Everything You Need To Know About Electric Scooter/Bike Insurance

Emissions from fuel-based vehicles are a major contributing factor towards pollution, especially air pollution, which also contributes towards global warming. To reduce their contribution to global warming, as well as for several other reasons, a number of people have started switching to electric vehicles. The benefits of owning an electric bike or scooter are many, the most important being the reduced dependency on fossil fuels. However, due to build quality and material used, electric bikes and scooters can be expensive. If you are looking to purchase an electric two-wheeler, buying an electric bike insurance along with it can benefit you. In this article, we will learn more about this insurance and why you should get it for your electric vehicle.

Does Electric Scooter Need Insurance?

Yes, electric scooters in India do need insurance, just like traditional petrol-powered scooters. According to the Motor Vehicles Act, having insurance for any vehicle, including electric scooters, is mandatory. There are two main types of insurance you can get for an electric scooter:

1. Third-Party Liability Insurance

This is the basic and minimum requirement under Indian law. It covers any damage caused to third-party property or injuries to others in case of an accident involving your scooter.

2. Comprehensive Insurance

This provides more extensive coverage, including damage to your own electric scooter, theft, natural calamities, and accidental damage. Getting insurance for your electric scooter not only complies with legal requirements but also protects you from potential financial loss in case of an accident or damage.

How Electric Bike Insurance Benefits You?

Due to the increasing number of electric two-wheeler sales, insurance companies started selling electric bike insurance policy. The benefits listed below can help you safeguard your vehicle effectively.

1. Financial coverage for your investment

Electric two-wheelers are expensive. The design as well as the material used, especially for the batteries is what makes them expensive. Any damage to your e-bike while on the road can set you back financially as its repair cost is significant. While damage to the external body might be a manageable expense, any damage to the interior part such as the battery, motor, or the charging port can cost a lot to repair. Having an insurance plan offers financial compensation for the repair work that might arise from the damages.*

2. Add-ons to provide all-round coverage*

Merely protecting the vehicle might not be enough as you can never anticipate the nature of damage that can be caused to your vehicle. Having extensive coverage for parts like the battery and the engine of the electric two-wheeler is also necessary. Repairing or replacing a major part such as the battery can be quite expensive and unaffordable for many. You can prepare for such instances by including add-ons in your policy to enhance the coverage of the policy. Additionally, as it is a man-made machine, any malfunction might stop your two-wheeler from functioning properly. Having roadside assistance can help you in getting assistance for any malfunction your vehicle might suffer.

3. Meets legal requirements

As per the Motor Vehicles Act, 1988, it is mandatory for vehicle owners to have at least a third-party liability policy for their vehicle. Earlier, the mandate was limited to petrol and diesel vehicles, but now it also extends to electric vehicles. The increase in the number of electric two-wheelers has made it mandatory for the owners to have at least third-party insurance. The RTO rules for electric bikes in India specify the requirement of the policy. Failure to comply with the rules can get you penalised or also attract severe punishment. Claims are subject to terms and conditions set forth under Motor insurance policy.

4. Compensates for third-party damages

There is no predicting when and how an accident might take place. Suppose you are on your e-bike/scooter. You suddenly over-accelerate and crash into the vehicle in front of you, causing visible damage to it. The owner of the third-party vehicle demands you pay for the damage caused. In such situations, paying out of pocket, especially for extensive damage might not be affordable for you. If your e-bike/scooter also gets damaged in the process, that’s an added expense for you. However, if you have electric bike insurance, the policy takes care of third-party damages. This includes damage caused to the vehicle or property. If any injuries are caused to the third-party, the medical expenses will also be covered.*^ ^Claims are subject to terms and conditions set forth under Motor insurance policy. These are just a handful benefits of the insurance plan for your electric bike/scooter. When you purchase an e-bike/scooter, remember to purchase the policy for your vehicle as well.

Electric Two-Wheeler: Should You Purchase One?

The maintenance cost of an electric two-wheeler is supposed to be lower compared to a conventional two-wheeler. The longevity of the vehicle and its equipment means you do not have to purchase another vehicle immediately. Also, to promote the sales of electric vehicles, the Indian government offers electric scooter subsidy to manufacturers, dealers, and buyers, thus providing an incentive.

Electric Bike/Scooter: Is A Licence Required?

A frequently asked question related to electric two-wheelers is: do we need license for electric bike? It depends on the type of bike you own. If the bike you own has a maximum speed of 25 kmph and generates a power of 250W, licence is not required. However, if the speed and power limit exceeds this limit, licence is required.^#

Conclusion

These benefits highlight the importance of electric bike insurance for your electric bike/scooter. If you have any doubts related to the policy and its terms and conditions, you can always consult your insurance provider or your insurance agent.   *Standard T&C apply #Visit the official website of IRDAI for further details Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.