61% of EV owners find battery charging time as primary concern: survey

Environmental benefit / reduced emissions and reduced fuel cost are the top 2 reasons that made people switch from fuel to electric vehicle

Seventy seven per cent  of Indians choose electric vehicles (EVs) for sustainability and reduced emissions but battery charging time is the biggest concern for EV owners in India, according to a report by ICICI Lombard General Insurance. 

The report explores how the growing popularity of electric vehicles (EVs) is transforming the motor insurance landscape. Based on a survey of over 500 EV owners in major Indian cities, the report sheds light on changing consumer preferences, emerging risks, and new market trends in EV insurance.

Key findings:

Environmental Consciousness & Cost Savings Drive EV Adoption: 

The report reveals a strong environmental push behind the EV revolution, with 77% of EV owners citing reduced emissions as a primary motivator. This eco-consciousness is particularly pronounced among younger drivers (81%). Additionally, 73% of respondents highlight reduced fuel costs as a significant factor in switching to EVs.

Challenges on the Road to EV Domination

Despite the enthusiasm, concerns regarding battery charging infrastructure remain prominent.  Battery charging time is the biggest worry for 61% of EV owners, followed by limited driving range (54%) and insufficient charging stations (52%). While users in Mumbai, Chennai and Bangalore are more concerned about battery charging time. Limited driving range is a common issue observed in Delhi and Hyderabad. High initial cost is a big concern for car buyers and specially the first time buyers.

Demand for Specialized EV Insurance

The report highlights a high awareness (91%) of EV-specific motor insurance policies.  Car owners, in particular, demonstrate a strong understanding of the need for specialized coverage. When choosing insurance, cost and claim settlement experience are key considerations. Notably, features like 24/7 roadside assistance and battery replacement are highly sought-after by consumers.

"24*7 Roadside assistance for EV-related issues and Coverage for battery replacement is what most of the people want to be covered in the insurance, and people are even ready to pay extra premium for the same," said the survey.

Only 53% of consumers are aware of coverage regarding Charging Station Damage, thus highlighting the need for better communication on the aspect.

The report emphasizes the importance of educating consumers about EV insurance benefits and complexities. As EV ownership increases, targeted educational initiatives can enhance awareness of crucial insurance aspects. 

Awareness & Factors influencing EV Motor Insurance

• 91% consumers claim to be aware of EV specific motor insurance policy; the score is significantly higher among Car owners v/s bike owners.

• Premium and Claim settlement experience are the top 2 factors for influencing consideration for EV insurance.

• Only 53% of consumers are aware of coverage regarding Charging Station Damage

• As the tenure of the insurance increases, the awareness of the EV related terms increases.

"With India aiming to attain net zero status by 2070, EV mobility will see a definite rise. Studies indicate 70% of all vehicles will be EV by 2030. We have been observing a mind-set shift from consumerism to minimalism and increased accountability towards environment conservation. At ICICI Lombard, we are proactively addressing these trends by developing innovative insurance solutions tailored to meet the unique needs of EV owners, providing comprehensive solution covering traditional risks as well as specialized benefits like battery replacement and 24/7 roadside assistance," said Sheena Kapoor – Head Marketing, Corporate Communications & CSR, ICICI Lombard.