Electric vehicle (EV) insurance policy issuance has witnessed an extraordinary 670% surge between FY25 and FY26, reflecting the rapid adoption of EVs across India. However, despite this explosive growth, EVs still represent barely 1% of the total insured vehicle fleet.
Key Insights: Comprehensive insurance premiums for EVs are 20–40% higher than comparable petrol vehicles, primarily due to the higher cost of battery components and specialised repair requirements. Insurers are developing EV-specific products covering battery degradation, charging equipment damage, and electric component failures. The growth presents both opportunity and challenge for the motor insurance segment.
Source: Hindu BusinessLine (June 8, 2026)