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The Advanced Guide to Electric Two-Wheeler Insurance

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A looming energy crisis and global warming have forced countries around the world to go greener and cleaner. The advent and gradually increasing popularity of electric vehicles is proof of that. In fact, a 2019 PWC report states that in FY19, over 7.6 lakh electric vehicles were sold, 16.4% of which were two-wheelers. And this figure will only rise.

However, purchasing an e-bike for the greater good is not enough. You need to avail a two-wheeler insurance policy as well. With the electric bike segment still in a nascent stage, its regulations are not entirely defined. For example, bikes that fall under the category of 250W with a maximum speed of 25 km/h, at present, do not require to be registered, nor do they require insurance or helmets and the like. However, talks of incorporating all motorised two-wheelers under the purview of the Motor Vehicles Act, 1988, are going on.

For the bigger electronic two-wheelers, though, insurance and general rules of the Motor Vehicles Act still apply. Therefore, whether or not insurance is mandatory for your two-wheeler, it still makes financial sense to avail of an electric vehicle insurance policy.

Importance of two-wheeler insurance

• Prevalence of road accidents: India ranks first amongst 199 countries in road accidents and accounts for almost 11% of accident-related deaths in the world. As such, two-wheeler accidents are riskier, given the lack of safety features such as seatbelts, airbags and an enclosed chassis. With such a high prevalence of accidents, it makes sense to have a TWO-WHEELER INSURANCE POLICY.

• High cost of components: Being a nascent technological segment with a relatively low market share, parts and components of electric bikes and scooters are bound to be expensive. In addition, batteries and motors and other electrical components will be relatively harder to source and more expensive than the easily available fossil-fuel counterparts. As a result, an e-bike insurance policy assumes greater significance to protect you against out-of-pocket expenses.

• Technology-related: As is the case with any new, emerging technology, there are bound to be kinks and minor glitches that can crop up now and then. Also, you need to consider the pace at which technological innovations take place. Therefore, to keep up with the times and ensure that you are financially protected against potential kinks, an insurance policy is a must.

Types of two-wheeler insurance

There are primarily two types of two-wheeler insurance policies:

• THIRD-PARTY BIKE INSURANCE:This is the most basic form of motor insurance and is mandatory. It covers damages caused by your electric vehicle to a third party or their property. It does not cover damage to your vehicle.

• COMPREHENSIVE TWO-WHEELER INSURANCE:This also covers damage to your vehicle against manmade and natural calamities. These policies are generally renewed annually. However, you can avail of a long-term insurance policy of three years to enjoy lower premium and hassle-free coverage. In addition, should a base policy deem insufficient, you can opt for add-on covers for holistic protection.

How is two-wheeler insurance for e-bikes different from regular bike insurance?

They are different primarily based on their fundamental technological differences. While regular bikes are gauged on their engine capacities, amongst other things, e-bikes have their power taken into consideration. Moreover, as electric vehicles are expensive to begin with while having lower maintenance costs and risks, the bike insurance premium is lower than regular fossil-fuel vehicles.

Key Takeaway

As the world moves towards greener solutions, the electric mobility segment is primed for exponential growth. With the help of a robust charging ecosystem and a conducive regulatory framework, owning an electric vehicle will generate savings in the long run. E-bike insurance being cost-effective is yet another incentive to consider while buying an electric two-wheeler, apart from the obvious environmental benefits.

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

This blog has been written by:

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance

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Few Other Articles:

• Start saving to get that dream electric bike home

• The next big green thing in the auto industry – Electric Vehicle (EV)

• It’s time to charge your electric scooter with two-wheeler insurance

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