The Motor Vehicles act of 1988 makes it mandatory for all vehicles registered in the country to have an insurance certificate along with registration documents. It serves not just as a legal requirement, but also helps in ensuring protection for your vehicle. These advantages are not limited to four-wheelers, but also two-wheelers. Thus, having bike insurance for your two-wheeler is necessary.
The requirement to insure your two-wheeler is not limited to bikes with an internal combustion engine (ICE), but also for electric bikes or e-bikes. The government aims to make India a leading market for electric vehicles by 2030, and thus, promoting e-bikes has become important. To further promote the sale of electric two-wheelers, the government under its electric vehicle policy offers incentives under the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME)-II Scheme by way of tax breaks and subsidies for buying EVs. Please note that tax benefit is subject to change in tax laws
When selecting a bike insurance policy for your e-bike, you have the following choice of plans –
- Third-party bike insurance
Third-party bike insurance is the minimum requirement of insurance cover that you need to have. Since it is the most basic type of insurance coverage, its bike insurance price is governed by the insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI). You can visit the official website of IRDAI for further details.
A third-party policy provides coverage for legal liabilities that may arise against the policyholder in the event of an accident or collision. Thus, if you end up injuring another person or causing damage to their property, third party bike insurance will take care of it. However, a third-party plan lacks any coverage for the repair costs of your bike. *
- Comprehensive bike insurance
A comprehensive plan encapsulates the coverage of third-party policy within its scope, along with providing compensation for the repairs that are required for your bike. Thus, in the situation of an accident, when your bike also requires repairs, a comprehensive plan comes in handy. Considering the repair costs for electric bikes are high, it is a smart choice to opt for a comprehensive plan and not a limited liability cover. *
Reasons why you should not skip on a two-wheeler policy for your electric bike
- Staying on the right side of the law
For starters, a two-wheeler policy is mandatory for your electric bike. Hence, skipping one could attract hefty fines. To stay legally compliant when riding your two-wheeler, it is best to have at least the minimum insurance coverage. *
- Electric bikes are expensive
While the government is trying hard to push the sales figures for electric bikes, there aren’t enough sales. Since Indian buyers are cost-conscious, an electric bike is still expensive for many. Although they have their unique advantages of lower maintenance costs, operating costs and being environment-friendly, their steep price tag makes it an expensive affair to repair in the event of a breakdown. With an electric bike insurance plan, you can get compensation for these expensive repairs. *
- Degree of risk
Not all e-bikes have slow speeds. Some electric bikes have unusually high speeds and heavy weights. Thus, both these factors make them more prone to risk. To mitigate the increased risk, electric two wheeler insurance comes in handy. *
- Limited insurance coverage
Considering there is still some time for mass adoption of electric bikes, their insurance is possible with the same insurance cover unless the insurance company has a specific insurance policy. Considering the policies that are available at present, the ebike insurance cost can range from affordable alternatives to those that provide comprehensive cover. *
* 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.