Now Reading: EV battery damage may not be covered in standard insurance policies
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EV battery damage may not be covered in standard insurance policies
EV battery damage may not be covered in standard insurance policies
Electric vehicle owners risk paying up to 40% of repair costs from their pocket if their standard insurance policy does not specifically cover the battery and high-value components, Digit Insurance's Head-Motor Underwriting…
The Story in Brief
Electric vehicle owners risk paying up to 40% of repair costs from their pocket if their standard insurance policy does not specifically cover the battery and high-value components, Digit Insurance's Head-Motor Underwriting Aditya Kumar said. The battery alone can account for nearly half the repair bill. EV repairs are more expensive because of sophisticated battery systems and specialised parts that require technical expertise. However, premiums for EVs remain competitive with petrol or internal combustion engine vehicles, Kumar added.
To protect against such costs, Digit Insurance offers an EV Shield add-on covering the battery, electrical panel, vehicle charger and charging cable against accidental damage or loss. Policyholders should check exclusions: starting a submerged vehicle may be treated as contributory negligence, and pre-existing damage or consequential losses may not be covered. Businesstoday.in reports that a roadside assistance add-on can provide mobile charging or towing up to 50 km to a charging station.
The Indian Opinion
The insurance industry is rushing to label EV coverage as a 'new challenge,' but much of this is standard fine-print reading. The real test is whether insurers will settle claims smoothly when a battery fails without an accident, something current products seem vague on. The number to watch is the claim rejection rate for EV battery damage in the next six months.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
