Electric cars Insurance in India – All you need to know

In recent years, the demand for EV has been a trend. However, eco-friendly cars were first manufactured in India in 1993 by Eddy Current controls (India) in collaboration with Yaskawa Electric Corporation (a Japanese company), and our government has permitted merchandising of that car. Because of the low sales of these cars, the manufacturers of these EVs have been stopped in India. However, now EVs have gained fame, and several companies have started to produce EV.

Various studies depicted that the sales of EVs have doubled from the year 2020 onwards. As our world is developing, and the customers’ inclinations are also developing. People prefer EVs more than gasoline engine vehicles. Many conscious consumers may get confused about what EV will be great for them. Also, while the market of EVs is developing in India, buyers might have trouble about where and which would be the best electric car insurance for them.

What are Electric vehicles?

We have seen from childhood that cars, buses, and motorcycles are used to run with fuels such as petrol and diesel. And the EVs are one of the great inventions in the whole automobile industry. Vehicles which are run by electricity are called electric vehicles. There are also different types of EVs are available in the market including:

• Battery vehicles: The most known type of EV is the electrically oriented vehicles. These types of vehicles only run through electricity, and have no other source for power. Which makes them more eco-friendly vehicles. However, the main issue of these cars is, they run for a smaller distance at once.

• Conventional and plug-in hybrid vehicles: Conventional and plug-in hybrid vehicles are vehicles that can both run with fuels and electricity.

What is EV Insurance?

Insurance policy for cars provides financial security to your car against accidental harm. Comparatively, to the car insurance of petrol and diesel cars, eco-friendly car insurance is an essential part to protect your precious car. Therefore, it is important to go for an eco-friendly car insurance policy, to avoid additional pocket expenses.

Is EV Insurance compulsory?

In accordance with the Motor Vehicles Act in 1988, it is mandatory that every car in India should have at least one third-party car insurance cover. These rules are also applicable on EV as well.

Why should you have EV insurance?

There are multiple benefits you can get by insuring your EV. Some benefits of eco-friendly car insurance are explored below.

• You can get personal accidental cover: As stated in the Personal Accident cover law, one can get complete financial repayments against body injuries, partial or total dysfunction, and death due to an accident. For this complete financial repayments, you have to purchase a Third-party Insurance plan.

• Protection against third-party liabilities: Your car insurance policy will also cover liabilities including if you have damaged or injured any third-party property.

• You will be free from expensive repair bills: Some insurance plans also cover own created damages, fire, riots, and natural calamities. Basically, you do not need to pay for any repair bills in the event of any damages.

• You can get rid of Law-directed sanction: Since several insurance plans include law-directed Third-party cover, you will be secured from non-compliance penalties regarding car insurance.

EV Insurance plans available in India:

• Third-party Cars Insurance Policies: As discussed earlier, it is stated in the 1988 Motor Vehicle act that every vehicle in India must have at least a car insurance policy. With the third-party insurance policy, you will be protected against the liabilities which might appear due to third-party injuries or damages caused by your EV into third-party properties. However, do remember that accidental damages to your car will not be covered with this insurance plan.

• Comprehensive Car Insurance Policies: Comprehensive car insurance policies are the perfect plans for EVs. These policies cover both third-party damages and own damages.

So, those are the two types of insurance plans which you can go for. Most people would apparently select the new e-car comprehensive policy as it covers both third-party damages and self damages. Now that you know the insurance plans, let’s talk about what would and wouldn’t be covered under the new comprehensive policy.

What will be covered under the E-car comprehensive plan?

• Damages to third-party properties.

• Destruction to your car because of an accident.

• Injuries to your car caused by fire.

• Injuries or accidental death of the car owner.

• Injuries due to natural calamities including earthquake, storms, flood, etc.

• Damage caused by riots.

• Loss due to car theft.

What would not be covered under the E-car comprehensive plan?

• Damages caused by mechanical faults.

• Injuries as a consequence of harsh driving.

• Losses due to driving an EV without a proper car license.

• Damages caused due to consuming alcohol or any intoxicating substances.

Is E-car Insurance cost higher than fuel vehicles?

Generally, every motor insurance policy depends on the price, location, model, and age of that particular car. We usually purchase EVs, because they are eco-friendly, and also provide cost-effective run duration. The prices of EVs are slightly higher than our usual IC motor vehicles. Since, the insurance premium policies depend on the price of the vehicle, which is why EV insurance premiums are somewhat higher compared to IC engine powered vehicles.

Reasons behind the high insurance premium rate

• Electric cars are pricey: E-cars are the ideal option for transportation because they don’t pollute our nature. Also, E-cars are run through high-capacity batteries, and have latest-technology parts which can get damaged easily. Therefore, the prices of EV insurance premiums are set higher than IC engine cars.

• E-cars require more-maintenance: As previously mentioned, E-cars are quite expensive against internal combustion engine powered vehicles. Besides, they also require quite high maintenance as they contain many complex and costly car parts, hence, the fixing of an E-car requires high skill to repair the damaged part.Considering that, there are not many E-car owners in India, the E-car mechanics are also fewer than traditional car mechanics. This is why the repairing cost of an E-car is also higher, because the charges of a skilled e-car mechanic are higher against traditional car mechanics.

• E-cars battery replacements: E-cars run with high-powered lithium-ion batteries which come with an expiry date as well. Thus, the car owners have to interchange the batteries with a new one. Lithium-ion battery restorations can be very expensive.

Those are all the reasons causing high insurance premium rates. Now, let’s talk about the cost of EV insurance.

How much does an Electric car insurance cost in India?

Third-party insurance policy’s premium rates are usually fixed by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI has fixed the third-party insurance premium rates at 15% discount as opposed to fuel vehicles, to promote the use of EVs. However, the third-party premium rates depend on the battery capacity of the vehicles.

• The premium rate of a vehicle with battery capacity of more than 65 kilowatts is 6707 (for one month) or 20659 (for one year).

• Vehicles with battery capacity of more than 30 kilowatts and less than 65 kilowatts are 2738 (for one month) or 8104 (for one year).

• Vehicles with battery capacity of less than 30 kilowatts are 1761 (for one month) or 4492 (for one year).

Those are the approximate premium rates of EV insurance in India. However, the prices may differ from company to company, and the premium rate for e-cars depends on what type of coverage you would select. There are car insurance companies who are offering amazing insurance plans. Therefore, you can purchase an electric car insurance policy online as well.