You might have heard several times that the future of the automotive industry is electric. While it is a thing of the future, it has slowly started to come into shape in the last few years, with developments happening in battery technology and charging infrastructure. The soaring fuel prices crossing the triple-digit figures have made it imperative to consider alternative means of fuel. Moreover, the government is offering incentives as well as tax benefits to encourage buying electric vehicles. Note that tax benefit is subject to change in tax laws.
Between an electric car and a bike, it is a bike that is favoured by many, since they come in handy for short-distance travel. While the charging infrastructure is still developing, an electric bike is a smart choice to drive around where a reliable charging infrastructure exists.
Just like conventional two-wheelers, electric bikes are also prone to accidents, natural calamities and theft. This means that any repairs that are required can burn a hole in your wallet. With a bike insurance plan, you need not worry about these expenses. If you are wondering whether you need one or not, the simple answer is yes. Continue reading to know more.
Is it Mandatory to Buy an Electric Bike Insurance Plan?
The present motor vehicle guidelines do not classify electric bikes with a battery capacity of up to 250 kW and a top speed of up to 25 kmph as motor vehicles. Thus, there is no mandatory requirement for registration and electric two wheeler insurance
. However, all electric bikes with a higher battery capacity and greater top speed are considered motor vehicles and accordingly, the motor vehicle rules apply. Thus, they are required to obtain registration as well as electric bike insurance
What is Covered by an Electric Two Wheeler Insurance Plan?
Similar to traditional fuel-operated bikes, these electric vehicles require at least a third party bike insurance
cover. The Motor Vehicles Act of 1988 makes it mandatory for every motor vehicle registered in the country to have third-party insurance coverage, as a minimum. A third-party plan covers the damages that result in a liability to the policyholder. It may be due to accidents injuring a third person or their property. However, there is no coverage for damages to the bike.
Comprehensive plans, on the other hand, include coverage for third-party liabilities along with an own-damage cover. The own-damage component protects damages to your bike. Thus, repairs to your bike due to natural calamities, accidents, man-made events, and theft, can be avoided.
The country’s regulator, the Insurance Regulatory and Development Authority of India (IRDAI) sets the bike insurance price for third-party covers, while the own-damage cover is determined by the insurance company. The latest draft notification by the IRDAI that prescribes ebike insurance cost, offers a 15% markdown in third-party insurance premiums. You can visit the official website of IRDAI for further details. *
Do You Need a Driving Licence for Riding an Electric Two-wheeler?
If you own a two-wheeler that isn’t classified as a motor vehicle as per the above motor vehicle guidelines, you need not have a driving licence to ride one. However, all-electric two-wheelers that are classified as motor vehicles (above 250 kW and with a top speed above 25 kmph) require you to have a valid driving licence. *
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.