A Complete Guide to Electric Scooter Insurance

Posted on: Aug 21, 2024 | 3 mins | Written by: HDFC ERGO Team

A Complete Guide to Electric Scooter Insurance

Nowadays, many people have started replacing their fuel-consuming vehicles with electric ones to reduce their contribution to global warming and for many other reasons. An e-scooter has many advantages, but the most important is reducing dependency on fossil fuels.

Electric vehicles are not cheap. The reason is their high build quality and the materials used in the manufacturing. It's always advisable to purchase electric scooter insurance when buying an electric two-wheeler to protect the expensive vehicle against any damages.

What is Electric Scooter Insurance?

Electric scooter insurance provides financial protection against expenses arising from damages to the electric vehicle and medical care needed for bodily injuries during an accident. It also covers liabilities in case the accident causes harm to third parties or destroys their properties. Electric scooter insurance can protect your investment and avoid having to bear the financial burden alone in case of an accident or theft of the two-wheeler.

Types of Insurance

There are mainly two types of insurance policies available for your e-scooter. They are:

1. Third-Party Bike Insurance

The Motor Vehicles Act 1988 mandates that two-wheeler owners have third-party bike insurance. This policy includes coverage for damages caused to someone else's property or vehicle and any injuries or death arising from an accident involving your insured e-scooter. This is the basic form of insurance, which ensures that you comply with the law.

2. Comprehensive Bike Insurance

Comprehensive bike insurance provides extensive protection. It covers third-party liabilities and damages to your vehicle caused by accidents, theft, fire, and natural and man-made disasters. This type of insurance offers all-around protection for your electric scooter, making it a preferred choice for many owners.

Benefits of E-Scooter Insurance

The following are some of the benefits of electric scooter insurance

1. Financial Coverage for Your Investment

Electric two-wheelers are expensive due to the design and materials used, especially the batteries. Damage to your e-bike can prove to be costly due to the high repair expenses. Obtaining a comprehensive bike insurance policy provides financial coverage for any repairs needed due to damages.

2. Add-ons for All-Round Coverage

Simply safeguarding the vehicle may not suffice since you cannot predict the extent of potential damage that may occur. It is also important to have comprehensive coverage for components such as the battery and engine of the electric motorcycle. You can prepare for those situations by adding extra features to your policy for better protection. Moreover, having roadside assistance can provide support for any issues your vehicle may experience while on the road, like a low battery charge.

3. Legal Compliance

Motor Vehicles Act 1988 stipulates that vehicle owners must have at least a third party bike insurance policy. This mandate extends to electric vehicles as well. Not adhering to the rules leads to paying fines. Insurance ensures you meet these legal requirements and avoid penalties.

4. Compensation for Damages to Third-Party

One cannot predict when and how an accident might take place. If you cause damage to a third-party vehicle or property, the owner may demand you pay for the damages. In such situations, having insurance can cover third-party liabilities, including medical expenses for injuries caused to the others involved in the accident.

4. No Claim Bonus (NCB)

If you don’t claim during your previous policy period, the insurer offers a discount known as the No Claim Bonus (NCB) at the time of policy renewal. By not making claims for minor issues with your electric scooter, you become eligible for this reduction on premium.

Do You Need Electric Scooter Insurance in India?

E-scooter insurance is not mandatory in India. However, like any other vehicle, insuring your electric vehicle provides you with financial protection in case of an accident or theft. Numerous insurance providers offer extra benefits like roadside help and personal accident protection, which can be beneficial. There are two ways to purchase insurance: offline and online.

Purchasing bike insurance online offers several benefits and is cost-effective, too. You have the option to compare various plans, read reviews, and choose the one that suits you best. Additionally, buying online often eliminates the need for intermediaries, reducing the overall cost.

What is Covered in an Electric Scooter Insurance Policy?

The inclusions of the policy are:

Personal Accident Cover: You get financial assistance for seeking medical care for injuries you sustained while driving an e-bike. The insurer reimburses your medical bills and the amount spent on bike repairs.

Damage Due to Natural Disasters: If a natural disaster, such as a cyclone, earthquake, or hurricane, damages your bike, you get compensation.

Man-Made Disasters: If someone harms your bike as part of a theft attempt, terrorist activity, or vandalism, you receive monetary compensation to fix the damages.

Harm to Third Parties: Comprehensive insurance provides coverage for damage caused to a third party due to your vehicle.

What’s Excluded from Electric Bike Insurance?

Certain exclusions apply to electric bike insurance.

• Normal wear and tear

• Accidents caused while driving without a licence

• Theft of your bike’s accessories

It's essential to read the policy thoroughly to understand what’s included and what’s not.

Tips to Decrease the Premium of Your Two-Wheeler Insurance

The following tips help in reducing the premium of your electric bike insurance:

1. Install Anti-Theft Devices

Insurance companies don’t mind reducing the premium if a two-wheeler is equipped with an anti-theft alarm or a similar security device. It is preferable to purchase gadgets approved by the Automotive Research Association of India (ARAI).

2. Avoid Making Claims for Minor Issues

If you don’t claim during your previous policy period, the insurer offers a No Claim Bonus (NCB) at the time of policy renewal. To benefit from this discount, avoid making claims for minor issues.

3. Renew on Time

Renewing your policy within the specified window ensures you don’t lose out on the NCB discount. Being an early bird has its benefits.

4. Buy Relevant Add-Ons

Select add-ons only if the benefit they offer is useful to you. Unnecessary riders increase the premium without providing relevant benefits.

5. Purchase Insurance Online

When you purchase bike insurance online, you avoid paying commission to an intermediary or agent, reducing your premium.

Conclusion

Having insurance for an electric scooter is crucial, considering the protection for riders, others on the road and the vehicle. It offers reassurance and financial security in case of any unforeseen events. It is essential to compare various plans and ensure you receive sufficient coverage at an affordable cost.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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