Will you get insurance money if your electric scooter or car catches fire? know the rules

There was sparking in an electric bike parked in the parking lot of a building located in Sector 66 (Mamura), Noida, and a massive fire broke out within no time. Two people lost their lives in this tragic accident. After a lot of effort, the fire brigade evacuated more than 100 people safely. This horrific incident has raised a question in the mind of every electric vehicle (EV) owner. The question is that if your electric scooter or vehicle catches fire, does the insurance company compensate for this loss? The direct answer is – Yes, but for this it is very important for your insurance policy to be correct.

Insurance cover is available in case of fire in EV

According to insurance expert Manoj Jain, at present no separate special guideline or separate policy has been made for electric vehicles by the government or insurance companies. As insurance claims increase in the EV sector, some new policy will definitely come in the future. In the current system, your electric vehicle is covered only under the Comprehensive Motor Insurance Policy. If your e-bike or car catches fire due to short-circuit while charging or the vehicle starts burning while moving on the road, then all this comes under the purview of this policy.

There is benefit in comprehensive insurance

If your vehicle catches fire, the amount of compensation will depend entirely on the type of your policy.

1. Third-party insurance: If this is the only basic insurance you have, then in case of a fire, you will have to pay the loss from your own pocket. This insurance only compensates for the damage caused to others (third party), not to your vehicle.
2. Comprehensive Insurance (Own Damage): This is an all-rounder cover. This includes losses caused by accidents, theft, natural calamities as well as fire. EV owners should always choose this policy to avoid financial loss.

The amount of insurance claim is decided by the IDV of the vehicle.

The amount of compensation depends on the ‘IDV’ (Insured Declared Value) of your vehicle i.e. the price decided at the time of insurance. In normal policies, money is paid after deducting depreciation according to the age of the vehicle. However, if you have add-on covers like Zero Depreciation or Return to Invoice, you can get almost the entire value of the vehicle back.

Your claim may be rejected due to these mistakes

1. Illegal Modification: If you have installed any external accessories in your EV which the insurance company was not aware of and a short circuit has occurred due to the same, then the company will immediately reject the claim.
2. Negligence: If negligence is proved like leaving the vehicle running or taking deliberate risk, there may be problem in getting insurance benefits.
3. Policy Lapse: If the policy has lapsed due to non-payment of premium on time, then no help will be provided.

Step-by-step process to get a claim after an accident

1. Protect yourself: First save your life. Go to a safe distance and take pictures or video of the incident, this is the biggest proof.
2. Information to the police: Call the police and fire brigade immediately. In cases of fire, the police report (FIR) is a mandatory document for claim.
3. Inform the company: File a claim on your insurance company’s helpline number or app without any delay.
4. Surveyor’s investigation: The company will send an expert (surveyor) who will inspect the vehicle and see what was the real reason for the fire.
5. Submit Documents: After this submit the policy copy, police report and photo/video of the car.

Experts advise to get your vehicles serviced on time during the summer season and keep the wiring checked regularly. Apart from this, read your policy documents carefully so that you do not have to go astray in difficult times.