Electric vehicles are cool; what about insuring them? – EQ Mag Pro

Industry experts believe that the demand for electric vehicles will continue to increase in the coming years

Many automobile companies are gearing up to launch electric vehicles (EVs), and some are out with their e-vehicles already. Industry experts believe that with increasing consumer awareness and strict emission norms, the demand for these e-vehicles may continue to increase in the coming years.

Experts believe that internal combustion engine vehicles are vital contributors to environmental pollution, leading to the growing need and demand for EVs.

“Electric vehicles have come as a clean energy initiative, as they offer low or zero emissions and have become a vital part of OEM (original equipment manufacturer) business strategies. Along with the growth in the EV segment in the country, there will be a huge demand for motor insurance for electric vehicles,” said Indraneel Chatterjee, co-founder, RenewBuy, an online insurance aggregator.

In March 2020, the Insurance Regulatory and Development Authority of India (Irdai) announced that insurers would offer a 15% discount on third-party motor premiums for electric vehicles to incentivize their use.

“The government of India is also charging GST at 5% for electric cars, which is way lower than the internal combustion-powered vehicles. The impetus for the manufacture of electric vehicles has begun, and the government is moving towards a promising future,” said Chatterjee.

Authorities have also provided ₹1.5 lakh tax benefit underSection 80 EEB for interest paid under EV car loan.

Source: livemint