Insurance claims for electric vehicles (EVs) are costing more than those for conventional internal combustion engine (ICE) cars, with the average EV claim 14% higher, according to Policybazaar data, BW AUTO WORLD reported.
The average claim severity for EVs stood at Rs 41,543, compared with Rs 36,185 for ICE cars. The comparison covers vehicles in their first three years of ownership and in the Rs 10–15 lakh price range.
Policybazaar attributed the higher claim costs to expensive battery systems, complex electronics, imported components and limited EV repair infrastructure. Depending on the model, replacing the battery alone can account for 40–50% of the vehicle’s cost.
Battery protection gains importance
The data shows that EV owners are increasingly opting for additional insurance protection. About 80% of EV owners choose at least two key add-ons, including battery protection, zero depreciation, roadside assistance and consumables cover. This compares with 75% of petrol car owners and 77% of diesel car owners.
Battery protection cover has recorded a significant increase in adoption. Among EVs in their first three years, the share of owners opting for the cover rose from 51% to 70% over the past six months.
Policybazaar said the increase reflects greater awareness of risks associated with high-value battery systems, including water ingress and power surges, subject to policy terms and conditions.
Tier-II cities record higher claim frequency
EV claim frequency is also higher in Tier-II cities, with 33 claims per 100 insured vehicles, compared with 30 in Tier-I cities and 27 in Tier-III cities.
East India recorded the highest regional claim frequency at 41 claims per 100 insured EVs, followed by North India at 34, West India at 32, Northeast India at 30 and South India at 27.
Among vehicle categories, electric SUVs recorded the highest claim frequency at 31 claims per 100 insured vehicles. They were followed by hatchbacks at 28 and sedans at 26.
Monsoon pushes up EV repair costs
Weather conditions also affect EV claim costs. Average claim severity rises to nearly Rs 65,000 during the monsoon, compared with Rs 52,000 during the rest of the year, representing an increase of about 25%.
The data indicates that EV insurance risks are changing as electric vehicles become more widely used beyond major cities. Battery protection and location-specific risks could therefore become increasingly important factors for insurers and customers when assessing EV coverage.
