– By Mr. Rajive Kumaraswami, MD &CEO at Magma HDI General Insurance
In recent years, the automotive landscape has witnessed a remarkable surge in the demand for electric vehicles (EVs). One of the primary drivers behind the soaring demand for EVs is the growing awareness of environmental issues, the high demand for electric vehicles is a promising sign of shift towards sustainable and eco-conscious transportation.
Conventional vehicles release pollutants which contribute to poor air quality and adverse health effects. Electric vehicles (EVs) play a pivotal role in enhancing air quality by eliminating tailpipe emissions associated with traditional internal combustion engines.
By embracing electric mobility, communities can experience a notable improvement in the Air Quality Index (AQI), promoting cleaner air and mitigating the impact of transportation on public health. As EV infrastructure expands and charging methods become more sustainable, the environmental benefits amplify. Moreover, advancements in battery technology have addressed concerns related to EV range and charging infrastructure. The development of fast-charging stations and improvements in battery efficiency have alleviated range anxiety, making electric vehicles a viable and convenient option for daily commuting as well as long-distance travel.
According to The Motor Vehicle Act 1988, getting a car insurance policy (Third Party) is mandatory before they can ply the road. However, it’s important to understand that opting for third-party-only insurance doesn’t provide coverage for accidental damage to your vehicle. Therefore, a careful evaluation is essential before selecting insurance to ensure that your insurance choice aligns with your comprehensive coverage needs.
Traditional Motor Insurance policies are governed by the Indian Motor Tariff covering the basics such as accidental risk, theft risk, and third-party risk. These policies usually do not include battery coverage as it is classified as a wear and tear component of the vehicle. However, battery cost comprises 50%-60% of the total electric vehicle cost, and recent fire incidents in EVs have raised concerns among customers regarding their safety and insurance coverage. Their advanced technology and unique features need specialized coverage hence there was a need for Insurance companies to offer specialized policies/add-ons to cover these risks.
It is recommended that every individual must go for a package policy with the right set of add-ons to get complete and comprehensive protection. While most insurance add-ons are agnostic of vehicle type i.e., ICE, EV, or Hybrid, few add-ons are specifically designed for each type. An EV is a pure electric vehicle hence add-ons that are explicitly designed for ICE vehicles like Engine Protect are not applicable for EVs However, a Hybrid vehicle is a combination of ICE as well as EV technology hence, one should opt for ICE-specific add-ons like Engine protect as well as EV specific add-on.
By opting for coverage tailored to EV specifics, you enhance the protection of your investment and ensure peace of mind in the face of potential risks while reinforcing the environmentally friendly aspect of driving electric.
