If you’re wondering how to do electric vehicle insurance in India, this guide will walk you through every step of the process — from understanding the types of policies available to choosing the right insurer and filing claims.
Electric vehicles are rapidly transforming the way India moves. From reducing pollution to lowering fuel costs, EVs are setting a new standard in transportation. Just like traditional vehicles, EVs also require insurance not just for legal compliance, but also to safeguard against potential damages and losses.
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Why Electric Vehicle Insurance is Important in India
EVs may have fewer moving parts, but they are not immune to risks such as accidents, battery damage, theft, and natural disasters. Here’s why insuring your EV is essential:
- Legal Compliance: As per the Motor Vehicles Act, 1988, every vehicle on Indian roads must have at least third-party insurance.
- Protection Against Damage: EVs contain costly components like lithium-ion batteries and electric drivetrains, which are expensive to repair or replace.
- Peace of Mind: It covers unforeseen incidents, giving you peace of mind while on the road.
- Government Incentives: Some insurers offer special discounts on EV insurance as part of India’s push toward green mobility.
Step-by-Step Guide to Buying Electric Vehicle Insurance in India
Step 1: Understand the Types of EV Insurance
There are two main types of insurance policies for electric vehicles:
1. Third-Party
- Mandatory by law.
- Covers damages or injuries caused to a third party (person or property).
- Does not cover damage to your own vehicle.
2. Comprehensive
- Covers both third-party liability and own-damage.
- Includes protection against natural calamities, theft, fire, and accidents.
- Highly recommended for EVs due to the high cost of spare parts and battery replacement.
Step 2: Compare Plans from Different Insurers
- Premium Costs
- Coverage Inclusions and Exclusions
- Battery Coverage
- Network Garages for Cashless Claims
- Add-ons Offered (like roadside assistance, zero depreciation)
Top insurers offering EV policies in India include:
- ICICI Lombard
- Tata AIG
- Bajaj Allianz
- HDFC ERGO
- SBI General Insurance
- Digit Insurance
- Acko General Insurance
Step 3: Choose the Right Add-Ons
Comprehensive policies allow you to opt for add-ons that increase your protection. Some useful EV-related add-ons include:
- Battery Protection Cover: Covers the cost of battery damage not covered under the standard policy.
- Zero Depreciation Cover: Ensures full claim amount without considering depreciation on parts.
- Roadside Assistance: Helps in case your EV breaks down or runs out of charge.
- Return to Invoice Cover: Offers the full invoice value (purchase price) in case of total loss or theft.
Step 4: Decide on the Insured Declared Value (IDV)
IDV is the maximum amount the insurer will pay in case of theft or total loss. For EVs, it includes the cost of:
- The vehicle
- The battery (often listed separately)
- Accessories (if applicable)
Choose an IDV that balances premium cost and claim value.
Step 5: Buy the Insurance Online or Offline
Online Method
- Visit the insurer’s website or an aggregator platform.
- Fill in your EV details (registration number, model, variant, etc.).
- Choose your preferred policy and add-ons.
- Make the payment securely via UPI, card, or net banking.
- Download the e-policy immediately.
Offline Method
- Visit a nearby branch of the insurer.
- Submit the required documents and vehicle details.
- Pay the premium and collect the physical policy document.
Step 6: Keep the Required Documents Read
- Registration Certificate (RC) of the vehicle
- Previous policy (if renewing)
- Valid government ID proof
- Address proof
- Vehicle purchase invoice (for new EVs)
How Much Does EV Insurance Cost in India?
It’ depend on these things,
- Vehicle model and variant
- Battery capacity
- IDV chosen
- Location (urban areas often have higher premiums)
- Add-ons selected
For example, insuring a Tata Nexon EV may cost around ₹12,000–₹20,000 per year with comprehensive coverage and add-ons. A simple electric scooter like the Ola S1 might cost ₹2,000–₹4,000 annually.
Claim Process for Electric Vehicle Insurance
If your EV is damaged or stolen, follow these steps to file a claim:
1. Inform the Insurer Immediately
Call the customer support number or register the claim via the mobile app or website.
2. Submit Required Documents
This includes the policy, RC, driving license, FIR (for theft), and repair estimates.
3. Survey and Inspection
An insurance surveyor will assess the damage and verify your claim.
4. Get the Vehicle Repaired
If using a cashless network garage, repairs start immediately after approval. In a reimbursement model, you pay upfront and get reimbursed later.
5. Claim Settlement
Once documents are verified and approved, the insurer releases the payment or reimburses you.
Tips to Save on EV Insurance Premium
- Install Anti-Theft Devices: Approved devices reduce premium amounts.
- Drive Safely: A good driving record helps lower premiums at renewal time.
- Bundle Policies: Insuring multiple vehicles with one insurer may offer a discount.
- Opt for Voluntary Deductibles: Agreeing to pay a small part of the claim can reduce your premium.
- Avoid Small Claims: Save your claim history for major incidents to maintain your No Claim Bonus (NCB).
Common Mistakes to Avoid
- Choosing only third-party for a high-end EV.
- Ignoring battery-related coverage in the policy.
- Not reading the fine print about exclusions.
- Delaying policy renewals and risking a lapse in coverage.
Conclusion
Buying insurance for your electric vehicle in India is simple but requires attention to detail. A well-chosen policy will not only protect your valuable EV but also keep your mind stress-free. Always compare plans, understand your coverage, and stay updated.
With India moving toward sustainable mobility, insuring your electric vehicle isn’t just a legal necessity — it’s a smart financial decision.
Some questions with answers related electric vehicle Insurance in India
Q1: Is electric vehicle this cheaper than petrol/diesel vehicles?
Yes, in many cases, electric vehicle insurance cheaper due to lower engine maintenance costs, but the battery coverage can increase the premium.
Q2: Does EV insurance cover battery replacement?
Standard policies may not cover battery replacement unless explicitly mentioned. Choose a policy with Battery Protection Cover for this.
Q3: Can I renew it online?
Absolutely. You can renew your policy online within minutes on the insurer’s website or via aggregators.