Summary:

India's electric vehicle (EV) insurance market has seen remarkable growth, expanding 16 times over three years. The share of EV car insurance policies jumped from 0.50% in FY23 to 14% by March 2025, demonstrating the country's growing preference for sustainable transportation. Similarly, insured two-wheeler EV bookings now comprise 7-8% of all two-wheeler insurance policies under five years, with policy numbers increasing from 10,000 last year to 20,000 this year. Notably, electric scooters dominate the segment, representing 98-99% of insured two-wheelers. Metro cities remain the primary contributors to this surge, with Delhi-NCR, Bangalore, Pune, Chennai and Mumbai-Thane accounting for 55% of all EV insurance policies. Delhi-NCR leads with an 18.3% market share, followed by Bangalore at 16%, Pune at 7.6%, Chennai at 6.7% and Mumbai-Thane at 6.4%. Tier-I cities capture 58% of policies, while tier-II and tier-III cities represent 30% and 12%, respectively.

Consumers are increasingly seeking comprehensive insurance packages tailored for EVs, often adding specialized coverage options. Popular add-ons include Zero Depreciation, Roadside Assistance, Battery Cover and Tyre Protection. For two-wheeler EVs, additional covers like Battery Protector and Charger Cover are gaining traction, offering protection against damage or theft. This rising preference for specialized insurance reflects heightened consumer awareness and the industry's proactive response to the evolving EV ecosystem. India's insurance market is rapidly adapting to support the shift toward greener transportation.

Source: IBEF

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