacturing industry of these vehicles is still in a nascent stage.
- We don’t have to remind everyone about the latest instance of EV fires occurring in several parts of the country.
- Despite being built with advanced technology, EVs and their parts repair require hiring specialists which adds more value to their repair costs in case of damage.
- Similarly, the batteries of these electric vehicles and other specialized parts are more expensive than conventional ones, which implies a high replacement cost.
To put it bluntly, having Electric Vehicle Insurance in India in advance can save EV owners from burning a hole in their pockets if they encounter any damage or depreciation in that period.
Other Reasons for Opting for Electric Vehicle Insurance in India
Under the mandatory Motor Vehicle Act related to motor vehicles in the country, the Act mandates that all vehicles whether Electric or ICE ones must have vehicle insurance to ply legally on public roads otherwise owners will be fined heftily.
With road accidents, a common occurrence on Indian roads, an accident claim involving other drivers, pedestrians or properties, the vehicle owner will have to shell out for the injuries or damages from their pocket. However, with Electric Vehicle Insurance in India, under the third-party liability cover, they do not have to worry about any financial or legal liabilities.
Personal Accident Cover
Apart from ensuring the safety of the vehicle, the majority of insurance policies also offer personal accident cover that is added to the policy till the insured period.
Points to Look Out for While Insuring Electric Vehicle
IDV or Insured Declared Value
In simpler terms, IDV can be defined as the maximum claim value that an insurance provider agrees to pay if there is a theft or the damage to the insured vehicle is beyond repair. Being highly expensive, any loss sustained in such circumstances would also be high. Therefore, EV owners must pay attention to the value of IDV before signing for Electric Vehicle Insurance in India which would be sufficient to cover the loss in case of theft or damage.
When looking for add-on covers in an Electric Vehicle Insurance policy, the EV owner must keep the costs in mind and should pay attention to the type of electric vehicle-related costs added in the policy like damage due to battery charging, leakages to the car battery, vehicle towing to the nearest charging point, charging connector damage, etc.
One should opt for the hassle-free feature of the cashless facility if mentioned, as this allows for immediate repairs at partner stores if the driver is stuck midway due to a vehicle breakdown.
In a Nutshell…
Despite having a fixed premium rate for third-party liability insurance as decided by the Insurance Regulatory and Development Authority of India (IRDAI), the cost of Electric Vehicle Insurance in India is still very high.
However, being a developing market treading its way in the global space, Electric Vehicle Insurance should be kept on priority to avoid future hassles.