Understanding the EV insurance landscape in India

Leading EV insurance providers are rapidly developing unique, EV-specific insurance plans. The additional difficulties brought on by the charging infrastructure and the numerous technical aspects of the cars serve as justification for this development. The automotive sector, which is through an unprecedented period of upheaval, is currently grappling with the most urgent problem: the rapid growth of EVs. The insurance industry must make sure it adapts to the changing motor vehicle environment. With the global popularity of EVs growing, insurers are in a race against time to accomplish this task. Without decades of data and expertise, it is challenging to comprehend and price the risk profile of these new vehicles. Points of discussion: 1. According to the India Energy Storage Alliance (IESA), the Indian EV market would grow at a CAGR of 36%. As per various data sources, with around 3.3 lakhs units sold across all categories in 2021, Uttar Pradesh had the largest percentage of EV sales, followed by Karnataka and Tamil Nadu. So, with this significant growth in EV sales, where do you see insurers fitting in here? 2. EV insurance is relatively costlier than insuring a normal fuel vehicle. Do you see this to be a challenge from the pricing point and how insurance is bought keeping in mind that India is a price sensitive market? 3. Can you explain the key points of an electric vehicle insurance policy? And what consumers should be aware of before purchasing an EV insurance policy in India? Note: **Views shared are purely of the speaker** Speaker Bio: Pranshu Diwan, is the Head of Ola Insure at Ola Group. Prior to Ola, Pranshu was the Chief Executive Officer at GoPlannr, and Head of Analytics and Data Science at Aditya Birla Health Insurance Company.