Electric vehicle (EV) insurance claims are proving more expensive than those for comparable internal combustion engine (ICE) cars, according to data from Policybazaar. The average EV claim severity stands at ₹41,543, compared with ₹36,185 for ICE cars, marking a 14% higher cost.
Higher EV Repair Costs Drive Claims
The data covers cars within their first three years of ownership and the ₹10–15 lakh price range, excluding large-loss claims. Policybazaar attributes the higher claim costs to:
- Expensive battery systems and electronics
- Imported EV components
- Limited EV repair infrastructure
- Higher replacement costs for specialised components
Around 80% of EV owners also opt for at least two insurance add-ons, compared with 77% for diesel and 75% for petrol cars.
Battery Protection Gains Popularity
Battery protection cover adoption has increased sharply from 51% to 70% in six months. The cover can address risks such as water ingress and power surges, subject to policy terms.
Policybazaar also notes that battery replacement can account for 40–50% of an EV’s total vehicle cost, depending on the model.
EV SUVs Record Highest Claim Frequency
EV SUVs recorded the highest claim frequency at 31 claims per 100 insured vehicles, followed by hatchbacks at 28 and sedans at 26.
Monsoon Pushes Claim Costs Higher
Monsoon conditions significantly increase EV claim severity. Average claims rise to nearly ₹65,000, compared with ₹52,000 during the rest of the year—a 25% increase.
East India Sees Highest Claim Frequency
East India recorded the highest frequency at 41 claims per 100 EVs, followed by North India at 34 and West India at 32. Tier-II cities also recorded higher frequency than Tier-I and Tier-III cities.
The data highlights the evolving insurance risk profile of EVs and the growing importance of specialised coverage as electric mobility expands.
