Electric Bike Insurance

With the changing needs and environmental implications, electric bikes, scooters, cars, and buses are becoming the new normal because of their amazing features. As global warming affects millions worldwide, the need for sustainable and efficient energy keeps rising. In India, electric bikes and cars have started gaining popularity as they are more environmentally viable and reduce fuel costs significantly.

If you plan to buy an electric bike, you will also need to get accompanying electric bike insurance to protect your vehicle against accidental and other damages. Possession of third-party cover is a legal requirement laid out in the New Motor Vehicle Act of 2019. However, you have the options of comprehensive two-wheeler bike insurance and third-party insurance plans to choose from. You can buy the one that better suits your requirements. 

Insurance for an electric scooter is important as it helps offset financial costs that may arise in case of an accident. Listed below are the two types of insurance plans you can purchase as an e-bike owner.

1. Third-party Insurance Plan 

This is a rudimentary form of insurance for e-bikes. Plans of this type provide coverage for the third party in case they are injured or their vehicle is damaged due to an accident involving your insured two-wheeler. In such a scenario, coverage is not provided if you or your electric bike sustain injuries, loss, or damage. This level of insurance is deemed mandatory for all vehicles wishing to operate on Indian roads.

2. Comprehensive Two-wheeler Insurance 

Provided your pocket allows, you should consider availing comprehensive bike insurance. This is because, in addition to providing coverage for a third party in case of an accident, loss, or theft, you and your electric bike are also provided with coverage. This holds true if you have a personal accident and crash your vehicle.

E-bikes are the most green transportation popular product on the market. These bikes utilise rechargeable, lithium-based batteries that make them very environment-friendly. Moreover, they produce close to no pollutants and hence, are very energy efficient. 

E-bikes are cheaper as compared to diesel, petrol, or CNG operative vehicles. Additionally, insurance companies have offered multiple e-bike insurance plans that offer coverage against the damage and repair costs of electric bikes. 

When you buy e-bike insurance, you can enhance your coverage by availing of optional add-ons. Also called riders, these are designed to further enhance the scope of your coverage. Listed below are some of the popular add-ons available for most electric two-wheeler insurance plans:

1. Personal Accident Cover

With this cover, financial security is provided if the rider of the insured vehicle sustains a personal accident resulting in injury, total or partial disability, or death.

2. No-claim Bonus

This refers to the reduction in premium if the insured vehicle’s owner doesn’t make a single claim over the policy term.

3. Engine Protection Cover

This add-on provides coverage for damages sustained by the engine of the vehicle. These damages may arise from lubricating oil leaks, water ingress, or engine failure.

4. Return to Invoice Cover

Here, compensation is provided when the vehicle is stolen or beyond repair. This compensation amounts to the same value as the bike’s invoice value, i.e., the original value of the two-wheeler when the owner first bought it.

Follow these simple steps to raise a claim for electric bike insurance.

• Keep your insurance company informed about the damages and the reason for the damage sustained by your electric bike. This will help the company to prepare and initiate the procedure

• Click and save pictures of the damages on your e-bike as proof

• Keep handy the required documents and the claim form

• Allow your insurance company to initiate an inspection where the damages will be scrutinised

• Submit all the invoices and receipts that quote the price of the repairs and replacements, in case of a reimbursement claim

• Let the insurer and network garage settle the payment if you chose to claim cashless services through your insurance policy

• Offer the insurance company the assistance and information they may require from you in order to carry out the claim process

Commit these electric bike insurance dos and don’ts to your memory in order to make no mistakes when it comes to claims. 

Here are a few steps to reduce the cost of insurance for electric bikes:

• Buy insurance from a digital insurer that caters to the customers directly

• Lower additional costs by selecting the correct add-ons

• Install safety devices to avail of discounts on the premium (if available)

• Try to retain the No-claim Bonus (NCB) by not raising claims for minor damages on your e-bike

Here are a few factors that affect the premium of your electric bike insurance. 

• Insured Declared Value (IDV)

• No-claim Bonus (NCB)

• Vehicle’s capacity (kilowatts)

• Type of bike

• Add-ons or Insurance Riders

• Bike’s age

• Sum insured