EV Insurance Gap: 3 Risks Your Policy Won't Cover

Standard motor insurance was built for petrol cars in the 1990s. Today's connected, electric, and hybrid vehicles face cyber attacks, battery failure, and software glitches — none of which most Indian policies cover. Here's what the new generation of motor insurance looks like and what you should check right now.

Here's what happened: Indian insurers are launching next-generation motor policies that cover EV battery failure, cyber threats, and software-related breakdowns — risks completely absent from standard motor cover.. Connected and electric vehicles now face unique risks including remote hacking, OTA update failures, charging infrastructure faults, and battery degradation that traditional policies exclude by default.. Some insurers are also introducing specialised covers for niche segments — such as defence personnel who need protection during frequent relocation and long-distance travel emergencies..

What you should do: Call your motor insurer and ask three specific questions: Does my policy cover EV battery damage? Is cyber risk included? Are software or firmware failures covered? Get the answer in writing.. Compare add-on covers when renewing — look for EV-specific riders that include roadside assistance for charging failures, zero depreciation on battery packs, and cyber incident cover.. If you own a connected car or EV, request an endorsement or upgrade to a comprehensive policy that explicitly lists electronic and cyber risks in the inclusions section, not just the exclusions..

Under IRDAI rules, insurers must provide you a Key Features Document listing all exclusions clearly — demand this before buying any motor add-on so you know exactly what 'cyber cover' does and does not include.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.