Does Your Electric Vehicle Insurance Policy Provide Coverage Against Fire?

Everyone is wondering whether an electric car insurance policy covers damages sustained as a result of fires in light of recent electric vehicle fires nationwide. Is the process when filing an insurance claim different from other vehicles? 

A comprehensive motor insurance policy typically covers fire and other accidents like theft, own damage, personal injury, and natural disasters like earthquakes, cyclones, landslides, etc. A comprehensive electric vehicle insurance policy that includes the own damage (OD) cover and the third-party liability cover will pay claims resulting from fire. Currently, there isn’t a separate item or add-on that protects EVs from fire. Claims are subject to terms and conditions set forth under the car insurance policy. *

A car could catch fire in a variety of circumstances. Let’s say the car catches fire on its own while stationary and uncharged. Spontaneous combustion is the term that is used. The motor insurance comprehensive policy then covers the claim. *

Another possibility is that the vehicle catches fire while it is stopped and the batteries are being charged; the comprehensive motor policy also covers this scenario. *

The third possibility is that a car starts to burn on its own while moving. The comprehensive motor policy also includes coverage for that situation. *

There are now two more possibilities. One possibility is that there will be a riot or strike, and someone will set fire to your car.  

Under the own damage section, the Standard Policy covers loss or damage to vehicles caused by fire. However, the fire caused by one of the policy’s exclusions is not protected. Additionally, fire is not covered by a standalone third-party electric bike insurance policy. 

Electric Vehicles Are Currently Insured In The Same Way As Other Vehicles

Liability-only and package policies are the two main types of electric car insurance. While a package policy offers coverage for both third-party and own damage, a liability-only policy only covers liability for damage done to third parties. Along with the coverages available in a liability-only policy, a package policy covers damage to the vehicle due to listed perils as stated in the policy wording. Claims are subject to terms and conditions set forth under the motor insurance policy. *

What Justifications Does The Insurance Company Have To Deny The Claim? 

The claim may be denied if the vehicle has any modifications that alter its fundamental design and may have contributed to the fire. It is advised against choosing changes made by unlicensed dealers because the vehicle’s IDV may need to be updated. Furthermore, damages resulting from overheating, oil leaks, and other mechanical flaws might not be covered. A claim will be rejected if it results from the rider or driver’s negligence or deliberate actions. Additionally, unless specifically endorsed, damages outside the policy’s Indian geographic boundaries are not covered. Claims are subject to terms and conditions set forth under the motor insurance policy.

Another possibility is that the car catches fire due to a mechanical failure. Additionally, this is not protected by the insurance for e-scooter policy. There are a few additional circumstances in which the insurance provider won’t honour the claim. For instance, your insurance claim won’t be honoured if your car is registered as a private vehicle, but its owner uses it for business purposes. 

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.