India is the world’s largest two-wheeler market, and in the financial year 2018-19, as many as 2.1 crore motorcycles and scooters were sold until March 2019.


There has been a slow but steady introduction of electric two-wheelers and electric bikes into the market with a 100% increase in their sales over the last year. The Indian government also plans to promote the selling of only electric two-wheelers under 150cc from April 2025 onwards, in order to curb pollution and reduce dependence on fossil fuels.


Given the government’s thrust on Faster Adoption and Manufacturing of Hybrid and Electric Vehicles under the FAME India scheme, it would be useful to have a look at motor laws and insurance applicable to e-bikes in India.

What is an Electric Bike?

A two-wheeler that is known to run on electricity is termed as an electric bike or e-bike. These bikes are charged the same as other electronic gadgets. So, much like fuel stations for regular vehicles, there are charging stations for these bikes.


Although electric bikes are quite popular in some parts of the world, it is yet to make an impact in the Indian market.

Why Do You Need Electric Bike Insurance?

The electric bike market is still budding in India. The government is yet to establish definite rules regarding the same. In fact, the registration and electric bike insurance topics are quite debatable even today.


However, when the electric bike was launched in India, the registration and insurance were not necessary for bikes falling under the category of 250 watts with a maximum speed of 25kmph.


But now that electric vehicles fall under the purview of the New Motor Vehicle Act, it is necessary to register and insure the bike. With electric bike insurance, you will be able to overcome the loss and expenses incurred in case of accidents.

What Would The Electric Bike Insurance Not Cover?

The electric bike insurance plan will not cover you against damage caused due to –


  • Normal wear and tear
  • Mechanical and electrical breakdowns
  • Illegal use of the bike
  • Driving without a valid driver’s licence
  • War
  • Theft of bike accessories

Types of Electric Bike Insurance

Generally, there are two types of covers that you can buy for your electric bike.


  1. Third Party Insurance
  2. Comprehensive Insurance

1. Third Party Insurance for eBikes

As we all know, third party insurance is a mandatory cover that every bike owner should buy. The premiums are low and affordable as the Insurance Regulatory and Development Authority of India (IRDAI) regulates the rates every year. This insurance plan will cover your electric bike against all the third-party liabilities.

2. Comprehensive Insurance for eBikes

Third party insurance only covers third-party liability. The difference between third party and comprehensive insurance is that the latter provides extensive coverage. Although the premiums are relatively high compared to third party insurance, it provides your bike with all-around protection.


In fact, a personal accident cover is provided along with the basic comprehensive coverage. You can also opt for add-on covers to enhance the coverage of the policy. With this insurance, your electric bike will be well-protected in case any expenses occur due to accidents.

How to Calculate Two Wheeler Insurance Premium

You can use the bike insurance premium calculator tool available for free online to know the cost of the policy you have chosen.


In fact, you can get a quote easily at Finserv MARKETS online. All you have to do is fill in some basic details and a customized cost will be generated specific to your needs. In case you have further queries regarding the policy, you can get in touch with the insurer and get your doubts resolved.


Also, ensure that you are reading the terms and condition of the policy, the coverage provided, exclusions, and more before you buy the policy. Consider the same parameters to compare different plans and then choose the one that fulfils your requirements.

To Conclude

Electronic bikes are yet to make an impact in the Indian market. But it does not change the fact that we need to insure our bikes as it is mandatory by law under the Motor Vehicles Act. If you are looking for two wheeler insurance, browse different plans at Finserv MARKETS.


With bike insurance at Finserv MARKETS, you can get a comprehensive plan at affordable premiums, the plans are bespoke to fulfil your insurance needs, you can add riders to enhance the coverage of the policy, the claim process is swift, and you can instantly renew the plans as well.


So, don’t wait! Insure your electric bike with electric bike insurance, right away!


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