Electric Vehicle Insurance in India: Introduction

Electric vehicle insurance

Electric vehicle insurance is not an unknown thing now. In June 2019, IRDA also announced third-party premium for the electric vehicle. Currently, there are very few electric vehicles are available in India.

However, the Government is taking many steps to promote electric vehicles in our country. In the coming period of time, you will see more and more electric vehicles on the road.

The government has already announced the FAME-2 scheme to boost mobility and the number of electric vehicles. FAME means Faster Adoption and Manufacturing of hybrid and electric vehicles in India.

What is an Electric Vehicle?

Electrical vehicle has no mechanism for fuel (Diesel or Petrol) consumption. This vehicle runs on chargeable batteries which you need to charge on time to time. You can charge it through a power station or plugin wall socket.

There are hybrid vehicles also available. Hybrid vehicle has internal fuel mechanism and chargeable battery as well. This means it can run on battery and fuel both. You can run your vehicle as per your convenience.

Day by day awareness of electric vehicles is increasing. In the coming time the demand for it will also increase.

Benefits of Electric Vehicles

The internal mechanism of the electric vehicle is very different than traditional conventional vehicles. Currently It is slightly expensive but it has many benefits also.

The running cost of electric vehicles is cheaper than traditional vehicles which run on diesel or petrol.

It is very environment friendly. It does not produce toxic gas. However, diesel or petrol vehicles produce a lot of toxic gas and make the environment very polluted. Ultimately it is good for health also.

It has less maintenance cost in comparison to diesel or petrol vehicle. It gets energy through chargeable batteries and required less service.

Premium is Calculated on the Basis of KW

Premium for normal conventional cars is calculated on the basis of the cubic capacity of the engine. But in the case of electric vehicle insurance, the premium is calculated based on kilowatt (KW).

Normally, there is no cubic capacity kind of thing in the electric vehicle that’s why KW is taken into consideration to calculate the premium. It has an electric motor instead of an internal combustion engine.

Third-Party Premium for Electric Two-Wheeler

Category of Vehicle in KW (Kilowatt)One Year PoliciesLong Term Policies
Not exceeding 3 KW410888
Exceeding 3 KW but not exceeding 7 KW6392792
Exceeding 7 KW but not exceeding 16 KW10144635
Exceeding 16 KW197511079
Source: IRDA

Third-Party Premium for Electric Private Car

Category of Vehicle in KW (Kilowatt)One Year PoliciesLong Term Policies
Not exceeding 30 KW17614493
Exceeding 30 KW but not exceeding 65 KW27388104
Exceeding 65 KW670720659
Source: IRDA

Conclusion

Currently, the market share of electric vehicles is very less in India. However, day by day its awareness is increasing, and governing it also boosting it. The number of these vehicles will definitely increase in the coming period. Few companies like Hyundai, Tata Motors, etc have already launched their electric vehicles.

The above-given premium is only a third-party premium. However, when you buy an insurance policy for your electric two-wheeler or car, try to purchase a comprehensive insurance policy. You should also include some add on add on cover to enhance the coverage.