Industrial revolution coupled with technological advancements has taken the human species to new horizons. However, this has come at a cost—the planet’s suffocation. Global warming is increasing day by day and the level of pollution in cities is becoming a serious threat. This is not happening in some remote country on a distant continent. This is happening all over the globe, including India. Thus, electric two-wheelers/bikes in India can be a good long-term option.
Natural resources are depleting and renewable energy is looked upon as an alternative source that will keep fuelling technological advancement. As a result, the automobile industry has looked at electricity to charge four-wheelers and two-wheelers instead of using non-renewable resources. With a modification in the vehicle manufacturing process, it is natural that the services associated with it will also change. The introduction of e-bikes in India has also impacted the insurance sector. However, things are at a nascent stage. Read ahead to get an overview of insurance for electric two-wheelers in India.
- What Is an Electronic Bike/Two-wheeler?
- Insurance for Electric Two-wheeler:
- Benefits of E-bike Insurance: Why you should insure your Electric Bikes?
- Electric Vehicles (EV) Insurance Plans:
- What’s Covered and Not Covered in An Electric Two-wheeler Insurance Policy:
- How to Calculate 2 Wheeler Insurance Premium?
- How to File A Claim?
- How to Choose the Right Electric Bike Insurance Policy?
- Add-ons for Your Electric Bike Insurance:
- Does Insurance for E-bikes Cost More Than Fuel-powered Two-wheelers?
- How to Reduce Insurance Premiums For E-bikes?
- Frequently Asked Questions:
- Updates Related to Electric Two-wheelers In India:
What Is an Electronic Bike/Two-wheeler?
Two-wheelers that run on electricity are termed as e-bikes or electronic bikes/two-wheelers. Just as regular bikes need petrol as fuel, these bikes need electricity. They are charged in the same manner as any other electronic gadget is charged. Instead of fuel stations, there are charging stations for such bikes. Electronic bikes have already made inroads in some foreign countries but they are still not that popular in India.
Insurance for Electric Two-wheeler:
As electric two-wheelers are not that popular in the country, electric bike insurance/electric motorbike insurance is also uncommon. Most e-bikes available in the high-end Indian market need to be insured as per legal guidelines.
If you are confused whether your electric bike (EB) needs compulsory insurance or not, you can have a word with the vehicle dealer from where you purchased the two-wheeler. Alternatively, you can contact your preferred insurance company and ask them about it and buy two-wheeler insurance from them. You can reach out at [email protected] or give a call on 1800 266 2256 (toll-free) for further information.
Benefits of E-bike Insurance: Why you should insure your Electric Bikes?
You should insure your e-bike depending upon the bike’s specifications and meet legal requirements. Another crucial reason to insure your bike is that it is an asset. And assets can be financially protected against losses (for example, expenses made for repairs) when they are insured. You can raise a claim in case the bike gets damaged and save money on repairs.
Here are the top benefits of e-bike insurance:
- Complying with legal norms.
- Ensuring financial assistance in case of a mishap (t&c apply).
- Peace of mind in case of damage to the bike.
Electric Vehicles (EV) Insurance Plans:
Just as the insurance plans for fuel-driven vehicles, the plans for an EV are of the following two types.
1) Third-party Insurance
This cover helps you to stay insured against liabilities arising out of injury to a third party or damage to a third person’s property caused by the insured EV. It does not cover damages to the bike.
2) Own-damage Cover
Under this policy, your bike shall be covered for ‘own damages’. Also, it includes the coverage offered by the Third-party Cover.
What’s Covered and Not Covered in An Electric Two-wheeler Insurance Policy:
The best way to know what’s covered and what’s not covered in an EV’s insurance policy is to check the Policy Wordings. The coverage will depend upon the type of policy chosen. Make sure to clear all doubts before buying a policy.
How to Calculate 2 Wheeler Insurance Premium?
The easiest way to know the cost of your two-wheeler insurance policy is to use a two-wheeler insurance premium calculator. Digitally-savvy insurance companies have a dedicated section on their website that features a two-wheeler insurance premium calculator.
Some companies have their user journeys structured in a way that you get to know your bike’s insurance quote within minutes. You just need to fill in basic details and a personalized quote shall be generated for you. However, things get a bit tricky in case of e-bikes in India as they might not be listed on an insurance company’s website. In such cases, you can get in touch with the insurance company through social media, via email, or by calling them to know more about insuring an EV.
The following table is sourced from the Insurance Regulatory and Development Authority’s Website and is as per an Exposure Draft issued on 05-03-2020. Note that the rates for FY 2020-21 are proposed rates and dependent on further notifications. For currently applicable Third-party Liability Policy and Comprehensive policy rates for e-bikes, please contact the insurer.
Here’s a table showing the Third-party Liability Insurance Rates for Electric Bikes:
|Category of two-wheeler (non-passenger carrying)||Rates for FY 2019-20||Proposed Rates for FY 2020-21|
|Not exceeding 3 KW||INR 410||INR 430|
|Exceeding 3 KW but not exceeding 7 KW||INR 639||INR 654|
|Exceeding 7 KW but not exceeding 16 KW||INR 1,014||INR 1,106|
|Exceeding 16 KW||INR 1,975||INR 2,185|
Rates for Comprehensive Plans
Unlike the Third-party Plans, the rates for Comprehensive Cover are not regulated by the Insurance Regulatory and Development Authority of India (IRDAI). The insurers are free to decide their pricing strategy. Thus, different insurers may offer the policy at different rates. This makes it crucial to research, compare, and then purchase a policy.
How to File A Claim?
The overall process to file a claim remains the same across insurers; however, some might make a few tweaks to it as per their technology infrastructure and support team. There are two ways to go about the claim. One is a Cashless way where the insurer settles the repair bill with the garage, which is a part of its Network. The other way is to pay the bill first and then get it reimbursed from the insurer. Here’s a section on how to file a Cashless Claim for an e-bike.
Step 1: Initiate the claim by contacting the insurer via their website, call or email.
Step 2: Explain the situation.
Step 3: Comply with the insurance executive regarding verification.
Step 4: Comply with the insurance executive/claim inspector.
Step 5: Discuss and agree on the coverage concerning the repairs.
Step 6: Receive repaired vehicle and settle garage bill as per the terms and conditions.
How to Choose the Right Electric Bike Insurance Policy?
When you are looking for online electric bike insurance, consider the following points.
- Ensure you are covered for legal liabilities.
- Buy a policy that offers exhaustive coverage at an affordable rate.
- Consider digital-first insurers as they have a strong tech-enabled process for all insurance-related processes.
- Compare plans based on premium, coverage, and services.
- Go through the terms and conditions in detail and understand the inclusions and exclusions of the policy.
Add-ons for Your Electric Bike Insurance:
Here’s a list of popular bike insurance add-ons. All might not be available for e-bikes. Also, not all insurers might offer variety in terms of electric bike insurance add-ons.
- Roadside Assistance
- Zero Depreciation
- Invoice Protection
- No Claim Bonus Protection
- Pillion Rider Cover
Does Insurance for E-bikes Cost More Than Fuel-powered Two-wheelers?
It is difficult to make a generalised observation in this regard. As e-bikes and e-insurance are at an introductory phase in India, the Third-party rates for such bikes were lower (as of 2019) than fuel-powered bikes. When it comes to Comprehensive Plans, the insurers consider the Insured Declared Value (can be understood as approximate market value but not the resale value) of the bike as a prime factor in determining the insurance premium. Thus, if the e-bike is expensive, the insurance expenditure on it will also be on the higher side.
Also, read: IRDAI Rules For Two Wheeler Insurance Policies
How to Reduce Insurance Premiums For E-bikes?
Here are the top tips to reduce the insurance premium for your e-bike.
- Choose the cover as per your needs; do not splurge on add-ons if they do not add value.
- Consider buying a cover from an online insurer as they often sell policies at a comparatively lower rate.
- Install certified Anti-theft Devices and get a discount.
- The No Claim Bonus (NCB) component is of great help when it comes to reducing the payable premium for policy renewal; so, claim only when essential otherwise you will miss out on the NCB renewal discount.
Frequently Asked Questions:
This section features common queries related to insuring e-bikes.
Please visit www.acko.com or call 1800 266 2256 (toll-free) for further information.
Vehicles plying on public roads in India need to be insured with at least the Third-party Liability policy.
You can purchase the two-wheeler policy directly from the insurer by contacting the company and expressing your intent to buy the policy.
No, such add-ons are not stand-alone covers. They need to be purchased along with a Comprehensive Plan.
Some insurers are considering offering dedicated policies for EVs. However, the policy applicable for a fuel-powered vehicle can also work for an EV. It’s best to discuss the technicalities with your insurer.
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OLA Announces Its New Manufacturing Facility in Chennai
– December 15, 2020
OLA, the taxi-aggregator, has announced its location for the new manufacturing facility for producing electric scooters. The company has invested more than Rs. 2,400 crore to this effect and is expected to have an annual capacity of 2 million units. It also said that once the factory is built, it will offer more than 10,000 jobs, and it will focus on local manufacturing, create jobs, and build electric vehicles. The plant will manufacture EVs for both domestic and international markets. OLA had acquired Etergo AppScooter earlier this year and is expected to start producing these scooters from the new facility. Also, earlier this year, the company announced that it will hire over 2,000 employees for its electric scooter vertical as it focuses on developing smart and electric urban mobility solutions for customers across the world.
Hero Electric AE-47 Launch Delayed Due To The Current Situation
– July 3, 2020
The ongoing COVID-19 pandemic has forced various industries to rework on their strategies and the motor manufacturers are not an exceptions in this matter. This is getting reflected in the launch of new vehicles and overall sales. The Hero Electric AE-47 was expected to hit the market earlier however, now the launch of Hero’s very first Electric two-wheeler will be pushed to 2021. But when it does arrive, the electric bike will come with a host of features like cruise control, Bluetooth connectivity, SIM, GPS, USB charger, 2 ride modes, walk and reverse assist, etc. The expected price will be around Rs. 1 to 1.5 Lakh. The Hero Electric AE-47 was revealed at the 2020 Auto Expo in February. It can churn out a top speed of 85kmph and go from zero to sixty in a matter of nine seconds. The battery capacity is 3.5kWh and is made up of lithium-ions. The bike has two modes Eco and Power that can deliver 85kms and 160kms respectively.
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