ACKO General Insurance,Zurich Kotak General Insurance and Liberty General Insurance have already announced their special EV covers on Tuesday for Tesla cars.
Mumbai: As Elon Musk’s Tesla has set up its first show room in Mumbai for selling its electronic vehicles(EV) in the country, from day one, many Indian general insurers have rushed to announce tailor made covers for these hi-tech expensive automobiles.
Tesla’s Model Y rear-wheel drive is priced at about Rs 6 million ($70,000), while its Model Y long-range rear-wheel drive costs 6.8 million rupees, according to the website.
With deliveries estimated to start from the third quarter, the U.S. automaker is targeting a niche electric vehicle segment in India that accounts for just 4% of overall sales in the world’s third-largest car market.
“We are here to create the ecosystem, to invest in the necessary infrastructure including the charging infrastructure,” Isabel Fan, a regional director at Tesla, said at the launch event.
The company’s Full Self-Driving capability is on offer at an additional cost of Rs 6 lakh , but the website said that “active driver supervision” will be required, and the current features do not make the vehicle autonomous.
ACKO General Insurance, Zurich Kotak General Insurance and Liberty General Insurance have already announced their special EV covers on Tuesday for Tesla cars.
Other large private sector general insurers like ICICI Lombard and Bajaj Allianz may also join the race soon, said sources.
However, it is is yet to be known how much premium these insurers are charging for insuring Tesla EV models.
Bengaluru based ACKO General Insurance was first one to say that it has been selected as Tesla’s preferred insurer for the country.
This strategic collaboration means that Tesla owners can expect a fully integrated journey—quote to cover to claim—entirely digital, beautifully minimal, and calibrated for high-performance machines and the people who drive them, said Acko General Insurance.
“Tesla didn’t just build a car; they rebuilt the idea of what a car is. At ACKO, we asked ourselves: can we do the same for insurance? stated Animesh Das, MD & CEO , ACKO General Insurance.
Zurich Kotak General Insurance has also announced the launch of EV Protect, a comprehensive add-on cover within its car insurance product, Car Secure, for Indian electric vehicles (EVs), which covers Tesla among other EVs.
Apart from proving mandatory third-party protection (as per the Motor Vehicles Act, 1988), and comprehensive coverage can also be availed for EV’s Battery Management System (BMS), Motor, and Charger from unexpected issues like power surges, short circuit, or water damage, charging equipment damage caused due to theft or rodent attack.
There is also a personal accident cover, ensuring the policyholder gets financial security in case the vehicle gets involved in an accident, said Zurich Kotak General Insurance .
Alok Agarwal, MD and CEO, Zurich Kotak General Insurance, said, “We are witnessing a shift in the customer preferences towards more sustainable transport options like electric mobility, which is reshaping the automobile market dynamics.”
Liberty General Insurance Ltd. (LGI) has also claimed it is now one of the preferred insurance providers for Tesla in India.
Liberty General Insurance has developed a suite of finely tuned protection plans that complement Tesla’s engineering and performance excellence while anticipating the distinct needs of EV users, said LGI.
Some of the features of LGI’s EV covers are-
EV Secure – A comprehensive cover for essential charging infrastructure such as cables, wall-mounted units, and adaptors,
Battery Secure – This add-on cover is designed to safeguard this core asset with specialized coverage that supports repair and replacement, ensuring long-term battery performance and peace of mind throughout customer’s ownership journey,
Liberty Complete Assistance – This enhanced service package provides sophisticated roadside support for EVs. From on-the-spot charging and flatbed towing to hydra services, temporary accommodation, and continued travel arrangements—owners can count on uninterrupted convenience.
For Tesla’s customers, LGI has curated a suite of premium, customizable add-on options that further enhance the protection experience. These include Full Depreciation Shield, Gap Value Protection, coverage for consumables and tires, key replacement cover, personal belongings protection, EMI support, and passenger assistance benefits—seamlessly complementing the brand’s superior ownership journey.
With India targeting 30% EV penetration by 2030, there is a clear need to move beyond traditional insurance models and develop specialized products that cater to the unique opportunities and challenges of this rapidly changing market, said Ajay Prabhu, Managing Director – Affinity, Lockton India.
Despite these efforts, the battery which makes up about 60% of an EV’s total cost often doesn’t get the focused attention it deserves. This makes it all the more important to highlight the value of dedicated battery insurance for EVs, he said.
With the total number of EVs on the road crossing 65 lakh as of May 2025, India is witnessing an EV revolution.
In 2024 alone, India saw 20 lakh EVs sold. With rapid acceptance across two-wheelers, three-wheelers, and public transportation, the framework is set.
Although India’s road infrastructure has improved, traffic discipline – like lane driving – is still rudimentary, EV chargers are far and few and stray animals, including cattle, and potholes on the road are a big hurdle, even in cities.