As electric vehicles become increasingly common on Indian roads, insurers are modifying policies to cover complex, high-value components like batteries, amidst rising claims linked to negligence and damage.
As electric vehicles become more common on Indian roads, insurers are being forced to adapt coverage for batteries, charging equipment and other high-value components that can be far more expensive to repair than parts on conventional cars. Aditya Kumar, head of motor underwriting at Digit Insurance, said these specialised systems can make EV claims more complex, even if premiums remain broadly competitive with those for petrol-powered vehicles.
One of the biggest issues is the battery itself. Digit says its EV Shield add-on covers the battery, electrical panel, charger and charging cable against accidental damage or loss, while industry commentary has also warned that battery-related negligence is becoming a frequent trigger for disputes. SMC Insurance said nearly 40% of EV claims it examined were flagged for battery negligence, with overcharging, deep discharging and repeated fast charging among the behaviours that can undermine battery health.
The claim process is usually straightforward once an accident is reported. Policyholders are typically asked to file the claim, submit photographs or video through a self-inspection link and provide documents such as the registration certificate, insurance policy, driving licence and valid pollution certificate. For used vehicles, the registration should already be transferred into the current owner’s name, as that can reduce delays during settlement.
Digit also says EV owners should consider roadside assistance cover, especially because a vehicle can be stranded by battery failure or loss of charge. Depending on the policy, help may include a mobile charging van or towing to the nearest charger, workshop or home. Standard extras such as zero depreciation, return-to-invoice, consumables cover and tyre protection can further broaden protection.
At the same time, owners need to understand what their policy excludes. Business Standard reported that using non-original chargers can jeopardise battery cover, while improper charging and negligence may also lead to rejected claims. Damage from pre-existing faults, wear and tear and consequential losses may be excluded too, and claims after floodwater submersion can be affected if the driver tries to restart the vehicle. Kumar said choosing the correct insured declared value is also important because it sets the ceiling for a total-loss payout.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
