Good News for Electric Vehicles: Insurance industry going green with their auto plans
EVs or Electric Vehicles are becoming increasingly popular in India for their eco-friendliness, economical fuel cost, lower maintenance expenses, etc.
EVs or Electric Vehicles are becoming increasingly popular in India for their eco-friendliness, economical fuel cost, lower maintenance expenses, etc. The central government has undertaken many initiatives to boost the adoption of EVs. The Ministry of Road Transport and Highways is also pushing the agenda of adopting EVs at a rapid pace in India through incentives and discounts. So, taking a cue from these developments into the EVs, the insurance industry is also gearing up for the EVs.
Vivek Chaturvedi, Head of Marketing and Direct — Online sales at Digit Insurance said, "The Insurance Regulatory and Development Authority of India (IRDAI) recently announced that Third Party (TP) premium rates for insurance of private electric vehicles will be given at 15 per cent discounted rates from FY 2019-20. It is a very high standard set by IRDAI for how industries related to automotive can help the government in raising awareness and adoption of electric vehicles in the country."
See Zee Business Live TV streaming:
He said that the policy which has been effective since 16 June 2019, is available on all TP insurance provided through several channels and underwriting offices. As third-party insurance is mandatory, insurers must make it available for the customer. Cheaper TP rates would have a direct impact on EV adoption behaviour. Earlier, there was no separate category for electric vehicles. A Niti Aayog report predicted that there could be a sales penetration of EVs to the tune of 30 per cent in private cars and 80 per cent in two/three-wheelers by 2030. The expected boost is due to such initiatives and a push from the government.
"Considering the focus by the Government as well as industry bodies for a greener and sustainable future, it is critical for consumers to adopt electric or sustainable modes of transport to achieve that vision. A small change can go a long way to build a greener environment. For now, IRDAI is supporting by cutting costs on insurance for sustainable transport. It’s time for you to take your next step for a sustainable future," Vivek Chaturvedi of Digit Insurance concluded.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
07:11 PM IST