Bike Insurance For Electric Vehicles – A Complete Guide

The future of the automotive industry is undoubtedly all electric. With soaring fuel prices and fast-depleting natural resources, electric vehicles are certainly the future. The combustion engine was a major leap in making transportation faster without using animals. And similarly, the electric revolution is another major leap. Further, electric vehicles cost approximately the same as standard combustion engines, with a reduced recurring cost in the future. Thus, they are a suitable upgrade to your current vehicle. A report as per Tomorrow Makers predicts that the electric vehicle market is expected to grow at a CAGR of 26.8% by the end of 2030. To support this endeavour, the Government of India offers a subsidy under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME) scheme in addition to tax benefits available for vehicles that are purchased using finance alternatives. Please note that tax benefit is subject to change in tax laws. Between four-wheelers and two-wheelers, it is the latter that has gained a wider acceptance, thanks to their affordable price tag. Moreover, considering the evolving infrastructure for electric vehicles, it is bikes that are more commonly used within city limits, which include the infrastructure and where cars are generally preferred for long distances.

Is bike insurance compulsory for electric two-wheelers?

Irrespective of the engine type, be it the traditional combustion engine or electric vehicles, vehicle insurance is a compulsory requirement for all vehicles registered in the country, as per the Motor Vehicles Act. Thus, you need to mandatorily purchase electric bike insurance for battery-operated two-wheelers. Using the coverage offered by a bike insurance policy, you can ensure not just legal compliance, but also financial coverage for repairs. *

What should you know about insurance for electric two-wheelers?

Up until 2019, there was no separate insurance cover for electric vehicles in the Indian market. But in 2019, separate premium rates for third-party insurance were notified by the Insurance Regulatory and Development Authority of India (IRDAI) for electric vehicles based on the output capacity of their batteries. These premium rates are even lower by 15% if compared to private insurance policies. You can visit the official website of IRDAI for further details.  *

What are the different types of electric two-wheeler insurance policies that are available?

Similar to insurance plans for standard fuel-operated bikes, two types of electric two wheeler insurance policies can be purchased—a third-party cover and a comprehensive insurance cover. Between the two, a third-party cover is a minimum required insurance coverage, whereas a comprehensive policy is an optional upgrade. A third-party policy ensures protection for the legal liabilities that may arise due to injuries to a third person or property damage. Contrary to that, comprehensive plans provide own-damage cover and a personal accident cover in addition to the minimum required third-party coverage. Since comprehensive plans have a wider insurance scope, it impacts the bike insurance price. Using a comprehensive insurance plan, you need not worry about steep repair costs that otherwise can burn a hole in your wallet. These repairs may either be required due to collisions or accidents, or even natural disasters and man-made perils damaging your vehicle. When selecting a comprehensive plan, you can also choose the different add-ons that enhance your policy’s scope significantly. To estimate its impact on the premium, you can make use of a two wheeler insurance premium calculator. * * Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.