Fairfax Financial-promoted online non-life company Digit Insurance on Tuesday (January 16) launched an innovative add-on cover named ‘EV Shield.’
This comprehensive coverage is specifically designed for both four-wheeler and two-wheeler electric and hybrid vehicles, addressing the unique insurance needs arising from the rapid growth in the country's electronic vehicle (EV) sector.
With the Indian EV market witnessing a surge, recording sales of 15.29 lakh electric vehicles from January to December 2023, Digit Insurance aims to meet the escalating demand for specialised insurance solutions.
The company's foresight aligns with projections that estimate India's EV market to grow into a $266-billion industry, with anticipated annual sales of one crore EVs by 2030.
The EV Shield add-on cover offers an array of protections tailored for electric vehicles, including coverage for damage to the battery or electric motor resulting from accidents or external factors. It also extends coverage to expenses associated with repairing or replacing batteries affected by water ingression or short circuits.
Notably, Digit Insurance has gone a step further by providing three optional additional coverages under the EV Shield:
Electrical panel for vehicle charging point: This coverage safeguards against any loss or damage to the charging point's electrical panel, which can represent a significant percentage of the vehicle cost. The protection extends to damages caused by animal attacks or scratches.
Vehicle charger and charging cable: Recognising the potential financial impact of damage to EV chargers and charging cables, this add-on cover shields against losses worth tens of thousands of rupees. The coverage applies to both mounted and portable chargers.
EV roadside assistance: Given the limited range of EVs, the probability of requiring roadside assistance is higher. This coverage facilitates arranging a portable mobile generator in case of charge depletion or swapping the vehicle's battery if it is replaceable. Other roadside assistance services, such as towing and vehicle repairs, are also included.
The EV Shield add-on cover is extended not only to electric vehicles but also hybrid vehicles, combining electric and petrol/diesel technologies.
In the event of a claim, policyholders can simply notify the insurer within three days, and the entire claims process will be conducted digitally, eliminating the need for physical document submission.
Mayur Kacholiya, head of motor products at Digit General Insurance, said, "Our new EV-specific add-on coverage is designed to meet the evolving changes and needs of EV vehicle owners.
The severity of damage among EVs can be higher and the repairs for the same can be costly due to expensive components and the need for specialised automotive technicians. The specialised add-ons along with additional coverages will provide EV owners the much-needed protection and address the nuanced issues of electric vehicles."
