Page 25 - Insurance Times May 2023

lower cost of ownership compared to internal combustion
Goverentment Incentives for Encourag-
engines. Following table 1 shows the classification of vehicles
ing EVs:
Table 1: Classification of Vehicles The Indian government has set a target of electrifying 30%
of the country's vehicle fleet by 2030 and has implemented
By Platform Two Wheeler
the following incentives and policies to support the growth
Three Wheeler
of the EV industry.
Four Wheeler
For Wheeler by Passenger Cars According to the Motor Vehicles Act of 1988, electric
Vehicle Type Commercial Vehicles vehicles must be insured under a third-party liability
insurance policy.
By Four Wheeler (BEV) Battary Electric Vehicle
by Propulsion type (HEV) Hybrid Electric Vehicle
The Indian government has announced tax breaks for
electric vehicle owners, and the Insurance Regulatory and
Insurance companies have begun to provide additional
Development Authority of India (IRDAI) has mandated lower
services and coverage for electric vehicles, such as roadside
third-party liability premium rates for electric vehicle
assistance, medical assistance, and dedicated coverage.
insurance. Electric and hybrid electric vehicles are eligible
for premium discounts of approximately 15% and 7.5%,
The Indian e-bike market is expected to grow from
respectively.
approximately INR 3 billion in 2019 to 17 billion or more by
2024. More electric two-wheelers were sold in the first six
The AME India Scheme: Faster Adoption & Manufacturing
months of this year than in the entire previous year. With
of Electric Vehicles (FAME) India was launched in 2015 with
an expected growth rate of more than 42%, the future
the goal of encouraging the growth and early adoption of
appears to be as bright as the present.
hybrid and electric vehicles in the country.
The changing footprints of electric bikes across the country
can be attributed to a variety of factors. Rising fuel prices, The FAME India project was launched to promote electric
pollution concerns, lower maintenance costs, government vehicles and discourage the use of gasoline and diesel
initiatives, better subsidies, and charging infrastructure for vehicles in India.
E-Vehicles are just a few examples.
The FAME-II scheme, with a budget of US$ 1.3 billion (Rs.
Advantages of EV Insurance 10,000 crore), was launched in India to support 1 million e-
two-wheelers, 0.5 million e-three-wheelers, 55,000 e-
The advantages of EV insurance is illustrated in the figure 1
passenger vehicles, and 7,000 e-buses. The scheme was
below:
extended by the government until 2024, as announced in
Figure 1: Advantages of EV Insurance the Union Budget 2022-23.

In September 2021, the Cabinet approved a
production-linked incentive programme for
the automobile industry to promote the
development of electric and hydrogen fuel
cell vehicles. In addition, there is a scheme
for Advanced Chemistry Cell Battery Storage
(PLI-ACC). The plan is to improve India's
battery infrastructure. According to the
Union Budget, the total cost of the scheme
is US$ 2.45 billion (Rs 18,100 crore), which
will be distributed to beneficiaries over a five-
year period once the manufacturing facility
is operational.
Source: https://www.bajajallianz.com/motor-insurance/
electric-vehicle-insurance.html Battery Swapping Policy: For EV adoption to be successful,

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