The Motor Vehicles Act, 1988, mandates that all motor vehicles, including electric cars, must be insured with at least a third-party insurance policy. This policy covers damages caused to third parties in the event of an accident.
Automakers are developing a variety of electric vehicles to meet the diverse needs of private buyers, as demand for EVs grows. New-age insurance companies are offering vehicle insurance for EVs as they become more popular. Insurance companies like Bajaj Allianz are providing assistance for EVs.
Is the battery covered by Insurance?
The EV industry is rapidly growing but the replacement of batteries is an expensive affair. There exists a question in the mind of the buyers that whether the battery will be added in the insurance or not.
EV batteries are required to be changed after a period of time according to its use. There is no such pertaining policy regarding the coverage of batteries in insurance policy till now. Some of the insurance companies do cover it as an add-on. There is no coverage if the battery is stolen.
The batteries go through a process of charging and discharging due to which the efficiency goes down with time. The manufacturers provide a warranty for their batteries and car insurance doesn’t includes vehicle battery coverage.
What coverages are typically included in an EV policy?
- Third-party liability: This coverage pays for damages that you cause to other people or property in an accident.
- Own damage: This coverage pays for damages to your own electric vehicle in an accident.
- Fire and theft: This coverage pays for damages to your electric vehicle that are caused by fire or theft.
- Roadside assistance: This coverage provides you with roadside assistance services, such as towing and jump-starting.
