Zurich Kotak General Insurance has introduced EV Protect, a new insurance add-on designed for electric vehicle (EV) owners in India.
The product, available as part of the company’s Car Secure policy, extends coverage to Tesla vehicles, which have recently entered the Indian market, as well as other EV brands.
EV Protect addresses risks unique to electric vehicles, offering coverage for critical components such as battery management systems, electric motors, and charging infrastructure, including fixed charging stations.
The policy also covers losses from power surges, short circuits, water damage, theft, and rodent-related incidents affecting charging equipment.
In addition to the legally required third-party liability insurance under the Motor Vehicles Act, 1988, customers can opt for broader protection and personal accident benefits.
Alok Agarwal, managing director and CEO of Zurich Kotak General Insurance, noted that the company is seeing a shift in consumer preferences toward electric mobility.
“We are witnessing a shift in the customer preferences towards more sustainable transport options like electric mobility, which is reshaping the automobile market dynamics,” he said.
He added that the launch reflects the insurer’s focus on adapting to industry changes and supporting sustainable transportation.
“EV Protect is more than just an add-on cover to your car insurance policy; it is a comprehensive ecosystem of protection that empowers EV owners to embrace electric mobility with confidence, safety, and complete peace of mind. The product embodies our commitment to innovation and sustainability. It marks a significant turning point in the EV insurance space,” Agarwal said.
The new product is available for purchase on Zurich Kotak’s website, coinciding with Tesla’s market entry and the broader adoption of electric vehicles in India.
The launch of EV Protect comes amid robust growth in the Asia-Pacific motor insurance sector.
Research from ResearchAndMarkets.com projects the market to grow from US$145.46 billion in 2024 to US$238.66 billion by 2030, representing an annual growth rate of 8.6%.
This expansion is attributed to rising vehicle ownership, evolving regulatory requirements, and increased demand for insurance protection in countries such as China, India, and Japan.
Digitalisation is reshaping insurance processes throughout Asia-Pacific. Insurers are integrating digital platforms and insurtech solutions to automate underwriting, policy management, and claims processing.
Companies such as PolicyBazaar in India, Singlife in Singapore, and ZhongAn in China are utilising artificial intelligence and automation to improve customer service and operational efficiency.
Swiss Re analysts predict that digital insurance distribution in the region will increase by more than 20% annually through 2028.
The pandemic has further accelerated this shift, with insurers adopting cloud-based systems for data management, fraud detection, and product customisation using advanced analytics.
Motor insurance providers in Asia-Pacific are increasingly adopting telematics-based models, such as usage-based insurance (UBI). These products use real-time data from vehicles or mobile devices to set premiums based on driving habits.
Countries including South Korea, Japan, and Australia are seeing higher adoption of pay-as-you-drive and pay-how-you-drive policies.
Insurers like Tokio Marine and Ping An are offering feedback and incentives for safer driving.
Allied Market Research estimates that the global telematics insurance market could reach US$21 billion by 2027, with Asia-Pacific as a leading growth region.
The growing presence of electric vehicles is prompting insurers to develop new products that address risks such as battery damage, roadside charging incidents, and cyber threats linked to connected vehicles.
In China, India, and South Korea, insurers are rolling out policies that include battery replacement and theft protection.
Flexible insurance frameworks are also emerging to accommodate new ownership models, such as battery-swapping and vehicle leasing.
Environmental, social, and governance (ESG) considerations are influencing product design and underwriting strategies in the region.
Insurers are introducing green insurance products, offering discounts for hybrid and electric vehicles, and incorporating carbon offset options.
More than half of insurers in Asia-Pacific are now integrating ESG metrics into their business practices, according to Deloitte.
Regulators are also increasing transparency requirements to align the industry with sustainability objectives.
