The data, which covers cars within the first three years of ownership and excludes large-loss claims, shows that the average EV claim severity stood at ₹41,543, compared with ₹36,185 for comparable internal combustion engine (ICE) cars in the ₹10–15 lakh price range.
Policybazaar attributed the higher claim costs to the expense of battery systems, electronics, imported components and limited EV repair infrastructure. The company noted that battery replacement costs can, depending on the model, account for as much as 40–50% of a vehicle’s total cost.
The higher repair costs are also not limited to the battery. Components such as battery cooling systems, electronics and infotainment systems can add to the cost of repairs, according to the insurance marketplace.
EV owners opt for more add-on covers
The data also points to higher adoption of additional insurance protection among EV owners. Around 80% of EV owners opt for at least two key add-ons, including battery protection, zero depreciation, roadside assistance and consumables cover. This compares with 77% among diesel car owners and 75% among petrol car owners.
Battery protection cover has seen a particularly sharp increase in adoption. Policybazaar said the proportion of EV owners opting for the cover rose from 51% to 70% over the past six months.
The company said the increase indicates greater awareness among EV owners about risks associated with high-value battery systems, including water ingress and power surges, subject to policy terms and conditions.
Monsoon emerges as a higher-cost period
Monsoon-related risks are also reflected in EV claim costs. According to Policybazaar, average EV claim severity rises to nearly ₹65,000 during the monsoon, compared with ₹52,000 during the rest of the year — a 25% increase.
The company said flooding, waterlogging and adverse weather conditions contribute to the higher claim severity during the rainy season.
EV SUVs see highest claim frequency
Among different EV body types, SUVs recorded the highest claim frequency at 31 claims per 100 insured vehicles, followed by hatchbacks at 28 and sedans at 26.
Policybazaar said EV SUVs recorded about 19% higher claim frequency than sedans, while hatchbacks were about 8% higher. The company linked the differences to variations in vehicle usage and driving conditions, including highway travel, road conditions, traffic and parking-related risks.
Smaller cities also see higher claim frequency
The data suggests EV insurance claims are not limited to major urban centres. Tier-II cities recorded a claim frequency of 33 per 100 insured EVs, higher than 30 in Tier-I cities and 27 in Tier-III cities.
At the regional level, East India recorded the highest EV claim frequency at 41 per 100 insured EVs, followed by North India at 34, West India at 32, Northeast India at 30 and South India at 27.
Paras Pasricha, Head – Motor Insurance, Policybazaar, said EVs are developing a different claims profile and that customers should consider coverage in addition to the premium while choosing a motor insurance policy.
“With average EV claim severity already 14% higher than similar ICE cars and monsoon claims rising sharply, having the right protection can make a meaningful difference at the time of a claim,” Pasricha said.
He added that the rise in battery protection adoption and the fact that nearly 80% of EV owners opt for two or more key add-ons indicate growing awareness of EV-specific risks.