Insurance for electric vehicle: Is it mandatory?

Hello people. This article discusses about insurance for electric vehicle and is it mandatory. This year looks like a very good year for electric vehicles in India. With the Green India Mission raising awareness about the environmental impact of conventional vehicle use, electric vehicle sales have increased significantly.

Electric vehicles are gradually but steadily becoming more common on Indian roads.  Industry experts suggest that the demand for EVs will only increase in the coming years. Therefore it is critical to have electric vehicle insurance coverage in place.

If you have an electric vehicle, you know that your insurance is similar to a petrol or diesel-powered vehicle. Insurance regulator IRDAI has come up with a mandate.  Effective from June 16th, 2019, third-party liability insurance for private electric cars in India has been made 15% lower than that of general private cars of similar type.

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Tata AIG soon plans to launch the Auto Secure e Vehicle Comprehensive Policy. It is designed for electric cars. It aims to cover own damage as well as damage caused if the electric car battery bursts while charging. It will also cover the standard third-party liability for damage to property and death or bodily harm.

Customers wil have the option to but motor insurance with or without battery cover. This is because an electric car battery makes up approximately 40-60% of the cost of the vehicle, which is a result of the high cost of the Li-ion electric car battery.

Importance of insurance for electric vehicles

With advantages like noiseless driving, pollution-less commuting, and added savings from cutting out petrol and diesel use, electric vehicles are becoming the new-age modes of transportation.

However these benefits come at an additional cost to the vehicle owner. For instance, as these vehicles are built with advanced technology, their repair also necessitates hiring specialists and an increase in repair costs in case of damage.

Moreover the batteries of these cars or bikes and other specialized parts are expensive, implying a high replacement cost. In that case, having a vehicle insurance policy in place can save you from burning a hole in your pocket if there is any damage or depreciation.

Ensure you purchase your electric vehicle insurance for the following reasons:

Legal Mandate

The Motor Vehicle Act governs the laws related to motor vehicles in the country. The Act mandates that all vehicles have vehicle insurance to ply legally on public roads.

Third-Party Liability

In case of an accident claim involving other drivers, pedestrians or properties, you will have to pay for the injuries or damages from your pocket. However, with a third-party liability cover, you do not have to worry about any financial or legal liabilities.

Protection against Damages

In the event of an accident, your car might also get damaged. Whether the damage to your car is due to your mistake or someone else's mistake, a car insurance policy will take care of the repairs.

Personal Accident Cover

Car insurance policies also offer personal accident cover for the insured. This means if the insured passes away after an accident or incurs permanent damage. The nominees of the policy will receive the sum assured, which can offer some financial assistance to the family.

Things to consider before purchasing an EV insurance

There are a few things to consider when choosing a coverage option for your electric vehicle. Some of them are mentioned below.

IDV or insured declared value

IDV refers to the maximum claim value that an insurance provider agrees to pay if theft or damage of a vehicle is beyond repair. You know electric cars and bikes are expensive, the loss sustained in such circumstances would also be high. As a result, the IDV must thus be sufficient to cover the loss in case of theft or damage.

Add-on benefits

When looking for add-on covers under an electric vehicle insurance policy, keep the costs in mind. Some of the electric vehicle-related costs include damage due to battery charging, leakages to the car battery, charging connector damage, vehicle towing to the nearest charging point, etc.

Cashless facility

Claiming becomes hassle-free if the plan includes a cashless facility, which allows for immediate repairs at partner stores if you are stuck in the middle of a road due to a vehicle breakdown.

Hope this article on insurance for electric vehicle and is it mandatory is useful to you. To conclude, ensure that you insure with an optimum vehicle insurance policy. To read about electric car vs petrol/diesel car comparison please visit Electric Car Vs Petrol/Diesel Car: Price, Maintenance and Future Scope