Own an electric car? There is now an add-on cover for your car's batteries

The insurance add-on launched for private cars, covers expenses incurred in the repair/replacement of the batteries and any associated charges due to unexpected power surges while charging

Magma HDI General Insurance Limited (Magma HDI) on Monday launched ‘Battery Secure Add On’, an insurance product specifically for batteries of electric vehicles (EVs) and hybrid electric vehicles (HEVs). The insurance add-on covers expenses incurred in the repair/replacement of the batteries and any associated charges due to unexpected power surges while charging the battery of privately-owned EVs.

Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) have garnered attention amid technological progress and strong sustainability credentials. However, with the EV sector being relatively new, numerous questions loom regarding these vehicles and their insurance. The most significant concern for electric car owners revolves around the inclusion of car battery coverage in their insurance policies.

 

“Battery packs are a crucial component of every EV or HEV and industry analysts claim that the battery and related components constitute about 45 per cent of the cost of an electric vehicle,” said Magma HDI in a statement. 

It further noted that the prevailing insurance offerings in the market are primarily tailored for internal combustion engine (ICE) vehicles, resulting in coverage limitations for EV and HEV owners. Magma HDI’s new add-on for EV battaries claims to provide a solution for this problem.

Magma HDI Battery Secure Add On provides coverage for the following scenarios:

• Coverage includes repairs or replacement expenses for vehicle batteries.
• It also covers costs resulting from unforeseen power surges during the charging process.
• Compensation is provided for consequential damages caused by incidents such as water ingress or short circuits, leading to battery, electric motor, and HEV system loss or damage. "Consequential Damage" refers to damage indirectly caused to an insured vehicle, resulting from an insured peril, but not directly arising from it.
• Payment under this add-on is applicable when there is evidence of impact damage to the Battery, resulting in damage to the covered parts as mentioned.
• Short circuits occurring during mounting, dismounting, or vehicle charging that lead to damage or failure of the covered parts are also covered.

Coverage terms: 

• The add-on is applicable for a maximum of 5 years from the date of sale of a brand-new EV / HEV
• In case a battery swapping facility is availed by the policyholder the coverage will be provided subject to their agreement with the service provider.
• There is no capping on the number of claims in a policy period unless otherwise stated in the policy schedule.

“We believe this product will help alleviate concerns related to battery insurance, instilling confidence and peace of mind among both current and prospective EV/HEV owners. Through this customised protection, EV and HEV owners will have the specialised coverage they need, thus facilitating the wider adoption of electric mobility,” said Rajive Kumaraswami, MD and CEO, Magma HDI General Insurance.

A few other private car insurers also offere add-on coverage for EV battery packs. Earlier this year, ACKO General Insurance launched its "Extended Battery Warranty" plan that safeguards battery life for up to four or five years and provides performance coverage for up to 60,000 km. Shriram General Insurance also provides car battery insurance separately as an add-on for policyholders.