GA Insurance to cover batteries in electric vehicle policies
Group Chief Executive Officer of GA Insurance Limited, Vijay Srivastava (left), Chief Executive Officer and Principal Officer of GA Insurance Limited Sandip Bhadury (second right), Senior Manager Consumer Education at Insurance Regulatory Authority, Teresa Mburu (right) and other directors during the unveiling of GA Eco-drive Electric vehicle insurance cover on September 22, 2023 at Radisson Blu Hotel in Upper Hill, Nairobi. PHOTO | BILLY OGADA | NMG
GA Insurance has launched an electric vehicles (EVs) cover that will extend to batteries, charging cables and private charging stations, marking the first innovative policy for risks EVs face.
Dubbed GA Eco drive, the cover is targeting cars, vans, buses, motorcycles, bicycles, scooters and tuk tuks that are either classified as battery EVs or hybrid EVs.
The cover is an improvement from the traditional motor insurance policies that have been excluding key features such as batteries that make up between 30 percent and 57 percent of EVs’ value.
“The present motor insurance policies in the market were drafted many years back [for] internal combustion engines and cannot fit the unique risks associated with using EVs. The market for EVs is growing and it is quite an exciting space to be in as insurers,” said Sandip Bhadury, chief executive at GA Insurance.
The cover will also extend to injury and damage caused by charging cables, out-of-charge recovery benefit (for those who unexpectedly run out of power) and even in-car entertainment units.
The National Transport and Safety Authority data to February showed Kenya had an estimated 1,350 EVs, with motorcycles taking up 844. Three-wheelers stood at 153, and motor vehicles 186. The remaining 150 were classified as "other."
“The comprehensive cover is a game-changer in the market. It is also an actualization of the principles of sustainable insurance that the authority is really trying to deliberately ensure the industry adopts,” said Teresa Mburu, head of special services at the Insurance Regulatory Authority.
GA’s venture into this specialised cover comes on the back of growing interest in electric mobility, with different entities trying out different models of ownership and applicability.
