Page 27 - The Insurance Times September 2024

Effect of Electric

Vehicles on

Motor Claims

Shashi Bhushan
Council Member
IIISLA East Zone

Electric vehicles (EVs) differ from combustion engine vehicles, particularly in terms of torque. The
torque of an electric vehicle is more linear, providing instant maximum torque, whereas in a
combustion engine, maximum torque is reached gradually after the vehicle achieves a certain speed
and engages in regenerative braking.

E lectric vehicles (EVs) differ from combustion engine vehicles is very poor. Even when available, the cost is about

vehicles, particularly in terms of torque. The
50% higher than similar parts for diesel and petrol vehicles.
These parts include:
torque of an electric vehicle is more linear,
providing instant maximum torque, whereas in a
combustion engine, maximum torque is reached gradually High voltage battery
Battery control unit
after the vehicle achieves a certain speed and engages in Battery cabinet
regenerative braking.
Battery box
In India, conventional scooters, three-wheelers, four- Charger system
wheelers, tractors, and commercial vehicles are rapidly Electrical parts
being replaced by electric vehicles. On average, more than
In India, batteries are not repairable due to the high cost
3 million vehicles in India are now operating on electricity.
With the introduction of electric vehicles, the conditions of of repairs, making the battery the highest liability in
insurance policies, the style and constraints of surveys, claim insurance claims. Another significant cost is the driver’s
admissibility, salvage value, and the nature of reparability airbag system. In India, the frequency of airbag system
have all undergone changes. replacements is 10% higher compared to diesel and petrol
vehicles due to the higher collision risk.
Many imported components lack child parts in India, forcing Fiber and plastic parts, such as thin foil strips used in bumpers
major replacements instead of repairs. The reparability and cost and other components, are not repairable in the event of
of repairing EVs are very high. Based on our market survey, it an accident, contributing to higher loss assessment costs.
is observed that the repair cost of electric vehicles in India is
30 to 35% higher than that of petrol and diesel vehicles. Electric vehicles have a higher collision risk, as mentioned
earlier. The use of plastic and other fragile materials
In India, the availability of technical parts for electric increases the chances of damage in the event of an accident.

The Insurance Times September 2024 25