EV insurance in limbo amid battery, spare part risks

Auto insurance for conventional vehicles and EVs could be separated due to the difference in risk, said Bern, executive director of Indonesian General Insurance Association.

JAKARTA: Insurance firms have expressed support for the government’s push for electric vehicles (EVs), but due to the costly batteries and limited availability of spare parts, coverage for EVs may not be cheap compared with conventional vehicle insurance. Unless the government is willing to provide subsidies, an analyst predicted, insurers would charge higher premiums for EVs.

The coverage most likely would also exclude protection for batteries that were still under warranty by the manufacturers. Bern Dwyanto, executive director at the Indonesian General Insurance Association (AAUI), said auto insurance was one of the main contributors to general insurance growth in the country.