Electrical autos insurance coverage demand surges 16 instances in 3 years Delhi NCR leads with 18.3 per cent market share Report

Electrical autos in India: The demand for Electrical autos (EVs) insurance coverage has witnessed a big upswing, with adoption rising a staggering 16 instances in simply three years, in keeping with the inner information of Policybazaar. The personal sector insurer stated in a report that the share of insurance coverage insurance policies for EV vehicles, which stood at a mere 0.50 per cent in FY23, has expanded to 14 per cent in March 2025, standing at 8.2 per cent. Observing the evolving developments, Amit Chhabra, CBO of Common Insurance coverage at Policybazaar stated, “The accelerating adoption of EV insurance coverage indicators India’s shift towards sustainable mobility. With EV insurance coverage share rising practically 16-fold in simply three years, shoppers aren’t solely adopting electrical autos but additionally recognizing the necessity for tailor-made safety.”

The corporate’s information reveals that the proportion has greater than doubled over the previous 12 months, with the variety of insurance policies growing from 10,000 final 12 months to twenty,000 this 12 months. The electrical scooter in market dominates this phase, making up 98-99 per cent of insured two-wheelers. The adoption of EV is concentrated in prime 5 metro cities- Delhi-NCR, Bangalore, Pune, Chennai, and Mumbai-Thane–which accounted for 55 per cent of all EV insurance coverage insurance policies bought. Delhi-NCR witnessed a big 18.3 per cent of the market share, adopted by Bangalore at 16 per cent, Pune at 7.6 per cent, Chennai at 6.7 per cent, and Mumbai-Thane at 6.4 per cent.

The information means that the tier 1 cities dominates the EV insurance coverage market, capturing 58 per cent of all insurance policies. The tier 2 and three cities account for 30 per cent and 12 per cent respectively, as per the information. The information reveals that the EV shoppers aren’t solely buying primary protection however are additionally more and more choosing complete insurance coverage packages that provide added safety.

In style add-ons for EV vehicles embody Zero Depreciation, Roadside Help, Battery Cowl, Key & Lock Substitute, Consumables, Bill Value Safety, and Tyre Safety. For 2-wheeler EVs, add-ons like Battery Protector (for theft or injury) and Charger Cowl are particularly designed for electrical autos, alongside extra widespread add-ons resembling Zero Depreciation and Roadside Help.