Dedicated insurance coverage will ease some consumer concerns about buying NEVs.
The lack of insurance provisions specifically for new energy vehicles (NEVs), a factor that has deterred some from purchasing such vehicles, is going to be eliminated.
After releasing a draft for public comment earlier this year in August, the Insurance Association of China today released a pilot version of a dedicated commercial insurance policy for the NEV sector.
The insurance policy mainly includes NEV damage insurance, third-party liability insurance, and occupant liability insurance.
Compared with traditional auto insurance, NEV insurance takes into account the risk of spontaneous combustion and damage to the battery, motor and electric control, in order to reduce consumers' concerns when purchasing a vehicle.
Most immortally, NEV insurance is specifically labeled as "fire and combustion included" for accidents.
These terms also provide six additional NEV-specific risks, including loss due to external grid failure, loss due to home charging pile, liability insurance for home charging pile, loss of assisted driving software, doubling of fire limits, and NEV value-added service special terms.
Although NEVs are rapidly becoming more and more accepted by consumers, there was previously no exclusive insurance coverage tailored specifically for these models. These new provisions are expected to give further support to the growth of the industry.
China's top investment bank CICC said in a research note today that it expects China's NEV fleet to reach 8.26 million units by 2021.
China's NEV sales are expected to be around 6.11 million units in 2022, with global sales nearing 12 million, China Galaxy Securities said in a research note released today.