Motor insurance, The Indian auto industry’s future appears to be electric! Battery-powered cars have been around for a while, but until now, they haven’t really made a splash.
The market for electric vehicles, or EVs as they are popularly referred to by car aficionados, is incredibly favorable right now. Large-scale government support, rising conventional fuel prices, and a 73 percent decrease in battery prices since 2010 have all worked together to turn on electric and hybrid vehicles in India.
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What are hybrid and electric cars?
Automobiles, bicycles, and other types of transportation that use battery-powered motors rather than internal combustion engines are referred to as electric vehicles.
On the other hand, hybrid automobiles use both conventional and battery-powered engines to move the vehicle.
Automobiles that are electric or hybrid have much lower pollution levels than regular vehicles. This aids in lowering atmospheric concentrations of greenhouse gases.
What benefits do electric vehicles have for India?
By 2022, the manufacturing sector’s GDP is expected to expand to 25% just from the production of electronic cars and their parts.
Additionally, widespread use of electric vehicles might reduce the need for $60 million in oil imports over the following ten years (i.e. by 2030). And finally, a 2017 study revealed that air pollution costs the economy close to 3% of its GDP; electric vehicles should dramatically lower this figure.
The promotion that electric automobiles need
The FAME Scheme (Faster Adoption & Manufacturing of Electric Vehicles) was recently introduced by our honorable Prime Minister Narendra Modi as a part of a larger plan to make India an EV-only nation by 2030.
This gave India’s e-vehicles the much-needed boost they required. This program entitles electric and hybrid vehicles to a number of benefits, including exemption from road tax, registration costs, and parking fees.
The government contributed funding under this program’s second phase, known as FAME-2, for the installation of 2,636 charging stations across India. There will be 14,000 charging points available as a result. More than half of these charging stations—1,633—will be capable of fast charging.
The announcement to subsidize the purchase of 55,000 electric and hybrid passenger cars, 7000 buses, and 10 lakh electric two-wheelers over a three-year period beginning in April 2019 was also a part of FAME-2. Up until April 2020, this subsidy had been given to 2,300 electric vehicles, 13490 two-wheelers, and 600 buses.
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Automobile insurance and electric vehicles
Electric vehicles have received a much-needed boost in this industry as well. Electric vehicles and two-wheelers did not have separate motor insurance until recently. The IRDAI, however, announced the premium rates for third-party insurance on electric vehicles in June 2019, which brought about a shift.
The best aspect is that EV premium rates are less expensive than rates for regular private vehicles and bikes in comparable categories.
Electric vehicles are, however, included in the typical motor-insurance plans that apply to gasoline and diesel vehicles when it comes to comprehensive coverage. In this scenario, rates will be determined by the vehicle’s IDV.
Of course, there are a number of ways to lower the cost of your motorcycle or auto insurance. Additionally, the No Claim Bonus offers discounts of up to 50% if you do not file a claim against your insurance. You should be able to quickly recover the upfront cost of insurance thanks to subsidies and the low operating costs of an EV.
Additionally, EV-specific auto insurance policies may become more reasonable in the future, which will allow you to purchase an electric or hybrid car while still saving money.
Therefore, it makes sense to think about electric or hybrid possibilities if you’re intending to buy a new automobile or two-wheeler.
In the long run, it can be more economically viable and is better for the environment.
Numerous advantages are available to you, such as discounts on the purchase, better financing alternatives, reduced motor insurance premiums, and exempt operational costs.
