MUMBAI: Private insurer Acko General Insurance on Monday launched an “Extended Battery Warranty” scheme targeting electric vehicle (EV) owners. The policy is designed to boost EV affordability by enabling banks to lengthen loan terms and reduce monthly instalments.
“This will really make life easier for our customers and lead to faster adoption of EVs across the country,” said Animesh Das, VP – Motor Underwriting, ACKO.
The first of its kind policy protects battery life for up to four or five years and provides performance coverage of up to 60,000 kms. Additionally, the comprehensive plan includes EV components with batteries and is transferable to a new owner in the event of a sale, boosting resale value, ACKO said in a press release.
Developed in collaboration with Ola Electric and Ather Energy, the insurance plan is part of Ecko’s broader strategy to set up EV infrastructure by partnering with Original Equipment Manufacturers (OEMs) and providing comprehensive insurance plans to customers.
“The Indian EV journey has been an aggressive growth story that has fueled demand for customized safety solutions among customers. Our research report found 79% of respondents seeking these solutions,” Das said.
The report also highlights that 67% of EV owners want to have an insurance policy with their EV.
“It will address existing bottlenecks and thus revolutionize the fast-evolving EV industry,” Ecko said.
India’s EV market is expected to grow at a CAGR of 44.5% between 2020 and 2025, with a whopping 223% growth in EV sales in 2022. According to a research report by ACKO, 49% of EV car owners believe that the cost of battery replacement is a significant part. EV ownership. Furthermore, 66% believe that battery life lasts only between two and five years, and most EV users believe that charging behavior has a definite role in a vehicle’s battery life.
ACKO plans to disrupt the EV space by introducing innovative products and exploring partnerships with several other OEMs to offer comprehensive coverage for EVs, the insurer said in a statement.
India’s EV industry is flourishing on strong demand EV sales cross one million units in FY23, Two-wheelers made up for the bulk of EV sales in FY23.
However, according to the Society of Manufacturers of Electric Vehicles (SMEV), the delay in subsidy distribution under FAME-II has slowed down manufacturing.
The subsidy allows for a reduction of about 35% in on-road prices, leading to the manufacture of one million electric two-wheelers, five lakh electric three-wheelers, 55,000 electric four-wheelers and 7,000 buses. one more Rs 10,000 crore has been allocated under FAME-II for EV charging stations. By October 2022, at least 64 EV manufacturers had registered to receive the incentive.
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