EV fire incidents ‘not a concern’, insurers unlikely to hike premiums

Despite rising incidents of two-wheeler electric vehicles (EVs)catching fire, General Insurance companies are not planning to increase premiums immediately as claims are still in single digits. The insurers said they will keep a watch and hoped manufacturers will improve the quality of vehicles.

The vehicle owner will be eligible for claims from an insurance company in the event of a two-wheeler EV catching fire, only if he/she has a comprehensive motor insurance policy, which includes an own damage and a third party cover. If one has only a third party insurance cover, then insurance companies will not cover the damage to the vehicle because third party insurance covers losses to the third party, not to the vehicle owner.

“When we look at the overall portfolio, if you have under written some of the better EV manufacturers, you won’t see too many claims. In our entire portfolio – we have almost 25 percent of the two-wheeler EV market share – we have seen single-digit claims. So as of now, we do not see a need to increase the pricing because this is within our appetite for losses. But if the numbers become much larger, we have to look at it,” said Bhargav Dasgupta, MD & CEO, ICICI Lombard General Insurance.