Insurance Registration SBP EV Scheme 2025 – Who Pays What?
The Government of Pakistan has launched the Insurance Registration SBP EV Scheme 2025 through the State Bank of Pakistan (SBP) in collaboration with the Ministry of Industries & Production (MoI&P) and Engineering Development Board (EDB). This scheme is part of the government’s efforts to promote green mobility, energy efficiency, and affordable transport solutions.
Under the program, the government aims to finance 116,000 electric bikes and 3,170 electric rickshaws/loaders in FY 2025-26. With 0% markup, government subsidies, and affordable installment plans, the scheme is attractive for individuals, delivery riders, small business owners, and fleet operators.
However, an important part of this scheme is understanding the insurance and registration charges—who pays what, how much is subsidized, and what remains the borrower’s responsibility.
Why Insurance & Registration Matter in SBP EV Scheme:
Insurance Protection for Borrowers
Insurance ensures that borrowers are protected against risks such as accidents, theft, or damage. Without insurance, even a small accident could result in huge repair costs, discouraging people from adopting electric vehicles.
Registration for Legal Ownership
Every vehicle in Pakistan must be registered with relevant authorities to be legally allowed on the road. Registration also ensures proper documentation, roadworthiness checks, and ownership security for the buyer.
By making insurance and registration compulsory, the SBP EV Scheme 2025 ensures not only financing but also the safety, legality, and long-term usability of electric vehicles.
Read More: Government Subsidy SBP EV Scheme 2025 – Complete Loan & Installment Details
Insurance in SBP EV Scheme 2025:
Who Pays for Insurance?
- The borrower pays the insurance premium.
- The first year insurance payment must be made in advance.
- From the second year onward, the insurance cost is included in the EMI (Equated Monthly Installment).
Insurance Negotiation
- SBP has directed that insurance rates will be negotiated collectively by banks and the Ministry of Industries & Production (MoI&P) to ensure affordable pricing.
- Borrowers will benefit from bulk-negotiated rates, making insurance cheaper compared to individual purchases.
Insurance Coverage
Insurance generally covers:
- Accidental damage to the EV
- Battery replacement in case of damage (depending on policy)
- Theft protection
- Third-party liability
Registration Charges in SBP EV Scheme 2025:
Who Pays for Registration?
- The borrower bears the full registration charges.
- These charges are not subsidized by the government.
Why Borrowers Pay Registration Fees?
- Registration is a legal obligation for every vehicle owner.
- It varies across provinces and depends on the type of vehicle (bike or rickshaw/loader).
- Borrowers must ensure timely registration to avoid fines or legal complications.
Read Also: Benefits for Small Businesses & Fleet Operators SBP EV Scheme 2025
Key Responsibilities in SBP EV Scheme 2025:
| Cost Component | Who Pays? | Notes |
|---|---|---|
| Loan Principal | Borrower | Covered in EMI |
| Markup/Interest | Government | Fully subsidized, making end-user rate 0% |
| Capital Subsidy | Government | PKR 50,000 (e-bike), PKR 200,000 (rickshaw/loader) |
| Insurance Premium | Borrower | First year upfront, later in EMI |
| Registration Charges | Borrower | Full cost paid directly |
| Processing Fee | None | No charges under scheme |
| Early Settlement Fee | None | Free prepayment allowed |
Why Borrowers Must Budget for Insurance & Registration:
Even though the markup is 0% and the government provides subsidies, borrowers still need to plan for:
- Insurance premium payments (mandatory for scheme eligibility)
- Registration fees (varies by city and province)
These costs are relatively small compared to the loan amount but are essential for legal ownership and financial safety.
Benefits of Compulsory Insurance & Registration:
For Borrowers
- Peace of Mind: Financial protection against risks.
- Legal Ownership: Registered vehicle guarantees security of ownership.
- Ease of Sale: Registered vehicles have higher resale value.
For Government
- Safety Compliance: Ensures all EVs on road are insured and registered.
- Revenue Generation: Registration adds to provincial revenues.
- Better Monitoring: Helps in tracking and regulating EV adoption.
For Banks & OEMs
- Reduced Risk: Insurance minimizes chances of default in case of accidents.
- Customer Trust: Ensures buyers have confidence in the scheme.
Read Also: CM Punjab Aghosh Program Updates 2025
Common Misconceptions about Insurance & Registration in SBP EV Scheme:
❌ “Insurance is free under the scheme.”
✔ No, insurance is paid by the borrower but at negotiated lower rates.
❌ “Registration is covered by government subsidy.”
✔ No, borrowers must pay registration charges themselves.
❌ “Without insurance, I can still apply.”
✔ Insurance is mandatory for all financed EVs under this scheme.
FAQs Insurance Registration SBP EV Scheme 2025:
Q1: Who pays the insurance cost under the SBP EV Scheme 2025?
Borrowers pay the insurance, with the first year upfront and subsequent years included in EMI.
Q2: Does the government cover registration charges?
No, borrowers bear the full cost of registration.
Q3: Is insurance mandatory under this scheme?
Yes, all financed vehicles must have valid insurance coverage.
Q4: Can I choose my own insurance company?
Banks and MoI&P negotiate rates, but policies may vary by OEM and partner insurers.
Q5: How much is the insurance premium?
It depends on the vehicle type, city, and negotiated rates with insurance providers.
Q6: Are registration charges the same in every province?
No, registration fees vary by province and vehicle type.
Q7: Will insurance cover battery replacement?
Yes, if it’s included in the policy; OEM warranties may also cover battery issues.
Q8: Do I need to pay registration before delivery?
Yes, registration must be completed to legally operate the vehicle.
Q9: Can the registration fee be added to the loan amount?
No, registration is a separate cost borne by the borrower.
Q10: What happens if I delay insurance renewal?
Your EMI may include pro-rated insurance; delaying it could void coverage and increase risk.
Conclusion:
The Insurance Registration SBP EV Scheme 2025 ensures that Pakistan’s electric mobility initiative is not just about affordable loans, but also about safety, legality, and accountability.
While the government provides 0% markup loans and capital subsidies, borrowers are responsible for insurance and registration charges. This shared responsibility makes the scheme sustainable, protects consumers from risks, and guarantees legal ownership of financed vehicles.
