Introduction:
The electric vehicle (EV) market is still developing in India and people looking to buy an EV may have questions related to EV Insurance. As India gradually evolves from fuel-powered vehicles to electric vehicles, automobile insurance is also evolving accordingly. This transition demands the need for policies that take into consideration the intricacies of EVs. Here, EVJoints brings you a comprehensive blog talking about electric vehicle insurance, its important aspects and how it differs from regular auto insurance.
Many insurance companies have started offering specialized policies for EVs. These policies focus mainly on components such as an EV’s battery, motor & its charging apparatus. Some big names in the Indian insurance sector that offer EV insurance are Bajaj Allianz, HDFC Ergo, Tata AIG, Digit Insurance, Acko, etc.
IRDAI & EV Insurance:
The Insurance Regulatory and Development Authority of India (IRDAI) is the apex body of the insurance sector in India. It issues EV insurance rates for the law-mandated ‘Third-Party’ EV insurance in India. To promote EVs, IRDAI has stipulated a 15% discount on third-party insurance premium rates. Third-party insurance is mandatory as per the Motor Vehicle Act. However, it is recommended that people opt for a package policy with the right add-ons to get complete & comprehensive protection.
IRDAI-notified premium rates for EVs:
The determination of premium for third-party EV insurance policies is based on a process similar to that of conventional fuel-powered vehicles. The IRDAI sets these premium and offers a 15% discount on EVs. The table below shows the present annual premium rates notified by IRDAI with respect to electric cars & electric two-wheelers (including scooters):
Difference between Conventional Vehicle Insurance & Electric Vehicle Insurance:
Tailored electric vehicle insurance is the need of the hour due to the jump in EV sales in the country. Unlike conventional vehicles, electric vehicles need specialized coverage for specific components like battery, charging equipment & motor. Some policies even cover home EV chargers.
Many EV insurance policies offer coverage specifically for the battery. As the battery is the most important (and priciest) component of an EV’s value, having it covered is crucial. Conventional vehicle insurance typically focusses on the overall value of the vehicle without specific coverage for components.
Is it compulsory to have EV Insurance?
Yes, much like fuel-powered vehicles, it is a legal requirement to have at least a third-party insurance coverage for all electric vehicles.

Types of EV Insurance:
Third-party EV insurance: Third-party insurance policy is required for all EV owners as per the Motor Vehicles Act. It covers liabilities arising from third-party injuries or property damage caused by the insured EV. However, it does not cover accidental damages to the insured vehicle.
Comprehensive EV insurance: This is the preferred insurance for EVs as it provides both third-party, vehicle damage coverage and optional add-ons. Comprehensive coverage protects your EV from damage resulting from unforeseen events like accidents, theft & natural disasters.
Add-on covers for EVs: Various add-ons for EVs include depreciation cover, extended battery cover, charging cable cover, enhanced circuitry cover, roadside assistance, etc.
Depending on the type of EV insurance you choose, you may receive third-party coverage, or with comprehensive EV insurance, you receive coverage for both third-party and insured vehicle damages. With a comprehensive EV insurance policy, you can customize your policy with add-ons for a slightly higher premium.
Below, we present an example with the Tata Tiago EV as our subject. In online insurance portal PolicyBazaar, tariffs for third-party & comprehensive plans of Bajaj Allianz are as follows:
Conclusion:
As the electric vehicle market in India expands, EV insurance is set to transform accordingly. By staying informed about costs & coverage options, prospective EV buyers can make the best decisions for insuring their vehicle. EV insurance is not just a legal obligation but also a step towards protecting your investment.
For more blogs on EVs & EV Charging, visit us at EVGuide by EVJoints.