(Yicai Global) Aug. 5 -- The Insurance Association of China is proposing giving new energy vehicles a different type of coverage from that of fossil fuel-powered autos that would indemnify against losses caused by fires, grid failures and charging piles.

The insurance will include damages to the body of the car, energy storage systems, motor and drive systems as well as other control systems that are caused by natural disasters and accidents including spontaneous combustion, according to a draft document issued yesterday that is open to public comment.

The insurance will not protect against losses caused by changes in the market price, natural wear and tear, battery attenuation, vehicle quality defects, damages caused by repair work and any problems arising from a power failure during charging, it said.

The association suggested there could be additional add-ons such as coverage for external grid failure and extra compensation if the battery catches fire.

NEV registrations more than tripled in the first half year on year to 1.1 million, accounting for 7.8 percent of all new vehicle registrations, according to the Ministry of Public Security. As of the end of June, electric cars made up 2.1 percent of all autos of China's streets, some six million units.

Editor: Kim Taylor