The Hidden Costs of EV Ownership

Why Insurance Premiums of EVs Are Different

- SANJIV BAJAJ

ELECTRIC VEHICLES (EVs) are no longer part of the future. They're in our parking lots, charging points, and on family WhatsApp groups debating the next purchase. But as people shift to EVs, what gets overlooked is a basic detail—insurance.

The fine print While buyers do their homework on subsidies, range, battery, many forget EV insurance works differently than traditional insurance.

According to Indian laws, every EV must have a third-party liability policy, not based on engine capacity, but on battery size, in kilowatt-hours (kWh). It is mandatory both under the Motor Vehicles Act and the IRDAI guidelines.

Skipping this can lead to this: