ACKO General Insurance launched an insurance plan to boost electric vehicle (EV) affordability in the country. The private insurer’s 'Extended Battery Warranty Plan,' introduced in partnership with Ather Energy and Ola Electric, provides performance coverage for up to 60,000 km.
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The Extended Battery Warranty Plan also safeguards battery life for up to 4-5 years. In addition to the battery, the plan also covers EV components. The plan is transferable to the new EV owner in case of sale. It can also increase the resale value of the EV due to the cost visibility factors for the battery and other components.
Animesh Das, Vice President, Motor Underwriting at ACKO, called India’s shift towards EVs “an aggressive growth story,” which has increased the demand for customer protection solutions. He also cited a report by his company, which stated that 79 percent of respondents were in favour of customer protection. The report also claimed that 67 percent of EV owners wanted an insurance policy for their electric vehicles.
“This is a positive sign from the new age customers who have evolved preferences and want to adopt environmentally safer alternatives for the ecosystem. We are confident that with our partnership, OEMs will be better equipped to answer the doubts in customer minds about longevity and performance of the electric vehicle. This will indeed ease the lives of our customers and promote a nationwide rapid adoption of EVs," Das said.
ACKO's Extended Battery Warranty Plan aims to reassure customers about their concerns regarding EVs’ battery life and performance. The company believes that partnering with original equipment manufacturers (OEMs) will improve the affordability of EVs in the country. Banks will be able to extend the loan duration, leading to lower equated monthly instalments on electric vehicles.
It can also address issues in the EV industry while offering a comprehensive insurance plan to consumers.
According to ‘Is the Future Electric?’ – a research report by ACKO and YouGov India, 49 percent of EV car owners feel that battery replacement costs form a substantial part of owning the vehicle. A majority of EV vehicle owners believe that charging behaviour is a big factor in the vehicle’s battery life. About 66 percent of respondents assumed that an EV’s battery life lasts only between 2-5 years.
