Bangkok: Viriyah Insurance has confirmed it will not waive insurance premiums for electric vehicles (EVs) as the company foresees sustained demand through 2026, addressing concerns related to energy conservation. It has advised automakers to ensure the availability of spare parts to facilitate repairs and insurance claims.
According to Thai News Agency, Mr. Sayom Rohitsathian, Deputy Managing Director of Viriyah Insurance Public Company Limited, stated that over the past nine months, car insurance premiums amounted to 30 billion baht, with contributions from both gasoline-powered and electric vehicles. Electric vehicles currently hold a 40 percent market share, translating to approximately 70,000-80,000 vehicles. Despite the popularity of EVs, insurance premiums for new gasoline-powered vehicles continue to perform well, covering around 300,000 vehicles in total.
The hybrid vehicle market, which combines gasoline engines with electric batteries, is gaining traction as a viable alternative. These vehicles are available at a time when the country’s battery station infrastructure is still developing. Hybrid models that charge their batteries internally have seen increased sales. For electric vehicles, the total market premiums for over 100,000 vehicles in the past nine months have been notable. The EV insurance market is undergoing a stabilization phase as automakers and insurance companies are still acclimating to the industry. Initial premiums are set at moderate levels to evaluate trends in loss ratios and repair costs.
Viriyah Insurance has reiterated its commitment to EV insurance premiums and acknowledges the need for adjustments based on cost trends. Current premiums for EVs are slightly higher than those for gasoline vehicles. Some brands have set premiums to reflect costs such as labor, production, and parts, affecting the pricing strategy for other EV manufacturers. The cost for 2+ EV insurance starts at 13,000 baht for sedans, with various insured sums depending on the premium.
Mr. Sayom noted that while the repair processes for electric and petrol-powered cars are similar, battery issues are a concern for EVs. Some battery manufacturers offer repair services, while others necessitate full replacements, leading to varying insurance costs. He emphasized the importance of fuel efficiency for modern car buyers and the need for manufacturers to ensure spare parts availability to support domestic demand rather than relying on imports. The outlook for electric vehicles, particularly those from China, remains positive.