Electric Vehicle (EV) insurance demand surges 16x in just three years, Delhi-NCR leads with 18.3% market share: Report

India's demand for electric vehicle (EV) insurance has surged 16 times in just three years, with the share of insurance policies for EV cars expanding from 0.50% in FY23 to 14% in March 2025. This significant growth reflects India's shift towards sustainable mobility and consumers' recognition of the need for tailored protection. Bookings for insured two-wheeler EVs account for 7-8% of all two-wheeler insurance policies under five years, doubling the number of policies from 10,000 last year to 20,000 this year. The electric scooter dominates this segment, making up 98-99% of insured two-wheelers. Adoption is concentrated in the top five metro cities—Delhi-NCR, Bangalore, Pune, Chennai, and Mumbai-Thane—which account for 55% of all EV insurance policies purchased. Delhi-NCR leads with an 18.3% market share, followed by Bangalore (16%), Pune (7.6%), Chennai (6.7%), and Mumbai-Thane (6.4%). Tier-I cities capture 58% of all policies, while tier-II and tier-III cities account for 30% and 12%, respectively. 

EV consumers increasingly opt for comprehensive insurance packages offering added protection, including popular add-ons like Zero Depreciation, Roadside Assistance, Battery Cover, and Tyre Protection. For two-wheeler EVs, add-ons like Battery Protector (for theft or damage) and Charger Cover are specifically designed for electric vehicles, alongside more common add-ons such as Zero Depreciation and Roadside Assistance. This trend indicates a growing awareness and demand for specialized insurance solutions that address the unique needs of EV owners. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.