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With the world going green to protect the environment, electric cars have become need of an hour. They are the future of four-wheelers as they save fuel costs and also keep the environment clean. Today, electric cars have become popular as many people are opting for these environment-friendly vehicles. However, before driving a vehicle on Indian roads, just like any other car, there is a mandatory requirement for car insurance for electric vehicle too.
The Motor Vehicles Act of 1988 requires every electric car to carry valid electric car insurance coverage when driving on Indian roads. Just like a driving license is necessary, so is car insurance for every car owner.
Similar to the car insurance policy for petrol and diesel cars, the EV car insurance policy offers financial protection to your vehicle against liabilities such as accidental damage, fire, natural calamities, riots, theft of the insured vehicle and third-party injuries or damages to their property. For instance, if you are involved in an accident, and your car causes physical injury to another individual, you will incur a financial liability for the injury that your car caused. The EV insurance policy will take care of this financial liability. It will compensate the individual for the financial loss if your car is damaged and needs repairs, the e-vehicle insurance policy will pay for the repair costs.
Depending on the type of electric auto insurance policy you choose, if you suffer a covered loss, the EV car insurance policy will pay compensation for the financial loss that you suffer. The insurance for EV cars will, thus, secure you financially and also take care of the mandatory requirement of driving the car.
Why buy insurance for electric cars?
An electric vehicle insurance policy is important. Here are the reasons why –
The salient features of an electric vehicle insurance policy are as follows –
Thanks to the popularity of the internet and the development of technology, you can now buy electric vehicle insurance online. It is easy, simple, and quick, and you get coverage for your electric car in an instant.
To buy electric car insurance online, the process is quite simple. Kotak General Insurance also allows you to buy electric vehicle insurance online. Here are the steps that you can follow –
It is as simple as that!
There are two main types of electric vehicle insurance plans that are available in the Indian market. These electric vehicle insurance types are as follows –
This policy covers the basic legal mandate of third-party financial liabilities. If your car causes physical injury, death or property damage against any third party, the policy will cover the financial loss that the third party has suffered. However, damages suffered by your own car are not covered under this type of electric vehicle insurance policy.
As the name suggests, a comprehensive policy is one that offers an all-inclusive scope of coverage. The policy covers the mandatory third-party legal liability as well as the damages that the insured car might suffer. So, if your car is damaged due to a natural or man-made calamity, the comprehensive policy will bear the financial loss that you have suffered.
If your car causes physical injury or death of another individual, the financial loss suffered by the individual or his family will be compensated by the policy. Injuries and deaths are covered for an unlimited amount.
If your electric car damages a property belonging to another individual, the policy will compensate the loss caused to the individual. The coverage for property damage is available for up to Rs.7.5 lakhs.
If the car gets damaged due to natural calamities like lightning, earthquake, flood, hurricane, storm, etc., the cost of repairs will be covered.
If the car is damaged due to man-made calamities, the repair costs will be covered. Such calamities include fire, riots, malicious acts, strikes, explosions, implosion, etc.
If the insured car is stolen, the electric car insurance policy will pay for the loss that you have suffered.
The electric car insurance policy offers a personal accident cover for the owner/driver of the car. Under this cover, if the driver/owner suffers accidental death or permanent total disability in an accident involving the car, a lump sum benefit is paid.
1. Mechanical or electrical breakdowns
2. Depreciation and normal wear and tear due to usage
3. Driving the car without a valid driving license
4. Driving outside India
5. Driving under the influence of alcohol, drugs or any other intoxicating substance
6. Criminal acts, hazardous activities or participation in adventure sports
7. Consequential losses
8. Using the car against its limitations of use
9. Damages due to war, mutiny, rebellion and nuclear perils
The third-party liability insurance premium for a car is fixed by the Insurance Regulatory and Development Authority of India (IRDA)). IRDAI is the regulatory body of the insurance sector. It fixes and reviews the basic third-party liability premium of motor insurance policies.
For the latest the financial year 2022-23, IRDAI has fixed the basic third-party liability premium for electric car insurance policies. The premium rate, with effect from 1st June 2022, is as follows –
As mentioned earlier, comprehensive car insurance plans allow optional add-ons to enhance the coverage scope and customise your policy.
Kotak General Insurance believes in the maximum coverage for your electric car. As such, it offers a range of add-ons to choose from. The add-ons that you can get are as follows –
We at Kotak General Insurance have simplified the claim process of your electric car insurance policy. To make a claim, here’s the process that you should follow –
Cashless Claim Settlement
Step 1: Call us on 1800 266 4545 (8 a.m. – 8 p.m.) and intimate us about your claim with the details of your policy.
Step 2: Once your claim is registered, our customer support executive will provide you with a Claim Reference Number.
Step 3: You will be required to submit the relevant documents, which may include your Driving License, RC Copy, and Policy FIR Copy, in accordance with the Policy terms and conditions.
Step 4: An arrangement will be made by us for an inspection, it will be conducted within 24 hours if a claim is reported on a working day, or the next working day if the claim is reported on a Sunday or a public holiday.
Step 5: On cashless facility confirmation, the vehicle can be repaired at a preferred network garage, on payment made directly to the garage.
Step 6: You will only be required to pay the deductible as mentioned in the policy, and the depreciation value, salvage, etc., as informed by the surveyor.
Reimbursement Process
Step 5: The vehicle can then be repaired by the insurer followed by the payment for the same by the insurer.
Step 6: Submit all bills, payment receipt along with your policy details to us, and we will make the payment within 7 working days of completion of the documentation
Here are some tips on how to choose a car insurance policy –
Get electric car insurance for all the popular EV models.
Yes, you can ensure your electric vehicle in India under a third party or a comprehensive car insurance plan.
Yes, vehicle insurance is a must for electric vehicles in India. The Motor Vehicles Act of 1988 mandates a basic third-party liability policy for every car in India, including electric cars.
The cost of an electric car insurance policy depends on various factors. These factors include the following –
The price of an electric vehicle is higher than the price of a petrol or diesel vehicle. Since the value of the vehicle is higher, the insurance cost is higher.
You can compare the car insurance policies offered by different companies online and find the right insurance company for your electric car.
No, the comprehensive car insurance plan is not mandatory. It is voluntary. Though not mandatory, the comprehensive policy is beneficial because it offers a wider scope of coverage and provides all-around protection.
Disclaimer