Insurance For E-Bikes

Humans used to walk to get to places. Later they invented cycles to pedal themselves for mobility. Since then, we have seen people using mopeds, scooters, bikes, and now electric bikes. Electric bikes are the future of the two-wheeler automobile sector. They run on batteries and they are a great alternative to petrol bikes because of two reasons - the rising cost of petrol and the alarming rates of air pollution it causes.

The India e-bike market is expected to reach $2.31 million by 2027 - estimating a 12.69% CAGR increase from $1.14 million in 2021. When you know that e-bikes are the future, you should also know about insurance for e-bikes. This article explains everything you need to know about electric two-wheeler insurance.

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What Are Electric Bikes?

Unlike bikes that are fuel-driven, electric two-wheelers are battery-powered. These batteries require charging to keep them running.

Electric bikes were introduced to solve these major issues -

  • The increase in air pollution caused by fuels like petrol and diesel. It is a huge contributor to global warming.
  • Fuels like petrol are made from natural resources that are depleting every day and as a result, the cost of these keeps increasing.

What Is Insurance For E-Bikes?

Insurance for e-bikes is similar to that of regular bike insurance. It promises financial coverage against any damages or loss by theft or accidents.

Why Do You Need Insurance For E-Bikes?

Here are a few reasons why you need to invest in an insurance cover if you own an e-bike.

  • To Save Yourself From Legal Liabilities

    Every bike on road is mandated to have at least third-party insurance. An insurance policy for your e-bike will keep you out of any legal complications.

  • Financial Protection

    An insurance policy ensures that you are financially covered from losses and damages caused to your e-bike or a third party by accident or theft. It will help you deal with unforeseen expenses.

For example, Raghav has a son named Yash. He buys an e-bike for Yash as a gift for his 18th birthday. Yash excitedly takes the bike for a ride but finds himself losing control and hits on a lamppost. The headlight and front bumper get broken and damaged.

Now, if Raghav has bought insurance for the e-bike, he can claim the expenses of repair and replacement from the insurer. If not, he will have to bear the costs out of his own pocket.

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What Is Covered By An E-bike Insurance Policy?

  • Accidental Damage

    Any damages or losses caused by a road accident are covered by the policy.

  • Theft

    Your insurance policy will cover you financially if the bike is stolen.

    Example: Mehak parks her vehicle in a parking space and goes to a supermarket. She comes back to find that her e-bike has been stolen. She informs her insurer about the situation and raises a claim. The insurer agrees to provide compensation.

  • Fire

    Damages caused due to accidental fire will be covered.

  • Death Or Permanent Disability

    The insurance policy covers you, the owner-driver, in case you pass away or become permanently disabled as a result of an accident, provided that you have purchased the mandatory Personal Accident Cover for the owner-driver.

    Example: Lalit is coming back from work on his e-bike when a speeding lorry strikes him from behind. Lalit dies on the spot. In this case, Lalit's family shall receive compensation as per the limit stated in his policy.

  • Third-Party Or Property

    Any damages to a third party or their property will be covered.

    Example: Bala was on his way to work when he lost control and crashed his e-bike into a fruit shop. In this case, Bala's policy will cover the fruit shop owner's losses, as per the limit stated in the policy.

  • Man-Made Or Natural Calamities

    Damages or losses arising from floods, earthquakes, riots, vandalism, and such natural and man-made calamities shall be covered.

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What Is Not Covered By An E-Bike Insurance Policy?

  • Consequential Damages

    Consequential damages are those that do not directly result from an accident. Your insurance policy will not cover them.

    Example: Dev gets involved in an accident that severely damages his e-bike. In order to repair the vehicle, it is towed to a garage. While towing, the headlights get damaged. This damage will be considered consequential damage and therefore, will not be covered by his insurance policy.

  • Intoxication Or Drug Use

    The insurance company will not cover any damages to the e-bike if you drive it under the influence of alcohol or drugs.

    Example: Megna got into an accident while driving her e-bike under the influence of alcohol. Her insurance will not cover the damages since she was drunk when the accident occurred.

  • Wear And Tear

    Damages from regular wear and tear on the electric vehicle such as small scratches, minor dents, etc. will not be covered by the insurance policy.

  • Mechanical Or Electric Failure

    The insurance policy will not cover mechanical or electrical failures of electric vehicles.

    Example: Meenal is on a trip when her e-bike stops in the middle of the road due to faulty wiring. In this case, she will not be able to file a claim as electrical failures are excluded from the policy.

How Can You Purchase Insurance For Your Electric Two-Wheeler Online?

Insuring your e-bike online is simple and quick. Follow these steps to ensure a smooth insurance purchase -

  • Visit the website of any insurer or broker/web-aggregator of your choice.
  • Enter the details of your two-wheeler including the make and model, the registration date, and the RTO's details.
  • Ensure that you select the appropriate electric two-wheeler variant.
  • Once all of the details are mentioned, you will receive a quote for your electric two-wheeler.
  • After selecting the coverage that you want for your vehicle, you can proceed with the payment process.
  • Make sure that all the entered details are correct before making the payment.
  • As soon as payment is made, a copy of the policy will be sent to your registered email address.
  • Once you receive the policy, check whether all the details are correctly mentioned in the document.

Premium For Third-Party Insurance For Electric Bikes

Here is a table showing how premiums vary according to the e-bike’s capacity

Two-wheeler’s capacity (In KW) Premium
Less than 3 kW ₹ 457
More than 3 kW but less than 7 kW ₹ 607
More than 7 kW but less than 16 kW ₹1,161
More than 16 kW ₹2,383

Wrapping Up!

In spite of the fact that the electric bike industry is in its infancy and the regulations and rules are not yet in place, e-bikes are still relatively expensive. Furthermore, they tend to be equipped with complex technology and expensive components that can give you trouble at any time. Having insurance for your e-bike, just like any other vehicle, can be your saviour in unfortunate circumstances, giving you much-needed peace of mind.

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