Mumbai, June 05, 2024 – On World Environment Day, ICICI Lombard General Insurance, a top-tier general insurer in India, unveiled its latest research report, “Electric Vehicle Adoption and Its Impact on Motor Insurance.” As electric vehicles (EVs) accelerate their presence on Indian roads, this timely study sheds light on how the surge of EVs is transforming the motor insurance sector. With data from over 500 EV owners in India’s major metro cities, the report reveals evolving consumer behaviors, new risks, and emerging market trends.
The allure of EVs stems from their promise of reduced emissions and lower fuel costs. The research not only delves into the motivations behind this green shift but also explores the challenges and opportunities it presents to the insurance industry.
Sheena Kapoor, Head of Marketing, Corporate Communications & CSR at ICICI Lombard, remarked, “With India aiming for net zero emissions by 2070, the rise of EV mobility is inevitable. Predictions suggest that 70% of all vehicles will be electric by 2030. We are witnessing a shift from consumerism to minimalism and a growing sense of environmental responsibility. At ICICI Lombard, we are proactively developing innovative insurance solutions to meet the unique needs of EV owners, offering comprehensive coverage that includes traditional risks as well as specialized benefits like battery replacement and 24/7 roadside assistance.”
Key Takeaways from the Study
A Green Revolution on Wheels
In an era increasingly driven by sustainability, ICICI Lombard’s study shows that an impressive 77% of EV users are motivated by reduced emissions. This eco-consciousness is even higher among younger drivers, reaching 81%. Additionally, 73% of respondents cite reduced fuel costs as a key reason for switching to EVs.
Navigating New Challenges
Despite the enthusiasm for EVs, there are significant challenges to widespread adoption. Top concerns include battery charging time (61%), limited driving range (54%), and insufficient charging infrastructure (52%). The high initial cost is a major hurdle for first-time car buyers, highlighting the need for ongoing innovation and support in the EV sector.
Empowered Choices in EV Insurance
Awareness of EV-specific motor insurance policies is notably high, with 91% of consumers informed about them. Car owners are particularly aware, indicating strong market understanding. When choosing insurance, premium cost and claim settlement experience are crucial. Consumers are also keen on comprehensive coverage, with 24/7 roadside assistance and battery replacement being top priorities.
A Testament to Excellence
ICICI Lombard is recognized as a trusted leader in EV insurance, consistently ranking among the top three providers. Customer satisfaction is high, with 90% of ICICI Lombard EV insurance owners expressing contentment. Over 80% of claimants are satisfied with the claim settlement process, and 77% praise the expertise of the surveyors.
Charting the Path Forward
The study highlights the importance of educating consumers early about the benefits and nuances of EV insurance. As ownership tenure increases, so does awareness of essential insurance terms, presenting a golden opportunity for targeted educational initiatives. ICICI Lombard is poised to lead with customer-centric innovations and exceptional service.
This report underscores the critical role of EVs in India’s journey towards sustainability and the evolving landscape of motor insurance tailored to meet the needs of eco-conscious consumers.
