EV owners in China can now be reimbursed up to $6.3 million in the event of an electric-car fire

Electric Car on Fire

New energy vehicles necessitated unique insurance requirements because of the rapid growth in their use. Notice of Exceptional Clauses for Commercial New Energy Vehicle Insurance was issued on December 13 in China.

Specifically for new-electric cars, these regulations are more adapted to their performance. Owners of insured electric vehicles seem to be concerned about fires the most frequently.

For the first time, automobiles powered by new energy sources will be eligible for supplementary insurance under the new bill.

If the car is charging or parked and not working, a fire might cause not only the loss of that vehicle but also injury and damage to one’s own or another’s property.

This fire has the potential to spread to neighboring cars or even ignite the house. In many cases, the amount of insurance does not cover the damages.

New energy-related car fires have necessitated the creation of an unique insurance policy. The highest payment for a typical car fire is $1.57 million.

However, if someone is injured or damages someone else’s property, the insurance company can pay up to $ 6.3 million for each fire, which is an increase of 2, 3, or 4 times.

The most important thing is that fraudsters do not use this as an excuse to increase their “investment” in order to receive more compensation.

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