All circuits not firing in upkeep of EVs

EV owner Ramesh Sharma faced months of delay getting his vehicle repaired after a minor battery issue, highlighting challenges in India’s electric mobility ecosystem.

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When Ramesh Sharma bought his first electric vehicle (EV) last year, he believed he was making an environmentally conscious move that would also save him money in the long run. What he didn’t expect was to be stuck in a months-long nightmare just to get his car repaired after a minor battery issue.

His experience is becoming increasingly common among India’s early EV adopters.

As the country races toward its electric mobility goals, a growing number of e-car owners are reporting delays when they need to get the vehicles repaired, confusion over the insurance cover they need and even rejection of their claims.

Unlike the well-established network supporting vehicles with internal combustion engines (ICEs), the EV ecosystem is still in its infancy. Manufacturers have been cautious in expanding service centres, resulting in a handful of centralised hubs that are often far from both dealerships and customers.

This gap leads to long waiting periods for repairs and complicated insurance processes.

“Comparing EVs with ICE vehicles isn’t appropriate,” said Gaurav Arora, head of reinsurance, underwriting & claims for property and casualty at ICICI Lombard, India’s largest EV insurer. “The EV battery is like the engine, only more complex. Repairs take longer and specialised workshops are still few and far between.”

In ICE vehicles, minor claim approvals usually happen within a matter of hours. But for EVs, the process can stretch from two weeks to three months, experts say. It’s a mix of poor customer awareness, limited repair capabilities and a cumbersome approval chain that involves original equipment manufacturers (OEMs), insurance companies and dealerships that causes this delay.

“Batteries make up nearly 40 per cent of an EV’s cost,” a dealer said, requesting anonymity. “We don’t stock them. Once an insurer approves the claim, we place an order. But that approval can take ages.” Until recently, EV batteries were only replaced, not repaired. That meant even minor issues could result in full battery replacements. On top of that, battery disposal is governed by environmental laws, adding another layer of complexity.

Lack of Awareness

Now, OEMs are beginning to repair batteries or stock “child parts,” or individual components, to reduce turnaround time.

“Some OEMs have already initiated battery repair practices, and we have been encouraging others to follow suit,” said Arora. “We also advised OEMs to look into specific battery-related issues caused due to flooding or water logging, to help minimise such claims and improve the overall customer experience.”

But even as infrastructure slowly improves, another problem remains – consumer confusion.

Most EV buyers opt only for the primary insurance policy, unaware that the crucial battery cover is an optional add-on. When claims are denied, many are shocked to find out their policies didn’t include coverage for battery faults or water damage. “Some customers buy insurance online just because it’s cheaper, not realising it doesn’t cover what they need,” said a dealer. This has made EV insurance a costly proposition. Transporting damaged e-cars to far-off service centres drives up costs significantly. In some cases, the cost of transportation alone exceeds the value of the claim, prompting insurers to reject it altogether. Insurers and manufacturers acknowledge the issues, but say they’re temporary. Most leading OEMs, off the record, admitted the pain points. They’re betting on a dramatic ramp-up in service infrastructure over the next eight to 12 months, including opening more localised service hubs and conducting technician training programmes. “We are continuously working to expand and enhance our service network and will soon introduce mobile service vans for EV servicing, bringing expert care directly to our customers’ doorstep,” said Tarun Garg, chief operating officer at Hyundai Motors India, which has more than 400 dedicated EV service workshops covering nearly every city. “Our battery protection insurance plan safeguards one of the most valuable EV components, the battery along with charging cables,” he said.

“Collaboration is key,” said Arora. “We’re actively working with OEMs and dealers, feeding back customer pain points to improve response time and reduce claim costs.”

In the meantime, insurers are also urging EV owners to be proactive. Staying compliant with insurance regulations is crucial.

According to the rules of the Insurance Regulatory and Development Authority, EVs must have third-party insurance. Skipping this can attract penalties besides claim rejections. While the rule on third-party insurance applies to all motor vehicles, some EV owners used to skip it believing that EVs don’t need it. Frequent repricing of EV policies, driven by uncertainty around repair costs, has only added to customer anxiety.

Despite the challenges, experts remain optimistic.

As India’s EV ecosystem matures, smoother coordination between automakers and insurers will be vital. The hope is that early adopters won’t be penalised for their choice to go green.