The global discussions surrounding global warming and climate crisis are making more and more people conscious of the environment. Recent years have witnessed a steep rise in demand for eco-friendly alternatives including electric two-wheelers. An electric two-wheeler uses electricity to run instead of traditional fuels such as petrol and diesel. This makes it both eco-friendly and non-polluting.
The popularity of e-scooters has exploded in the past few years. However, since they are fairly new in the market, there are several doubts about the insurance requirements for owning and riding an e-bike. If you too were concerned about insurance requirements for an e-bike, then this article is for you. Here’s all you need to know about insurance for electric two-wheelers in India.
What is Electric Two-wheeler Insurance?
Just like typical two-wheeler insurance, electric two-wheeler insurance provides you with financial cover in case of damage or loss to a third-party person or vehicle due to an accident. Depending on the type of policy you choose, it can help you cover your losses due to accidents, natural and manmade disasters, and theft. It is always recommended to buy bike insurance to safeguard your interests and reduce your financial burden.
Why Get Electric Two-wheeler Insurance?
Insurance comes with several benefits. It not only protects you financially in face of a mishap but also helps you avoid any unpleasant encounter with authorities. In India, it is mandatory to have two-wheeler insurance to ride your bike on the road. If you are caught without one, you will have to pay a hefty fine or face imprisonment, or both depending on the situation. Here are some reasons why you must not refrain from protecting your e-bike with an appropriate insurance cover.
Electric two-wheelers are, by no means, inexpensive. They are costly because of the parts such as batteries and controllers used in them. It is only right that you take every measure to protect yourself from any financial loss due to your e-bike. Having insurance will provide you with peace of mind, and you can ride your electric two-wheeler without any worries.
● The high degree of risk
E-bikes are usually suitable for shorter commutes, which makes them susceptible to higher risk during longer commutes. If you buy a higher-end model of electric two-wheeler, it is bound to be more expensive. The cost of repair and maintenance will also increase. In absence of insurance, you will have to pay these costs out of your pocket, which can put a huge financial burden on you.
Types of Electric Two-wheeler Insurance
There are many types of two-wheeler insurance. Some of them are:
1. Third-party liability insurance
Third-party liability insurance is different from own damage insurance policy in the sense that it provides financial coverage for damage caused to a third party’s vehicle. It covers damage caused to a third person’s property because of any accident. In most cases, the insurance also covers the medical expenses of the third person. This type of policy usually covers the following:
- Financial cover for damage to the third person’s vehicle: The insurance will cover the expenses of any damage caused to another person’s property and vehicle due to an accident with your electric two-wheeler.
- Injuries of the third party: Accidents can often lead to injuries. The medical expenses for third-party injuries are covered under the insurance. This insurance also provides compensation in case of death.
What is not covered under the policy?
This type of insurance does not provide any financial cover for damage to your electric two-wheeler or injuries sustained by you. That is why people typically prefer to purchase both third-party liability and own damage policy or only the comprehensive insurance policy.
2. Standalone own damage insurance
Standalone own damage insurance provides coverage for repairs costs when you accidentally damage your electric two-wheeler. While coverage differs from policy to policy, this type of policy typically covers damages because of accidents, theft, and natural calamity.
The following situations are generally covered under standalone own damage insurance:
- Accidental damage
- Total loss
- Natural disasters
- Malicious acts
- Man-made calamities
3. Comprehensive insurance
Comprehensive insurance is the most preferred type of electric two-wheeler insurance. It combines a standalone own damage policy and third-party liability insurance policy. Therefore, the policy covers any damage and medical expenses of the third party as well as damage to your e-vehicle and medical expenses. However, remember that much like any other insurance, it does not provide any financial cover if you were driving under the influence of alcohol and drugs.
Benefits of Getting an Electric Two-wheeler Insurance
There are several benefits of getting electric two-wheeler insurance. The biggest benefit is that it protects your financial and emotional well-being. Some other reasons include:
At first look, insurance might look like an unnecessarily large expense. However, when you dig deeper, you realise that it is actually the most cost-efficient option. You get a good financial cover by paying a small amount of premium. If you choose to buy two-wheeler insurance online, you can save more.
● Financial cover
Whichever type of insurance you choose, it will provide financial cover to some extent. Paying for repairs and medical expenses can get expensive if not covered by your insurance. By getting your electric two-wheeler insured, you also insure your future.
Many insurance providers provide several add-ons for electric two-wheeler insurance to expand the scope of coverage. You can get add-ons such as No Claim Bonus protection, loss of key cover etc., by paying a small amount.
● Peace of mind
Insurance gives you peace of mind. You can rest easy knowing you are protected against any future loss to your and third person’s vehicle.
Inclusions and Exclusions
While the exact inclusions depend on the type of insurance and insurance provider you choose, most electric two-wheeler insurance covers the following:
- Damage because of an accident: Financial cover for repairs and replacements in case of damage to the vehicle because of an accident
- Loss of electric two-wheeler because of theft: The insurance typically calculates the claim after deducting depreciation and other expenses
- Third-party loss: If the property of a third person is also damaged in case of an accident, insurance will cover those expenses
- Damage to your electric two-wheeler because of a fire
- Losses to your e-bike because of any natural disaster or man-made calamities
Common exclusions under electric two-wheeler insurance include:
- If you face any losses/damage while driving under the influence of drugs or alcohol, the insurance will not cover them
- Any losses incurred while driving without the required documents such as a driver’s licence
- In case of intentional damage to the electric two-wheeler, the insurance does not provide financial cover
Electric two-wheelers are expensive and carry huge risks with them. Even if you drive responsibly, you cannot account for other people’s actions on the road and foresee unexpected situations. Therefore, to protect yourself from future financial burdens, it is advisable to purchase electric two-wheeler insurance today.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.