Electric Car Insurance Policy

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.

What is Electric Car Insurance?

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 –

  • Firstly, car insurance policy for EV is mandatory. The Motor Vehicles Act requires you to have the coverage to drive a car legally. So, buying car insurance on electric cars falls under the ambit of legality and is needed.
  • The coverage offered by car insurance secures your electric cars. You can protect your savings as the policy covers your financial liability in the case of car-related troubles. In the case of bodily injury or death of another individual, the coverage can come in very handy.
  • When insuring an electric car, if you opt for a comprehensive policy, you get covered for theft too. The policy compensates you for the loss suffered if your car is stolen.

Features of Electric Car Insurance

The salient features of an electric vehicle insurance policy are as follows –

  • There are two types of EV insurance plans – third-party liability insurance plans and comprehensive plans.
  • Third-party EV car insurance plans are mandatory. They are specified by the Motor Vehicles Act and cover third-party legal liabilities.
  • Comprehensive insurance for EV cars is voluntary and recommended for better protection.
  • If you buy a new electric car, you need compulsory third-party e-vehicle insurance for three years. You can buy your own damage cover on an annual basis, though.
  • Comprehensive car insurance for electric cars is available on an annual basis only.
  • You can buy and renew your electric insurance policy online through the insurance company’s website.
  • Comprehensive electric vehicle insurance plans cover the damages that your car might suffer as well as its theft.
  • Optional coverage benefits, called add-ons, are also available with comprehensive electric vehicle insurance plans. These benefits are optional and help in enhancing the scope of the policy.

How to buy insurance for Electric Vehicles online?

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 –

  • Visit https://www.kotakgeneral.com/ and provide your car’s registration number to start.
  • Click on ‘Get a Quick Quote’ to generate the potential premium of the policy.
  • Enter the details of your car like the brand, make and model, fuel type, registration city and year.
  • Review the quote.
  • Customise the policy by adding add on covers and click on ‘Buy Now’.
  • Fill in your personal details, and the policy will be issued.

It is as simple as that!

Types of Electric Vehicle Insurance in India

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 –

1. Third-party liability only policy

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.

2. Comprehensive 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.

What is covered under comprehensive Electric Car Insurance policy?

1. Third-party physical injury/death:

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.

2. Third-party property damage:

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.

3. Natural calamities:

If the car gets damaged due to natural calamities like lightning, earthquake, flood, hurricane, storm, etc., the cost of repairs will be covered.

4. Man-made calamities:

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.

5. Theft:

If the insured car is stolen, the electric car insurance policy will pay for the loss that you have suffered.

6. Personal accident cover:

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.

What is not covered under Electric Car Insurance policy?

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

Third-party Insurance Premium for Car

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 –

The power output of the car 1-year third party premium 3-year third party premium
Up to 30KW Rs.1780 Rs.5543
31 KW to 65 KW Rs.2904 Rs.9044
66 KW and above Rs.6712 Rs, 20,907

Add-on covers for Electric Car Insurance

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 –

Add-on covers Description
Consumables Cover Consumables are one-time items used in repairs of the car like nuts, bolts, screws, lubricants, etc. The cost of these consumables is covered under the add-on which is otherwise excluded from coverage.
Depreciation Cover Depreciation is not covered under car insurance. In the case of claim, the cost of depreciation is deducted from the cost of repairing or replacing the parts. However, with the Depreciation Cover add-on, depreciation gets covered. It is not deducted from the claim amount and the claim payout is higher.
Engine Protect If the engine suffers a damage due to water seepage or water logging, the add-on would cover such damages and pay for the repair or replacement of the damaged engine.
Return to Invoice In the case of theft or total loss, the add-on pays the difference between the Insured Declared Value and the invoice value of the car.
24X7 Roadside Assistance This add-on allows 24X7 assistance in the case of emergencies or when the car breaks down in the middle of the road. You can get assistance for flat tyres, fuel refill, jump starting the battery, etc.
Tyre Cover Damage to tyres is not covered under the normal car insurance policy. However, if you opt for the Tyre Cover rider, the damages to tyres are included in the scope of cover.
Daily Car Allowance In the case of a claim, when the car is under repairs, the add-on pays a daily allowance which you can use to cover the cost of alternate transportation.
NCB Protect The No Claim Bonus allows discounts in premiums and the discount can go up to 50% if you don’t make a claim for five successive years. However, in the case of a claim, the NCB is lost. If you choose the add-on, the NCB stays protected even after a claim.
Loss of Personal Belongings This add-on covers the financial loss that you might suffer if personal belongings are stolen from the insured car.
Key Replacement The add-on covers the cost of replacing the car keys if you lose them.

How to File a Claim for an Electric Vehicle Insurance?

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 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:
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

Tips to Choose the Right Electric Car Insurance Policy

Here are some tips on how to choose a car insurance policy –

  • Choose a comprehensive car insurance plan for wider coverage.
  • Choose an electric car insurance that offers the most inclusive scope of coverage
  • Look for the widest network of cashless garages that allow easy cashless claims.
  • Check the claim settlement process of the insurance company. A company that offers the easiest claim settlement process will be the right choice.
  • Choose suitable add-ons so that you can avail the maximum coverage against the electric car insurance.
  • Go for a hassle-free policy which is easy to buy, service and claim.
  • Ensure that the IDV is high so that you get a higher claim payment in the case of theft or total loss.

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Frequently Asked Questions About Electric Vehicle Insurance Policy

1. Can I insure my electric vehicle in India?

Yes, you can ensure your electric vehicle in India under a third party or a comprehensive car insurance plan.

2. Is vehicle insurance required for electric vehicles in India?

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.

3. What is the cost of electric car insurance in India?

The cost of an electric car insurance policy depends on various factors. These factors include the following –

  • Type of policy
  • Make, model and variant of the car
  • Registration year and location
  • Insured Declared Value (IDV)
  • Available discounts
  • Add-ons selected
  • After these factors are assessed, the premium is determined.

4. Which is more expensive- Electric Vehicle Insurance Plans or Motor Insurance Plans for diesel or petrol cars?

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.

5. How do I find the right type of insurance plan for my electric vehicle?

You can compare the car insurance policies offered by different companies online and find the right insurance company for your electric car.

6. Are comprehensive motor insurance plans mandatory for EVs? How is it beneficial?

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.