Effect of Electric Vehicles on Motor Claims

Electric vehicles (EVs) differ from combustion engine vehicles, particularly in terms of torque. The torque of an electric vehicle is more linear, providing instant maximum torque, whereas in a combustion engine, maximum torque is reached gradually after the vehicle achieves a certain speed and engages in regenerative braking.

- Shashi Bhushan

Electric vehicles (EVS) differ from combustion engine vehicles, particularly in terms of torque. The torque of an electric vehicle is more linear, providing instant maximum torque, whereas in a combustion engine, maximum torque is reached gradually after the vehicle achieves a certain speed and engages in regenerative braking.

In India, conventional scooters, three-wheelers, fourwheelers, tractors, and commercial vehicles are rapidly being replaced by electric vehicles. On average, more than 3 million vehicles in India are now operating on electricity. With the introduction of electric vehicles, the conditions of insurance policies, the style and constraints of surveys, claim admissibility, salvage value, and the nature of reparability have all undergone changes.

Many imported components lack child parts in India, forcing major replacements instead of repairs. The reparability and cost of repairing EVs are very high. Based on our market survey, it is observed that the repair cost of electric vehicles in India is 30 to 35% higher than that of petrol and diesel vehicles.

In India, the availability of technical parts for electric vehicles is very poor. Even when available, the cost is about 50% higher than similar parts for diesel and petrol vehicles. These parts include:

• High voltage battery

• Battery control unit

• Battery cabinet

• Battery box

• Charger system

• Electrical parts

In India, batteries are not repairable due to the high cost of repairs, making the battery the highest liability in insurance claims. Another significant cost is the driver's airbag system. In India, the frequency of airbag system replacements is 10% higher compared to diesel and petrol vehicles due to the higher collision risk.