ELECTRIC BIKE INSURANCE POLICY

India's E-Bike market is set to expand from approximately INR 3 Billion in 2019 to 17+ Billion by 2024. The first six months of the year witnessed more electric two-wheelers being sold than the entire last year. With an expected growth of over 42%, the future undoubtedly looks as promising as the present.

 

 

 

Electric bikes' evolving footprints across the country can be attributed to multiple factors. The prominent ones include rising fuel prices, pollution concerns, lower maintenance costs, government initiatives, better subsidies, and charging infrastructures for E-Vehicles.

While these essentially noise-free no-emission bikes slowly gain popularity as excellent long-term options, many lack clarity regarding their insurance necessities.

Let's simplify Electric Bike Insurance!

Electric Bike Insurance Advantages

• Satisfies the Legal Requirements.
• Financial Protection for Damages/Losses.
• Security for Unpredictable Mishaps.
• Cashless Repairs/Replacements.
• Reasonable Premium Cost.
• NCB (No-claim Bonus)Possibilities.
• Worry-free Riding Experience.
• Complete Peace of Mind.

E-Bike or Two-Wheeler Policies

• Third-Party Cover: For financial liabilities arising out of damages to properties or injuries to third parties caused by your insured Electric-Bike. The legally mandatory insurance does not take care of damages to your own two-wheeler and provides no personal accident cover for the rider.
• The Comprehensive Policy: In addition to the Third-party coverage, you get protection against own-damages, manufactured or natural disasters such as thefts, strikes, riots, and fire. It brings a personal accident cover for the owner/rider, and also allows you to purchase long-term insurance plans.

Add-ons & Exclusions

• Common Add-ons: All insurance companies may not offer many add-ons as some could be considered not applicable for E-Bikes. However, you are likely to benefit from Zero Depreciation, Engine/Gearbox Protection, Pillion Rider, Road Assistance, and Return to Invoice add-ons.
• Major Exclusions: Advantages for add-ons not purchased, regular wear/tear, natural mechanical/electrical breakdowns, consequential losses/damages, instances of contributory negligence, driving without a valid driving license or under the influence of alcohol/banned substances, and war-like situations.

The Premium Calculation

• Premiums for E-Bike policies depend on various factors ranging from the engine capacity, location, age of the two-wheeler, chosen add-ons, and the type of insurance cover.
• Electric Bikes’ third-party coverage charges are decided by the regulatory authority IRDA. They may vary from as low as Rs 410-888 (1 and 5-year policies) for Bikes not exceeding the 3 KW capacity, to Rs 1,975-11,079 for those above the 16 KW mark.
• The comprehensive insurance costs rely solely on insurance providers and their pricing strategies.

FAQs - Frequently Asked Questions

Q1. Do I need to buy insurance for my E-Bike?

Well, technically speaking, all two-wheelers plying on public roads must carry at least a third-party policy. That being said, electric two-wheeler insurance arrangements, especially for the low-powered ones, are at an initial stage with no definitive guidelines.

Many E-Bikes/Scooters with less than 250 W power and up to 25 K/Hr speed limits are not even categorised as motor vehicles and are exempt from insurance. However, the same does not hold for high-powered E-Bikes, and they need insurance. Therefore, if unsure, you must check with the E-Vehicle dealer or reach out to your preferred insurer.

Q2. Is there a compulsory minimum duration for which I have to take electric two-wheeler insurance?

Yes, that's 5 years of third-party coverage; for your new E-Bike/Scooter.

Q3. What's the limit for the property damages covered under a third-party E-Bike insurance policy?

Up to INR 7.5 Lakhs.

Q4. Will the insurance take care of my E-Scooter or Bike's battery?

Yes! The battery is a critical component of any electric two-wheeler. E-Bike comprehensive insurance plans are specifically designed to ensure robust coverage for the battery.

Q5. Does one need to pay a higher premium for insuring an electric two-wheeler than a petrol bike?

It's not necessarily true, and as most E-Bike insurance policies are in their introductory phrases, one can not make a generalistic observation.

A KPMG/CII report points out a 25-35% penetration of E-Bikes/Scooters in India by 2030. EV makers and electric two-wheeler insurance companies are fairly bullish about the advancement of E-Bikes in the country.

As customer-reluctance transforms into acceptability, it's a wise approach to pay attention to electric two-wheelers' benefits and their insurance conveniences.

Quickinsure remains a premier two-wheeler insurance broker and comparison portal enabling you to study quotes from all reputed insurance providers, identify, and choose the appropriate cover for your E-Bike.

Disclaimer: The above information/statistics are indicative and subject to change without prior notice. One must refer to the IRDA website for the most up-to-date E-Vehicle insurance developments and carefully read all the T&Cs from insurance providers before finalising a policy.