The Next Time You Buy an EV, the Maker May Sell You the Insurance Too — What to Check Before You Buy

**Quick Answer:** On 15 October 2026, IRDAI granted Ather Insurance — the EV maker's wholly-owned subsidiary — a composite corporate-agent licence to distribute and service life, general and health policies. The approval doesn't change your rights: third-party cover is mandatory by law, and you may compare or refuse any policy offered at the dealership. Picture this: you pick your electric scooter at an Ather experience centre, and the same company that built it hands you the insurance policy too. That scenario just moved closer — on 15 October 2026, IRDAI granted Ather Insurance, a wholly-owned subsidiary of EV maker Ather Energy, a licence to distribute and service insurance. Your scooter maker may soon be your insurance seller as well. Unlike the dealer pushing a policy (covered 27 September), this time the manufacturer itself is behind the insurance counter. Here is what the approval actually says, what a "corporate agent" may do, and the checks that keep you in control at the dealership.

What just happened: the approval, decoded

The facts, straight from Ather Energy's stock-exchange filing: - On 15 October 2026, IRDAI issued a Certificate of Registration to Ather Insurance Limited, a 100% wholly-owned subsidiary of Ather Energy Limited (incorporated 27 May 2026). - The registration is as a "composite corporate agent" under the IRDAI (Registration of Corporate Agents) Regulations, 2015, as amended — authorising it to distribute and service life, general and health insurance products. - Ather disclosed the approval to the NSE and BSE the same day under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements. - The licence is valid from 15 October 2026 on an ongoing basis, subject to the annual fee, unless IRDAI suspends or cancels it. Equally important is what the filing does NOT say: no revenue targets, no products, no launch timeline. The company says the move will diversify revenue streams and create recurring revenue opportunities from its existing customer base. So: licensed to sell, but nothing announced about what, when or how. Treat any "Ather will sell X insurance" claim you see online as speculation until the company says otherwise.

What a "composite corporate agent" actually means

"Corporate agent" is IRDAI's term for a company — never an individual — registered to sell and service insurance policies. "Composite" means one registration covers life, general and health lines instead of separate licences. The defining feature is the tie-up model: a corporate agent works with only a small, regulator-capped number of insurers per category — and represents the insurer, not you. Contrast that with the other two intermediaries you'll meet: - **Corporate agent:** tied to a fixed set of insurers; sells only their products; represents the insurer. - **Insurance broker:** independent; represents you, the customer; can place business with many insurers; owes its duty to the client. - **Web aggregator:** an online marketplace comparing policies across insurers, earning commission on sales. The practical takeaway: if your scooter maker sells you insurance, you're choosing from a menu, not the market — so check what the market offers before you order.

Why your scooter maker wants to sell you insurance

Ather said it plainly in its filing: recurring revenue opportunities from the existing customer base. Insurance is one of the rare products where the seller keeps earning after the sale — every renewal brings fresh commission, year after year, for as long as you stay. Analysts describing the deal called it "high-margin recurring income via policy renewal commissions." There's also a point-of-sale logic: at delivery time, you're a captive, excited audience — the easiest insurance sale in the world.

The one thing that never changes: third-party cover is mandatory

Whatever the seller's logo, one rule is non-negotiable. Section 146 of the Motor Vehicles Act, 1988 requires every vehicle on a public road — electric scooter included — to carry valid third-party insurance. No TP, no legal ride. Penalties under Section 196: ₹2,000 for a first offence, ₹4,000 for a repeat offence, with up to three months' imprisonment in either case. The mandatory cover just got longer. On 4 August 2026, the Supreme Court extended compulsory TP for new vehicles — new two-wheelers must now carry six years of cover (up from five), new cars four years (up from three) — despite IRDAI recommending against the extension. IRDAI must now issue implementing directions. So a new Ather buyer pays for six years of TP upfront. The three building blocks: - **Third-party:** mandatory; pays for injury or damage your vehicle causes to others; covers nothing on your own scooter. - **Own-damage:** optional; covers theft, fire and accident damage to your own vehicle. - **Comprehensive:** TP plus own-damage in one policy; add-ons like zero-depreciation attach to this.

Own-damage, zero-dep, NCB: the levers you actually control

Own-damage is optional — and that's where your choices, and your money, actually live. - **Zero-depreciation (zero-dep) add-on:** in a normal claim the insurer deducts depreciation on replaced parts; zero-dep waives that deduction. It raises the premium and is most valuable in a new vehicle's early years. - **No-claim bonus (NCB):** a discount on the own-damage premium at renewal for every claim-free year. It belongs to you, not the policy — it can typically transfer when you switch insurers, and one claim usually resets it. Guard it: claiming for a small scratch can cost more in lost NCB than the repair. - **Insured declared value (IDV):** the maximum payable on total loss or theft — a lower IDV cuts today's premium but caps tomorrow's payout; check it tracks the real value. - **Deductibles:** a voluntary deductible lowers the premium but raises your out-of-pocket cost at claim time. Match it to what you could afford in a bad month. None of these are decided by law — they're decided by you.

The timing twist: IRDAI is proposing to squeeze distribution payouts

On 23 September 2026, IRDAI released a consultation paper — "Recalibrating Economics of Insurance Distribution" — proposing to cap what insurers may pay distributors. These are proposals, not rules; comments are open until 25 October 2026. The motor bits that matter: - **Zero commission** for distribution entities on motor third-party insurance; 2.5% for individual agents. - Motor own-damage and personal-accident covers on new vehicles: a **5% cap** for distribution entities, 10% for agents. For context, Reuters noted new-vehicle TP would carry no commissions "compared to current rates of around 25% to 50% in the motor insurance segment" — a genuine rewiring, not a trim. If finalised, point-of-sale motor-insurance economics change materially — including for a brand-new corporate agent like Ather Insurance. Watch where the margin moves: with TP paying nothing, attention shifts to own-damage and add-ons, where commissions survive. That's where the incentives point — and knowing it makes you a sharper buyer.

Dealer bundling vs maker selling: not the same thing

On 27 September we covered IRDAI's crackdown on dealers who force buyers into a specific insurer's policy — that was the dealer's bundling muscle. This story is different: the manufacturer itself becoming a licensed distributor. It may be cleaner — one accountable brand, potentially smoother servicing — but your rights are identical: buy your policy anywhere; nobody can make the scooter conditional on their insurance. The regulatory wind is behind you too: IRDAI's consultation paper also proposes banning compulsory bundling of insurance with credit products. The direction of travel is choice, not capture.

The dealership checklist: verify before you sign

Eight checks, ten minutes: 1. **Confirm the third-party cover first:** six years for a new two-wheeler under the latest direction, the insurer's name, and the policy issued in your name. 2. **Ask for the own-damage quote broken down line by line** — IDV, base premium, each add-on separately. One bundled number hides the levers. 3. **Get one independent quote** for the same IDV and add-ons — from the insurer's own website or an aggregator — before signing at the counter. 4. **Check your no-claim bonus.** Buying a second vehicle? Ask about transferring NCB from your existing policy instead of starting from zero. 5. **Read the add-ons, especially on an EV:** zero-dep terms, and whether battery damage is covered or excluded. The battery is the expensive part. 6. **Ask who services claims** — the maker's team, the dealer, or the insurer's network — and save the claims helpline before you ride out. 7. **Never sign a blank or pre-filled proposal form.** Verify the nominee, address, engine/chassis details and IDV yourself. 8. **Take the actual policy document at delivery.** "It will come by email next week" is how paperwork goes missing.

This article is for educational purposes only and is not financial advice. Please consult a SEBI-registered investment adviser for personalized guidance. Investments are subject to market risk.