ACKO General Insurance launched “Extended Battery Warranty” plan, targeting electric vehicle (EV) owners. The policy is designed to boost EV affordability by enabling banks to lengthen loan terms and reduce monthly installments.
“This will indeed ease the lives of our customers and promote a nationwide rapid adoption of EVs,” said Animesh Das, VP – Motor Underwriting, ACKO.
The first-of-its kind policy safeguards battery life for up to four or five years and provides performance coverage for up to 60,000 km. Additionally, the comprehensive plan covers EV components alongside the battery and is transferable to a new owner in the event of a sale, boosting resale value, said ACKO in a press release.
Developed in collaboration with Ola Electric and Ather Energy, the insurance plan is part of ACKO’s broader strategy to establish an EV infrastructure by partnering original equipment manufacturers (OEMs) and providing comprehensive insurance plans to customers.
With a massive 223% growth in EV sales in 2022, India’s EV market is expected to expand at a 44.5% CAGR between 2020 and 2025. As per an ACKO research report, 49% of EV car owners believe battery replacement costs are a significant part of EV ownership. Also, 66% assume that battery life only lasts between two to five years, and a majority of EV users believe that charging behavior has a definite role to play in the vehicle’s battery life.
India’s EV industry is thriving on robust demand, with EV sales crossing 10 lakh units in FY23. Two-wheelers made up for the bulk of EV sales in FY23.
However, delays in subsidy disbursements, under FAME-II, have slowed manufacturing, according to the Society of Manufacturers of Electric Vehicles (SMEV).
