Buying insurance for your electric vehicle? 6 things to keep in mind - Insurance News | The Financial Express

Electric cars (EVs) have started to gain popularity in India as a result of rising fuel prices and growing environmental concerns regarding the massive carbon emissions produced by internal combustion engines (ICE) vehicles. Reduced maintenance costs and government laws that favour electric vehicles have also contributed to their rising adoption.

 

The government also offers individuals a one-time tax exemption of up to Rs 1.5 lakh on interest paid on loan availed to buy an electric car under section 80EEB. **

 

In March 2020, the Insurance Regulatory and Development Authority of India (IRDAI) likewise requested insurers to reward EV users by providing a 15% reduction on third-party auto insurance premiums. #

 

Here are some guidelines to assist you in choosing your electric bike insurance in a knowledgeable manner.

 

  1. Full coverage: Fuel-based vehicles are more expensive than electric ones. As a result, it is advised to choose a policy that will fully cover the car rather than a third-party cover, which will only pay for any losses to third-party people, vehicles, or property. For broader protection, look for add-on coverages that insurers offer. Depending on the insurer, different add-ons may have varied premiums. *

 

  1. Premium: Due to their more expensive repair and battery replacement expenses, comprehensive insurance coverage premiums for EVs are often higher than those for petrol and diesel models. This is due to the sophisticated technologies utilised in EVs, which raise Customers can, however, receive a 15% concession on third-party premiums, making it possible to purchase electric bike insurance at reasonable costs. But, take in mind that the premium will also be influenced by the cost of the cars and the location of the policy. *

 

  1. Add-on with zero depreciation: Electric car parts are created with advanced technology and will be more expensive. When a claim is made, zero depreciation add-on coverage is advantageous since the depreciation-based amount is waived, and the full amount owed for damages is reimbursed. For instance, batteries depreciate far more quickly than a vehicle’s typical worth. *

 

  1. Location and premium impact: The policy’s underwriting is directly impacted by the policy’s region and vehicle type. For instance, the premium may be greater in areas where theft of vehicles or vehicle parts like batteries is more common. The electric vehicle insurance provided may have a higher premium than what is given in other parts of the nation due to underwriting limitations. *

 

  1. Insured declared value: Variations in insured declared values are provided by various insurance providers (IDV). It’s crucial that you determine the current market worth of the item before looking at the IDV supplied by the insurance of your choice. Make sure to search for an insurer that provides an IDV that is as near to the market value as possible when comparing electric car insurance policies online. In the event that the vehicle is stolen or totally lost, this will be helpful. *

 

  1. Pay as you Drive (PAYD) feature add-on: Compared to fuel-powered vehicles, electric vehicles are typically driven less because they are restricted to city streets. Customers of PAYD might benefit from lower premiums for automobiles that are driven fewer miles annually. Make sure to look for insurers who provide this coverage because the premium will be economical. * ##

 

While acquiring an EV policy in India, keep an eye out for any additional perks that the insurer may be provided, such as cashless repairs, smartphone-enabled self-inspections, and the ability to customise IDV. A pleasant client experience will be facilitated by customer service, the availability of add-on choices, and the Claim Settlement Ratio (CSR), which is the total number of claims closed by the insurer.*

 

The electric car market is still developing in India, and as the infrastructure for charging them advances, more people will choose them in the future.

 

 

* Standard T&C Apply

** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.

# Visit the official website of IRDAI for further details.

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

 

 

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.