EV insurance: Avoid non-OEM chargers to prevent battery-cover exclusions

Older EVs, typically five years and above, may not be eligible for some add-ons, and may face higher premiums

Electric vehicles (EVs) accounted for 3.95 per cent of passenger vehicle sales in 2025, according to data from the Federation of Automobile Dealers Associations (FADA). Adding momentum to the shift, India’s largest carmaker, Maruti Suzuki, entered the EV market with the launch of the e-VITARA on February 17, 2026.

 

Must-have covers for EV owners

 

Essential covers remain the same for EVs and internal combustion engine (ICE) vehicles. Third-party liability and personal accident cover for the owner-driver are mandatory under the Motor Vehicles Act, 1988. Buyers should ideally also opt for own-damage cover.

 

“A comprehensive policy is necessary to provide protection for damages incurred by accidents, theft, fire, natural disasters, and liability to other people, as required by law,” says Dinesh Mosamkar, senior vice president, consumer underwriting, Tata AIG General Insurance.

 

Personal accident cover protects the owner-driver against death or disability up to Rs 15 lakh. Buyers can also opt for cover for co-passengers. They can choose add-ons such as depreciation shield, consumable expenses cover, roadside assistance and so on.

 

EV-specific add-ons

 

An EV owner must ensure that the battery and its related systems are well protected. “Since EVs rely on a battery for propulsion, protection cover for the traction battery, battery management system, and EV drive system is crucial,” says Rakesh Kaul, chief distribution officer, retail business, Bajaj General Insurance.

 

Owners must also guard against battery depreciation. “Battery can form 50 per cent of an EV’s value. This add-on prevents costs due to depreciation during claims,” says Mosamkar. He also suggests buying Electric Surge Secure to guard against charging-related risks such as short circuits, arcing, electricity leakage during charging, and water ingress.

 

Add-ons that cover components such as power cables and chargers are also a must-have. “Battery charger should be covered against the risk of theft and damage by payment of additional premium,” says Arti Mulik, chief technical officer, Universal Sompo General Insurance.

 

Holistic policy vs base policy plus add-ons

 

EV owners have two options. “Some insurers offer EV-specific package policies combining third-party, own-damage, and EV-focused covers,” says Kaul. Alternatively, owners can buy a standard motor policy and customise it with add-ons. Kaul says a holistic EV plan can be more convenient and can reduce premiums.

 

Battery cover: Inclusions and exclusions

 

Battery cover can indemnify repair or replacement costs for damage arising from water ingress or damage to the traction battery, battery management system, and electric drive system.

 

“A battery-cover claim can be triggered by unexpected power surges during charging, electrochemical reactions that cause explosion, flames, or smoke, and short circuits during mounting, dismounting, or charging,” says Kaul.

 

Sameer Samdani, director, Insurance Brokers Association of India (IBAI) adds that it can also be triggered by mechanical shocks due to external impact, power surge.

 

Several things are typically excluded. “This add-on does not cover damage due to normal wear and tear or negligence. It also excludes damage due to tampering or usage of non-OEM chargers,” says Mulik.

 

Other exclusions include dead battery, capacity loss, negligence, manufacturing defects covered under warranty, improper handling and unsafe charging, and undisclosed modifications. Negligence such as not maintaining the vehicle or leaving it uncharged for long periods is also excluded.

 

Charging-related cover

 

Standard motor insurance may not automatically cover EV charging equipment such as home chargers and cables. “Buyers should add a specific add-on to cover the battery charger against theft and damage,” says Mulik.

 

EV owners should be aware of exclusions. “Claims can be denied if the battery or charger is not authorised by the original equipment manufacturer (OEM), or if charging is not done according to OEM guidelines,” says Tejinder Pal Singh, vice president, motor insurance, Prudent Insurance Brokers.

 

Even installation should be done according to manufacturer guidelines. “Buyers should retain installation documentation to reduce disputes at claim time,” says Saurabh Vijayvergia, founder and CEO, CoverSure.

 

Right IDV and add-ons

 

Insured declared value (IDV) is the current market value an insurer pays in case of theft or total loss. It is calculated using the manufacturer’s selling price minus standard age-based depreciation.

 

For a newer car, one should choose an IDV close to the invoice value. “Insurers may apply about 5 per cent depreciation to the ex-showroom price to arrive at the IDV. The depreciation is higher for older cars,” says Singh.

 

Set the IDV close to the vehicle’s current market price. “The high cost of components of electric vehicles, such as the battery, increase underinsurance risk,” says Vijayvergia.

 

Must-have add-ons can include zero-depreciation or return-to-invoice, and roadside assistance. Zero-depreciation cover is crucial because it covers parts without depreciation and EV parts tend to be expensive. “Return-to-invoice cover can pay the invoice value, including registration and taxes, on total loss or theft instead of only the IDV,” says Singh.

 

“Usage-specific covers such as pay-as-you-drive for city commuters, extended assistance for highway driving, and flood or electrical protection for vulnerable areas can reduce out-of-pocket costs,” says Vijayvergia.

 

Limits and conditions

 

For EVs, the admissible battery-claim amount depends on the vehicle’s age. “Battery and charger protect may only be available for vehicles up to six years old,” says Samdani.

 

EV-specific add-ons can have limits based on the IDV or component value. “Battery cover may be capped at the depreciated value unless paired with a zero-depreciation add-on,” says Mosamkar.

 

Older EVs, typically five years and above, may be ineligible for some add-ons or may face higher premiums. Insurers may also limit the number of battery-related claims per year.

 

The writer is a Mumbai-based independent journalist

 

Do’s and don’ts

 

• Consider multi-year policies to lock in premiums
• Check EV-specific gaps to avoid out-of-pocket costs even with zero-depreciation cover
• Ensure insurer has an extensive EV-ready repair network with capability for specialised electronics, software recalibration and ADAS, and adequate parts availability
• Verify charging-related coverage gaps,
• Ensure towing-to-charging-station support