Here's everything you need to know about car insurance for your electric vehicle
Here's everything you need to know about car insurance for your electric vehicle 25th February 2021
In recent times, Indians have increasingly begun opting for electric vehicles. The reasons include saving on fuels and interest in ecologically beneficial features. When deciding if an EV is the best option for you, examine how an electric vehicle varies from a car with a combustible engine. One of these distinctions is insurance, and you must understand how an electric car's insurance in India works.
So, to help you with just that, we've discussed everything about electric car insurance in this post.
The importance of Electric Car Insurance.
1. Mandatory by Indian law:
The Motor Vehicle Act 1988 of India covers all vehicle legislation. According to the act, all cars (including EVs) are required to carry vehicle insurance to operate legally on public highways.
2. Damage protection:
Appropriate protection is essential to prevent or control damages caused due to accidents. Anyone who has had any experience with automobile repairs knows about the expenses involved, especially in the case of electric vehicles. Thus, whether the damage to your automobile is due to your fault or someone else's, a car insurance policy will cover the repairs without putting pressure on your pockets.
3. Third-party liability:
In the event of an accident claim involving third parties, you will be required to pay for any damage incurred out of your pocket. However, you won't have to worry about these ramifications with third-party liability insurance. Under your car insurance cover, your insurance company handles and compensates for any loss or damage done to third parties.
4. Personal accident covers:
Personal accident cover is also mandated as per Indian law. It protects you against uncertainties like accidental death, injuries etc. Remember, it does not come with the car insurance plan but needs to be purchased separately as an add-on feature.
Please note, there are no separate insurance plans for Electric Vehicles (as of yet). The general insurance sector in India has yet to provide specialised coverage for EVs. As of now, consumers must choose from current car insurance policies designed for vehicles with combustible engines.
Also, the IRDAI has recently ordered that insurers should promote electric car insurance policies. This means that India's third-party insurance coverage for electric vehicle cars will cost lower than traditional petrol/diesel vehicles.
What is covered under Electric vehicle insurance?
• Personal accident coverage
• Third-party insurance coverage
• Car theft
• Road accidents
• Damage resulting from fire
• Repairs and replacements of parts
• Damage resulting from a natural calamity
What is not covered under electric vehicle insurance?
• Claims after drinking and driving
• Claims if the driver is found without a driving license
• Higher damage caused due to intentional negligence
• Lapsed insurance claims
To conclude, whether you own an electric car or a traditional one. Having car insurance is mandatory and acts as your financial safety cushion. Like all your expensive belongings, protect your electric automobile against damages.
Car insurance guarantees that your vehicle stays in good condition for a long time and helps you avoid monetary stress. It also pays for expenditures incurred as a result of third-party harm. Furthermore, the IRDAI has decreased third-party insurance prices for electric vehicles by 15%. So save your EV from potential damage like it protects the environment.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.