Electric motorcycles are becoming more and more common in India as more people realize how much more economical and environmentally friendly they are, as compared to autos and motorcycles.
Did you know?
The Indian e-bike market was estimated to be worth USD 1.14 million in 2021, and by 2027, it is anticipated to have grown to USD 2.31 million, with a CAGR of 12.69 percent (2022-2027).
If you now own or want to get an electric bike, it’s crucial that you also have a functional electric bike insurance policy to go along with it. The Motor Vehicle Act, 1988 of India establishes the obligation for third-party liability e-bike insurance.
It is incredibly important to insure your e-bike against a range of losses and damages that could happen to the vehicle as a result of various accidents. This insurance policy acts as a contract between you and the insurance provider. Any harm your two-wheeler causes to a third party must be paid for by this insurer. If you choose a comprehensive plan, any damage you do to yourself or your car will be covered in addition to third-party liability coverage.
Why Is Two-Wheeler Insurance Important For Your E-bike?
Your cherished new electric two-wheeler may experience anything; you can never be too careful. E-bikes are very pricey, but the electric bike business is still in its infancy and the norms and regulations haven’t been properly defined.
They frequently contain a lot of intricate technology as well as mechanical and electrical components that could malfunction at any time. Therefore, like any other vehicle, having insurance can allow you to ride worry-free in the event of an unpleasant accident.
All such losses and expenses must be paid for by the vehicle’s owner in the absence of a two wheeler insurance policy. And these costs can be very expensive. You are covered by an e-bike insurance policy from any such hazards. Additionally, under the Motor Vehicles Act of 1988, two-wheeler insurance is required.
Types of E-bike Insurance
If you wish to buy an insurance policy for your electric bike, there are mainly two types of policies you should know about:
- Third-party Insurance
According to the Motor Vehicle Act of 1988, third-party insurance for a bike is a requirement in India regardless of the type of vehicle you drive. The insurer is protected from financial obligations for the loss or damage to the third party person, their property, or their vehicle thanks to a third-party insurance policy. Sadly, the third-party liability bike insurance coverage does not cover any harm to the policyholder’s car.
- Comprehensive Cover
You will have a wider range of protection if you have comprehensive insurance coverage for your two-wheeler. It offers the policyholder defence against numerous natural and man-made catastrophes.
Insurance coverage might be your largest saviour in the event of any tragic incident that results in losses or damages to you or your car. Every year, vehicle insurance coverage is supposed to be renewed. Today, however, insurance companies provide long-term insurance plans that last up to three years. By choosing this sort of policy, you can avoid needless hassles and even qualify for discounts.
- Own Damage Cover
If you are looking to protect your e-bike from an unfortunate mishap, then your damage cover could be a useful cover that you can count on. This insurance only protects you financially against losses or damages to your e-bike. It includes protection from losses brought on by theft, fire, automobile accidents, man-made or natural disasters, and total loss. However, third-party damages are not covered by e-bike insurance.
Potential Benefits of Insuring an Electric Bike
Here is the list of the potential benefits of choosing an insurance policy for your Electric Bike.
- It is Cost-Efficient
Contrary to popular assumption, insurance is a cost-effective investment since it offers substantial financial protection for a small amount of money upfront. Additionally, by buying bike insurance online rather than in person, you can save the most money because you obtain a bigger sum assured at a lower premium cost.
- Financial Protection
Depending on the terms and conditions of the insurance, the Comprehensive Bike Insurance Plan offers financial security in such circumstances, whether it involves third-party liability or damages to e-bikes.
- Peace of Mind
Your electric motorcycle or scooter is insured, so you can relax.
This is because coverage is offered, so you no longer have to worry about the costs that might result from your vehicle (or another person’s) being damaged, lost, or stolen.
- Scope to Enhance the Coverage
One of the biggest benefits of choosing an insurance policy for your e-bike is that you have the option to purchase add-on covers that expand the policy coverage when you insure your electric two-wheeler with the Comprehensive Bike Insurance Plan or Own Damage (OD) insurance, subject to availability.
- No Claim Bonus Benefit
Insuring your e-bike is one of the best decisions you may ever make, not only in terms of financial protection but availing of a no-claim bonus. You may be able to take advantage of the advantages connected with a no-claim bonus in e-bike insurance, depending on the type of policy you choose. This bonus is given to you as a sort of incentive for driving responsibly.
Factors That May Impact The Insurance Premium For Your EV Bike
The following are the factors that may significantly impact the insurance premium of your EV bike.
- Year of Manufacture
All vehicles lose value over time, so the market value also declines. And the same can be said about e-bike. The price of a bike decreases with age. As a result, newer EV motorcycles have higher premiums while older EV bikes have premium decreases.
- Make and Model
Expensive electric bikes or scooters increase the insurer’s financial liability. As a result, the price of electric bike insurance is greater for high-end electric cars.
Deductibles come in two flavours: optional and required. Although the rate is lower if you choose a voluntary deductible, bike insurance claims will cost more.
- No Claim Bonus
The NCB is a reduction on renewal due to no claims being made during the prior policy period. If you do not submit any claims for five years in a row, you may receive a discount of up to 50%. As a result, the premium is directly correlated with the amount of NCB you have earned.
Why Does Insurance For E-bikes Cost More?
India’s market for electric bikes is still in its development. When compared to making a two-wheeled vehicle fueled by gasoline, developing and manufacturing an electric bike can be expensive. In India, EV bikes and scooters continue to be more expensive than their petrol-powered equivalents.
E-bike insurance is more expensive because it is based on the price of the bike itself. However, compared to bikes powered by gasoline, the cost of third-party insurance for electric scooters or bikes is significantly lower. The IRDAI has announced discounted premium rates for electric bikes that are 15% less expensive than two-wheelers that are powered by petrol.
How To Reduce Insurance Premiums for E-bikes?
Following are some suggestions to decrease the cost of insurance for electric bikes.
- Think about purchasing it from sole insurers, which employ a direct-to-customer business strategy and do not require middlemen.
- To save costs further, pick and choose the appropriate add-ons.
- Install certified safety equipment, such as an anti-theft device, to perhaps receive a premium discount.
- To preserve the NCB, avoid making claims for very modest damages. If you don’t file claims for five straight years, you may be eligible for a reduction of up to 50%.
What is Covered and Not Covered Under E-bike Insurance?
Here are the things included under the e-bike insurance.
- Accidents: Losses and damages that could result from a collision or accident
- Bike Theft: Covers your losses in the sad event that your electric two-wheeler is stolen!
- Fire: Your electric two-wheeler may sustain losses and damages in the event of an unintentional fire!
- Natural Disaster: Damages brought on by the many wraths of nature, such as floods, cyclones, etc. to your electric two-wheeler.
- Personal Accident: Provides coverage for your costs if you suffer a severe injury.
- Third-Party Losses: When riding your bike causes damage or injury to someone, a car, or a piece of property.
Even the best electric bike insurance plans come with certain exclusions. These are as follow:
- Warlike Situation: An insured electric bicycle cannot receive coverage for damage brought on by a warlike situation.
- Invalid Insurance: When your license is invalid or your electric bike’s insurance policy is invalid, any damage incurred while operating it will not be covered by insurance.
- Normal Dents & Scratch: Regular wear and tear caused by the use of your insured vehicle is not covered.
- Unexpected Breakdown: The costs associated with any mechanical or electrical breakdowns that your insured vehicle experiences on its own will not be reimbursed.
- Drunk Driving: Coverage will not be provided if your insured two-wheeler suffers any damage or is involved in an accident as a result of speeding or driving under the influence.
As electric bikes begin to takeover the auto industry in India, insurers need to come out with suitable plans to safeguard the vehicles against potential damages. The aforementioned content will turn out to be a suitable guide for anyone who’s looking to find out about E-bike insurance.