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The demand for Electric vehicles (EVs) insurance has witnessed a significant upswing, with adoption growing a staggering 16 times in just three years, according to the internal data of Policybazaar.
The private sector insurer said in a report that the share of insurance policies for EV cars, which stood at a mere 0.50 per cent in FY23, has expanded to 14 per cent in March 2025, standing at 8.2 per cent Observing the evolving trends, Amit Chhabra, CBO of General Insurance at Policybazaar said, "The accelerating adoption of EV insurance signals India's shift toward sustainable mobility. With EV insurance share growing nearly 16-fold in just three years, consumers are not only adopting electric vehicles but also recognizing the need for tailored protection." The internal insurance sales data of the company suggest that bookings for the insured two-wheeler EVs accounted for 7-8 per cent of all two-wheeler insurance policies under five years. The company's data reveals that the percentage has more than doubled over the past year, with the number of policies increasing from 10,000 last year to 20,000 this year. The electric scooter in market dominates this segment, making up 98-99 per cent of insured two-wheelers. The adoption of EV is concentrated in top five metro cities-- Delhi-NCR, Bangalore, Pune, Chennai, and Mumbai-Thane--which accounted for 55 per cent of all EV insurance policies purchased. Delhi-NCR witnessed a significant 18.3 per cent of the market share, followed by Bangalore at 16 per cent, Pune at 7.6 per cent, Chennai at 6.7 per cent, and Mumbai-Thane at 6.4 per cent The data suggests that the tier 1 cities dominates the EV insurance market, capturing 58 per cent of all policies. The tier 2 and 3 cities account for 30 per cent and 12 per cent respectively, as per the data. The data shows that the EV consumers are not only purchasing basic coverage but are also increasingly opting for comprehensive insurance packages that offer added protection. Popular add-ons for EV cars include Zero Depreciation, Roadside Assistance, Battery Cover, Key & Lock Replacement, Consumables, Invoice Price Protection, and Tyre Protection. For two-wheeler EVs, add-ons like Battery Protector (for theft or damage) and Charger Cover are specifically designed for electric vehicles, alongside more common add-ons such as Zero Depreciation and Roadside Assistance. (ANI)
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