V/D/C NEWS:
Insurance premiums on two-wheeler electric vehicles (EVs) may rise as insurers reassess risk based on recent fires and malfunctions. While deaths and injuries due to accidents will be covered under existing insurance plans, EV makers may have to compensate for damage or loss of life due to manufacturing defects.
There have been multiple two-wheeler fires said to involve batteries recently, with some even resulting in loss of life. This prompted roads, transport and highways minister Nitin Gadkari to caution manufacturers, saying the government will order a recall of faulty vehicles and impose penalties on any company found to be negligent in its processes.
"We are monitoring the claims experience for electric vehicles, including the instances of fire that are coming up," said Adarsh Agarwal, chief distribution officer at Digit Insurance. If more such events take place, the company could incorporate such risk while pricing premiums, he said .
A risk-based approach to pricing may be taken as and when the facts of incidents and the probable controls around them are clear," said Sanjay Datta, chief, underwriting and claims. EV insurance premiums haven't been affected by the recent incidents, he said.
Okinawa announced a recall of 3,215 units of its Praise Pro electric scooter last month "to fix any issue related to batteries." Ola said it will recall 1,441 vehicles that will "go through thorough diagnostics across all battery systems, thermal systems as well as safety systems." Pure EV is recalling 2,000 units of its ETrance+ and EPluto 7G models.
