Page 28 - The Insurance Times September 2024

Torque: Cost of Claims:
Diesel and petrol vehicles operate with diesel and petrol Based on our experience, it is observed that the claim cost
engines, respectively, while electric vehicles operate with for petrol and diesel vehicles is about 30 to 35% higher than
electric motors. The torque from an electric motor is that for electric vehicles in India. However, when considering
available instantly, providing immediate acceleration and the time required for repairs, the cost for electric vehicles
maximum capacity. In contrast, a combustion engine must is 20 to 25% higher.
reach a certain speed to deliver maximum torque. The faster
control required by drivers can increase the risk of collision. FIRE RISK: The fire risk is very high if electric vehicles are
not properly maintained.
Some vehicles feature a power differential system that
controls speed and reduces collision risks.
Battery:
Braking System & Acceleration: The battery in an electric vehicle is a sophisticated
component. If it sustains scratches in an accident or
In electric vehicles, the braking system is regenerative,
otherwise, it is very difficult to consider the battery usable,
which is crucial when driving. Regenerative braking is a
as it is always dangerous and highly prone to fire and
recovery mechanism that slows down a moving vehicle by explosion, making it unsafe. Therefore, the battery is
converting its kinetic energy into a form that can be used
considered a high-risk component.
immediately or stored for later use. A trained driver is also
essential to avoid collision risks. Salvage Value:

The recovery of salvage value is lower compared to petrol
Driving Electric Vehicles: and diesel vehicles since most components are non-metallic.
Modern electric vehicles are more sophisticated than Due to advanced technology, actual metal recovery is lower
conventional petrol and diesel vehicles. For drivers, it is than in other vehicles.
challenging to learn how to operate multi-vehicle systems,
leading to a higher accident rate in electric vehicles. Many Summary:
collisions today are attributed to driver error. Electric vehicles are being widely discussed in India for their
potential to reduce environmental pollution in cities like
Maintenance: Delhi, Mumbai, and other towns. They have contributed to
a reduction in pollution levels.
Compared to petrol and diesel vehicles, the maintenance
cost for parts, greasing, and other factors is lower in electric In a country like India, where the middle class dominates,
vehicles due to fewer moving parts. However, electric high vehicle costs lead to higher insurance premiums and
vehicles are more prone to wear on tires, brakes, and claim values. This presents a challenge for both the insured
electrical systems. and insurers to design policies that suit the electric vehicle
market, including two-wheelers, three-wheelers, and four-
Vehicle Lifespan: wheelers, in a sustainable manner.

Electric vehicles generally have a shorter lifespan than petrol An annual study on electric vehicle insurance claim data is
and diesel vehicles due to excessive wear on tires and other required to optimize the premiums for various types of
systems. electric vehicles.

Agri Ministry tells insurer to clear claims after farmers complain

Days after farmers of Parbhani district in Maharashtra complained to Agriculture Minister Shivraj Singh Chouhan about
pending insurance claims of their soybean crop, the Centre on Saturday directed the insurance company concerned to
clear the payment within 1 week. According to the Ministry of Agriculture and Farmers’ Welfare, Chouhan interacted
with farmers in Nanded on August 21. “During the interaction, the farmers informed the Union Minister about the
problem of pending insurance claims of their soybean crop. In this regard, Chouhan gave instructions to the Agriculture
and Farmers Welfare Officials to immediately resolve the problem,” the ministry said in a statement.

26 September 2024 The Insurance Times