Insurance for rental bikes

Rental bikes have changed the dynamics of commuting between places. Whether it is a short or a long ride, you don’t have to own a bike since rental bikes cater to different needs. You have the flexibility to choose between mileage-friendly and performance bikes based on your requirements. You can even rent them for a day or months.

But have you wondered how insurance for rental bikes works? Read on to learn more about rental bike insurance, along with common questions related to insurance for rental bikes.

How to get insurance for rental bikes?

As the owner of the rental bike, you have to secure it with the Commercial Two-wheeler Insurance policy, and not the private insurance plan. The plan is designed to provide coverage for rental bikes against damage to the vehicle and third-party liabilities, along with any add-ons you choose. 

Whether you are a fleet operator or renting a single bike, you can insure your bike with the Comprehensive Two-wheeler Insurance policy that comes bundled with the Third-party Insurance and Own Damage Cover.

Here are a few points that you need to keep in mind while getting insurance for rental bikes.

1. Decide on the extent of the coverage

Rental bikes need equal coverage, just like personal bikes. The vehicle requires a Comprehensive Insurance plan that covers third-party liabilities and damages to the insured vehicle. You can also choose the necessary add-ons to strengthen your coverage further.

2. Find the right plan

You can insure your rental bike with the government-mandated Third-party Liability plan. However, for wide-ranging benefits, the Comprehensive Insurance plan not only covers third-party liabilities and own damage, but it also opens up the possibility of including add-ons that provide specific coverage for losses not covered by the Comprehensive plan.

3. Buy online

One of the most significant changes in the insurance industry is the advent of insurtech companies. You have the option of buying, renewing, and raising claims online. At ACKO, all these processes do not require physical documentation or paperwork. With a digital infrastructure and no-commission model, you get to insure your rental bikes at an affordable cost.

How is insurance important for rental bikes?

Like all vehicles, rental bikes can be prone to accidental damages. Here are some of the reasons why it is important to insure your rental bike.

• Mandated by law: You need to insure the vehicle with the mandatory Third-party Liability plan. Whether the bike is rented or owned, it is compulsory to have valid bike insurance (Third-party Insurance) to ride on the Indian roads and to avoid penalties.

• Financial Protection: Commercial Comprehensive Insurance for rental bikes can protect you against financial liabilities caused due to an accident, third-party liabilities, or theft.

• Peace of mind: Rental bike insurance lets you know that you are financially protected against damages and third-party liabilities.

What rental bike insurance coverage do I need?

Plan carefully and determine the levels of coverage that meet your requirements. Here are the coverages you may need.

• Bodily injury or death liability: If a third party is involved in the accident caused by your rented bike, you need an insurance plan covering third-party liabilities. The government-mandated Third-party Insurance secures your vehicle against third-party injury or death.

• Property damage liability: If your vehicle has caused damages to someone else’s property, Third-party Insurance will compensate them for the damages.

• Own damage cover: In case of accidental damages or theft of the insured bike, the Comprehensive Insurance includes Own Damage cover for two wheeler that will compensate you for such losses.

• Include add-ons: You can include add-ons such as Zero Depreciation, Bike Engine Protect, Consumables Cover, etc., to further enhance the policy coverage.

Are rented electric bikes covered under insurance?

Currently, electric bikes or e-Bikes with a capacity of more than 250 watts and a maximum speed limit of more than 25km/h require electric bike rental insurance. It is mandatory to insure the vehicle at least with Third-party Insurance to comply with the law. But, for overall insurance coverage, it is suggested that you opt for Comprehensive Insurance. 

Points to consider while buying insurance for rental bikes

Before settling on an insurance plan for your rental electric bike, consider the below aspects to buy the right coverage.

• Check the Insured Declared Value (IDV): One of the vital aspects considered while calculating the insurance premium for rental electric bikes is the approximate market value or the IDV of the bike. Ensure that you choose the right value for the right compensation in case of a claim.

• Customise your plan: It is essential to customise the plan to suit your needs for broader coverage. Customising the plan by including add-ons will help cover losses that are not covered by the primary plan. Add-ons such as bike's Zero Depreciation, also known as Nil Depreciation cover, help you reduce your out-of-pocket expenses.

• Buy from digital insurers: Digital insurers such as ACKO offer the comfort of buying, renewing, and raising claims through the online platform. You can use either the website or the mobile app to process your request. The process is paperless and less cumbersome compared to the traditional method of form filling. With no agents and digital infrastructure, ACKO’s operating cost is lower, thereby enabling us to design affordable insurance plans for electric two-wheelers.

Frequently asked questions

Here are some commonly asked questions about insurance for electric rental bikes.

Should I insure a rental electric bike?

Yes, you need to insure a rental electric bike at least with the mandatory Third-party Liability plan. But, for wide-ranging benefits, it is suggested that you insure your bike with the Comprehensive Insurance policy.

Is insurance higher for a rental bike?

The insurance premium is based on several factors such as the IDV, location, year of manufacture, the model, etc. Hence, when compared with private bikes, the insurance cost is similar to the private bike insurance that has similar factors mentioned above.

How can I insure my rental bike with bumper-to-bumper insurance?

You can include the Zero Depreciation Cover along with the Comprehensive Insurance plan. The add-on does not consider depreciation of the parts being repaired or replaced while settling claims.

Why should I get two-wheeler insurance for a rental electric scooter?

Apart from complying with the law, electric scooters are expensive compared to petrol-powered scooters. Powerful electric scooters are equipped with costly parts and require highly skilled engineers to manufacture and service them. It is prudent to insure the scooter with comprehensive insurance and needed add-ons for broader coverage since the repair cost can be higher.

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