Bengaluru, 17th January 2024: Digit Insurance, one of India’s leading digital full-stack insurance companies, announced it has launched a comprehensive EV Shield add-on cover under its Motor Own Damage policy for four-wheeler and two-wheeler electric and hybrid vehicles.
The Indian EV market has seen significant growth with Jan-December 2023 period seeing sales of 15.29 lakh electric vehicles. A specific add-on cover has been launched by Digit to meet this rising demand and address the unique insurance needs of EVs. India’s EV market is pegged to become a $266 billion market* with projected sales of 1 crore EVs per year by 2030.
The add-on cover will come with three optional additional coverages to protect against any loss or damage to the electrical panel for the vehicle charging point, and vehicle charger including charging cable, and also offer roadside assistance services specific to EVs.
The add-on will cover damages to the battery or electric motor due to accident or external means, and also pay for any expenses incurred for repair or replacement of the battery due to water ingression and short circuit. The add-on will be offered under the Motor Own Damage policy of a vehicle and will provide all relevant vehicle coverages similar to any Internal Combustion Engine (ICE) vehicle.
Speaking about the launch of EV-specific add-on coverage, Mayur Kacholiya, Head – Motor Product, 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 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.”
The add-on cover will also offer three optional coverages to the customers to provide comprehensive coverage to the vehicles. The three coverages are:
i. Electrical panel for vehicle charging point: Charging point electrical panel of a two-wheeler EV can be expensive and can be in the range of 8%-15% of vehicle cost and any loss or damage to the same can lead to significant loss. Under this coverage, one can cover any loss or damage to the electrical panel for vehicle charging point, including damage or loss to animal attack or scratch.
ii. Vehicle charger and charging cable: The charger used to charge an EV and the cable provided for the same can be costly. Any damage to the same can lead to losses worth tens of thousands of rupees. This add-on cover will protect both your charger as well as charging cable against any loss or damage. The coverage can be taken for both mounted as well as portable charger.
iii. EV Roadside Assistance: As EVs run on limited charge, the probability of them requiring roadside assistance is higher. Under this coverage, one can arrange for a portable mobile generator in case the vehicle runs out of charge. In case the vehicle battery is swappable, one can also get the same replaced with a charged battery. The vehicles will also be provided other roadside assistance services like towing or any other vehicle repairs, etc.
The add–on will be offered to both EVs as well as hybrid vehicles (electric and petrol/diesel). In case of a claim, the policyholder simply needs to notify the insurer within three days. The entire claims process will be 100% digital and the insured will not need to submit any physical documents.
Digit is one of India’s fastest-growing digital full-stack insurance companies. The company reported a motor gross direct premium (GDP) growth of 57.08% as on 30 June 2023 compared to GDP growth of 32.95% in FY23. For the 9 months ended December 31, 2022, the company commanded a motor market share of 5.3% compared to market share of 4.5% in FY22.!
Source: %Vahan Dashboard; !Digit Insurance DRHP March 2023 and DRHP Addendum November 9, 2023.