The introduction of electric bikes has significantly transformed the world of transportation. With their eco-friendly design, lower operating costs and sleek aesthetics, e-bikes are becoming a new favourite among riders.
As we embrace this sustainable future, it is crucial to acknowledge that these bikes, like other two-wheelers, are also prone to risks that can be effectively mitigated through two-wheeler insurance.
However, navigating the complicated world of electric two-wheeler insurance can be confusing. To help you tackle this problem, let us discuss all you need to know about this insurance.
What is Electric Two-Wheeler Insurance and What are its Types?
Electric bike insurance, also known as e-bike insurance, is a type of insurance that offers financial protection to e-bikes against vehicle-related risks, such as damage, theft, accidents, etc.
Similar to a regular two-wheeler, an electric two-wheeler also needs to have minimum third-party insurance.
Electric two-wheeler insurance comes in various types, including:
- Standalone Own Damage E-Bike Insurance: This insurance covers losses or damages incurred to the insured’s e-bike.
Note that own-damage insurance for bike does not include third-party liabilities in its coverage and is considered ideal for those who already have third-party insurance but need additional financial support.
- Third-Party E-Bike Insurance: This insurance policy, mandatory by law, protects against death or injuries caused to a third party during an accident. Not having this insurance can lead to fines, penalties and potential legal consequences.
- Comprehensive E-Bike Insurance: This insurance plan covers own damage as well as third-party liabilities, providing extensive protection against various risks, added peace of mind and a solid financial cushion.
Why Do You Need Two-Wheeler Insurance for E-Bikes?
Compliance with Traffic Laws
The Motor Vehicles Act, 1988, mandates that every two-wheeler have third-party insurance. Failure to do so can cause unnecessary hassles.
Having e-bike insurance satisfies this legal requirement and allows electric two-wheeler owners to drive their vehicles on the road with confidence.
Financial Coverage
Electric bike insurance financially protects the insured from several unforeseen events, providing the required financial support in times of need.
The coverage of insurance depends on its type. For example- a third-party e-bike insurance policy only covers damages to a third-party property and vehicle.
On the other hand, standalone own damage e-bike insurance provides coverage against vehicle theft, accidental theft, etc.
All in all, electric two-wheeler insurance provides a robust financial safety net that shields you from unexpected mishaps.
Asset Protection
Another crucial reason that highlights the importance of electric two-wheeler insurance is asset protection. This insurance, particularly an own-damage or comprehensive insurance policy, protects your valuable vehicle against:
- Theft
- Accidental damage
- Natural disasters, such as earthquakes, riots and floods.
- Fire, etc.
Thanks to this coverage, you can keep your investment safe and minimise unnecessary financial losses associated with the above-mentioned incidents.
Key Factors Affecting Electric Bike Insurance Cost
- Make and Model: High-end and luxury e-bikes tend to have higher insurance premiums. On the other hand, older models may have lower premiums.
- E-Bike Insurance Type: Third-party or standalone own-damage insurance may come with an affordable premium due to its limited coverage. In contrast, comprehensive e-bike insurance, which offers extensive protection, usually costs slightly higher.
- Insured Declared Value: Higher the IDV, higher the e-bike insurance cost.
- Coverage: An expansive coverage may increase premiums.
- Insurer: Different insurers may charge different premiums for the same offerings. For this reason, it is a must that you do thorough research and consider reputed insurers, such as TATA AIG.
- Driving Record: Individuals with a poor driving record (with previous record of accidents or fines) usually have to pay higher premiums.
Common Inclusions and Exclusions of Electric Two-Wheeler Insurance
| Inclusions | Exclusions |
| Damages and losses incurred due to road accidents, natural disasters, accidental fire, natural/manmade disasters, vehicle theft, etc. | Damages and losses due to driving under the influence of alcohol, intentional purposes, driving without valid documents and other policy-specific factors. |
Note: Inclusions and exclusions of an e-bike insurance policy may vary across insurance companies. Therefore, it is suggested that you carefully review your electric two-wheeler insurance policy before purchasing.
How to Buy Electric Bike Insurance?
- Visit the official website of your chosen insurer.
- Navigate to the main menu and choose “Bike Insurance”.
- Enter your e-bike’s registration number and click on “Get Price”.
- Fill out the required details and select the desired policy coverage to get instant quotes.
- Review and select the suitable quote and make the payment to buy the policy.
Conclusion
Buying an e-bike is indeed a prudent decision. But protecting it with electric two-wheeler insurance is an equally important step.
By understanding the ins and outs of insurance for e-bikes, you can make informed decisions and enjoy secure and worry-free riding whenever you hit the road.
