Mumbai, Maharashtra, India: Zurich Kotak General Insurance, an
insurer in India highlights the impact of electric vehicles on car insurance
policies. The automotive industry is witnessing a significant transformation
with the growing adoption of electric vehicles (EVs) in India. Electric vehicles
are becoming an attractive option for many car buyers in today's world as
consumers becoming increasingly environmentally conscious. However, this shift
is also having a great impact on the car insurance industry, bringing about
changes in risk assessment, coverage plans and premium calculations.
Why electric vehicles are prone to lower accidents?
Electric vehicles are likely involved in fewer accidents
due to its several factors such as:
- Advanced safety features: Electric
vehicles often come equipped with safety features, such as automatic
emergency braking and lane departure warning systems, which reduce the
likelihood of accidents.
- Improved weight distribution:
Electric vehicles typically have a lower center of gravity due to the
placement of batteries, making them less prone to rollover accidents.
- Reduced driver error: Electric
vehicles tend to have a more predictable acceleration and braking pattern,
minimising the risk of driver error.
Impact on car insurance policies
Insurers are adapting their policies to reflect the unique
characteristics of electric vehicles. Some key changes include:
- Lower claims: Electric vehicles tend
to have fewer accidents and lower claims due to advanced safety features
and reduced driver error.
- Coverage options for batteries:
Coverage options are provided for specific components like batteries and
charging systems for electric vehicles.
- Higher repair costs: Electric
vehicles require repair techniques and equipment, increasing repair costs
and potentially leading to higher premiums.
To conclude
As the adoption of electric vehicles continues to grow, it
is clear that the car insurance industry must evolve to meet the changing needs
of drivers. By embracing the opportunities and challenges presented by electric
vehicles, innovative car insurance policies can be developed that provide comprehensive coverage
while promoting sustainable transportation.
About Zurich Kotak General Insurance Company (India) Limited (Formerly
known as Kotak Mahindra General Insurance Company Limited)
Zurich Kotak General
Insurance Company (India) Limited is a 70:30 joint venture between Zurich Insurance
Group and Kotak Mahindra Bank. The Company got its new name ‘’Zurich Kotak
General Insurance Company (India) Limited’’ in the month of August 2024,
following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General
Insurance Company Limited. It is the youngest and one of the fastest growing
non-life insurance franchises in India.
Kotak General Insurance was established in 2015 to service
the growing non-life insurance segment in India. The company aims to cater to a
wide range of customer segments & geographies offering an array of non-life
insurance products like Motor, Health, Home etc. As a practice, the company
seeks to provide a differentiated value proposition through customized products
and services leveraging state of art technology and digital infrastructure.