e-Bike/Electric Bike Insurance: A Complete Guide

Electric Bike Insurance - BimaBandhu
Whether you’re a new electric bike owner or a seasoned rider, this guide is your key to navigating the world of electric bike insurance in India.

What’s the first thing that comes to your mind when you think of the bustling streets of India? For many, it is the aroma of street food mingling with the acceptable interference of honking horns. However, a silent revolution is quietly taking place to become a part of this impression – the rise of electric bikes. 

With increasing concerns about pollution and the need for eco-friendly transportation options, electric bikes have emerged as a popular choice for commuters across the country. These sleek and efficient two-wheelers not only offer an affordable and eco-conscious way to navigate the urban jungle but also provide a worry-free riding experience. As the popularity of electric bikes surges, it’s essential to consider an often-overlooked aspect of ownership: e-bike insurance. 

Just like their traditional counterparts, electric bike insurance policies can help navigate the complex landscape of Indian streets and road networks. In this comprehensive guide, we’ll shed light on the intricacies of electric bike insurance in India, tailored to the needs of the masses. Before we delve into the intricacies of this type of bike insurance, let’s take a moment to appreciate the meteoric rise of electric bikes in the Indian market. 

In recent years, India has witnessed a remarkable surge in the adoption of electric vehicles (EVs), with electric bikes leading the charge. According to reliable data, the India electric two-wheeler sales in India have experienced 59.51% year-on-year growth, signaling a monumental shift in the nation’s transportation landscape.

As cities grapple with pollution and congestion, electric bikes have emerged as a clean and convenient alternative to conventional petrol-driven scooters and motorcycles. Moreover, government incentives and initiatives aimed at promoting sustainable mobility have further fueled the demand for electric bikes. The ‘Make in India’ campaign and subsidies on EV purchases have made electric bikes not only eco-friendly but also economically enticing for a wide range of consumers.

The Imperative Need for Electric Bike Insurance

Amid the electric bike boom in the Indian automobile market, it’s imperative to recognize the importance of insurance. Electric bikes, like any other mode of transportation, are not immune to accidents, theft, or unforeseen incidents. In fact, electric bikes can be particularly vulnerable due to their relatively silent operation, which might catch pedestrians and other road users off guard.

Here’s a startling fact: the number of road accidents in India has been steadily rising, with the country accounting for one of the highest accident rates globally. The need for financial protection against these risks cannot be overstated. Whether you’re a daily commuter or an occasional rider, having the right e-bike insurance coverage can provide peace of mind and financial security in the event of an unfortunate incident.

Now, let’s take you through the other aspects of this guide.

What is Electric Bike Insurance?

Electric bike insurance, often referred to as e-bike insurance, is yet another type of insurance plan designed to protect electric bike owners from various financial risks associated with owning and riding e-bikes in India. Just like conventional bike insurance, e-bike insurance is also essential to safeguard your investment and ensure financial security in case of unforeseen events.

This type of insurance offers coverage in several key areas, including:

  • Third-party liability coverage

One of the primary components of electric bike insurance is third-party liability coverage. This protects you against legal and financial liabilities arising from accidents that cause injury or property damage to third parties, such as pedestrians, cyclists, or other motorists. In India, it’s mandatory for all electric bike owners to have at least this basic coverage.

  • Comprehensive coverage

Beyond third-party liability coverage, you have the option to enhance insurance protection with comprehensive coverage. This type of policy extends coverage to damage or loss of your electric bike due to accidents, theft, vandalism, fire, natural disasters, and more. It also typically covers personal injury expenses for you and your passengers.

  • Personal accident coverage

Some insurance policies offer personal accident coverage that provides financial compensation in case you or your pillion rider sustains injuries while riding the electric bike. This coverage can help cover medical expenses and provide a financial cushion during recovery.

It’s important to note that while third-party liability coverage is mandatory, comprehensive coverage is optional. However, investing in comprehensive coverage can provide comprehensive peace of mind, especially in a country as diverse and unpredictable as India, where road conditions, traffic, and security risks vary significantly.

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What are the Benefits of Electric Bike Insurance?

Electric bike insurance provides a range of benefits that are essential for protecting both you and your valuable electric bicycle. These include:

  • Legal compliance

It ensures compliance with Indian law, as third-party liability coverage is mandatory for all electric bike owners. Failing to have this coverage can lead to legal repercussions and penalties.

  • Financial protection

Electric bike insurance (comprehensive) offers financial protection in the event of accidents, theft, or damage to your e-bike. This coverage can save you from significant out-of-pocket expenses.

  • Personal injury coverage

Some policies include personal accident coverage, which can help cover medical expenses for you and your passengers in the event of an accident.

  • No Claim Bonus (NCB)

Safe riding and claim-free years can lead to NCB benefits, which result in reduced premiums in subsequent years to make insurance more cost-effective.

  • Peace of mind

Knowing that you’re financially protected allows you to enjoy your electric bike without constant worry about potential accidents or theft.

  • Customizable coverage

You also have the flexibility to tailor your insurance coverage to your specific needs, whether you’re a daily commuter, a leisure rider, or an enthusiast who has invested in high-end electric bike accessories.

  • Financial stability

e-bike insurance ensures that unexpected expenses related to accidents or theft don’t disrupt your financial stability, allowing you to recover more swiftly.

What is Covered Under an Electric Bike Insurance Policy?

Here’s a breakdown of common inclusions of an e-bike insurance policy:

  • Third-party liability coverage as required under the Motor Vehicle Act, 1988 to cover injuries, death, or property damage to third parties in accidents where you are at fault
  • Comprehensive coverage for protection against a broader range of risks, including damage to your e-bike in the event of a collision, theft, acts of vandalism, natural disasters such as floods, earthquakes, etc.
  • Accessories coverage for custom accessories and modifications you’ve added to your electric bike
  • Legal assistance to offer legal support in disputes or legal issues arising from accidents
  • Hassle-free claim process to make it easier for you to get the compensation you deserve in case of an incident

What is Not Covered Under an Electric Bike Insurance Policy?

Here are some common scenarios that are typically not covered under an e-bike insurance policy:

  • If you’re riding your electric bike without a valid two-wheeler license, any claims made during such instances may be denied.
  • Incidents occurring while using your electric bike for illegal purposes, such as criminal activities or participating in unauthorized races, are usually not covered.
  • General wear and tear, deterioration, or aging of your e-bike are generally excluded from electric bike insurance coverage. 
  • Insurance policies typically exclude coverage for mechanical failures or breakdowns of your electric bike that are not related to an accident.
  • Accidents or incidents that occur when you’re under the influence of alcohol or drugs may result in denied claims.
  • Any modifications or accessories that are not approved or mentioned in your policy may not be covered.
  • Riding without essential protective gear like helmets, which are legally mandated in many places, could lead to claim denials.
  • Damage resulting from the misuse of your e-bike, such as overloading it beyond its capacity, may not be covered.
  • Routine maintenance costs, such as servicing, oil changes, and tire replacements, are excluded from electric bike insurance coverage.
  • Failing to adhere to the terms and conditions outlined in your policy, such as reporting an incident promptly, may result in claim denials.
  • Damage or losses resulting from acts of war, terrorism, civil unrest, or similar events are typically excluded from coverage.

Disclaimer: Both the inclusions and exclusions of electric bike insurance may differ from one policy to another. It is advisable to understand both these aspects carefully to make informed decisions, avoid potential claim denials, and take precautions to ensure you are protected in various riding situations. 

IRDAI-Approved Rates of Third-Party Electric Bike Insurance Premium

In India, the Insurance Regulatory and Development Authority of India (IRDAI) plays a pivotal role in regulating and standardizing insurance policies, including those for electric bikes. One of the key aspects governed by IRDAI is the determination of third-party insurance premiums for electric bikes. Here’s an overview of the IRDAI-approved rates for third-party electric bike insurance premiums:

Battery Power of the Bike Third-Party electric bike Insurance premium in India
Below 3KW Rs. 457
Between 3KW to 7KW Rs. 607
Between 7KW to 16KW Rs. 1,161
Above 16KW Rs. 2,383

(Source)

What are the Add-Ons for Electric Bike Insurance?

Electric bike insurance policies often come with the flexibility to enhance coverage with add-ons that allow you to tailor the benefits to your specific needs. These add-ons, also known as riders or endorsements, provide additional protection beyond the standard policy. Here are some common add-ons you can consider for e-bike insurance:

  • Zero depreciation cover

This add-on ensures that you receive the full value of your electric bike without factoring in depreciation in case of damage or loss. Without this add-on, standard policies often deduct depreciation from the claim amount.

  • Return to Invoice (RTI) cover

RTI cover bridges the gap between the insured value and the original invoice price of your electric bike. In the event of theft or total loss, you receive the invoice amount, which can help you replace your bike with a similar model.

  • Consumables cover

It covers the cost of consumable items like engine oil, brake fluid, and coolant, which are often excluded from standard insurance policies.

  • Roadside assistance cover

Roadside assistance services, such as towing, battery jump-start, and flat tire assistance, can also be included as an add-on. This ensures help is just a phone call away in case of breakdowns or mechanical issues.

  • NCB Protection cover

This add-on safeguards your accumulated NCB even if you make a claim, thus preventing it from resetting to zero in the event of an accident.

Before you select any add-on for your standard policy, keep in mind that each add-on comes at an additional price above the base policy premium. In other words, the selection of add-ons will increase the overall electric bike insurance cost.

How to Calculate Electric Bike Insurance Premium?

Calculating the premium for electric bike insurance becomes easier when you use an online bike insurance premium calculator. Here are the generic steps involved:

Step 1: Visit an insurer’s website or that of an insurance aggregator

Start by visiting the official website of the chosen insurance provider/aggregator. Once on the website, look for the ‘E-Bike Insurance Premium Calculator’ or ‘Get a Quote’ section. This is typically prominently displayed on the homepage or within the Insurance or motor insurance section of these websites.

Step 2: Enter bike details

Begin the premium calculation process by entering the relevant details about your electric bike. You will typically be asked for information such as its make and model, year of manufacture, registration location (city or area), type of insurance (third-party liability or comprehensive) etc.

Step 3: Provide additional bike information

Depending on the insurer and the calculator, you may need to provide additional information about your electric bike, such as its motor power and any specific details about custom accessories or modifications.

Step 4: Add personal details

You may also be required to enter personal details, including your name, contact information, and your previous insurance policy details (if applicable).

Step 5: Choose add-ons (optional)

If you wish to enhance your coverage with add-ons like zero depreciation cover, personal accident cover, or others, the calculator will typically provide options to include these in your calculation. Select the add-ons you want to include in your policy.

Step 6: Calculate premium

After inputting all the necessary information, the online calculator will process the data and provide you with a premium estimate for electric bike insurance costs.

Step 7: Review and compare

The calculator will display the calculated premium based on the information you provided. Review the details and ensure they are accurate. This is also an excellent opportunity to compare the premiums for different coverage options, add-ons, or deductible levels if the calculator allows for such comparisons.

Step 8: Save or retrieve the quote

Some calculators may offer the option to save the generated quote for future reference. If available, save the quote or make a note of the premium amount for reference when you’re ready to purchase the insurance policy.

Step 9: Contact the insurance provider/aggregator

If you are satisfied with the premium quote and coverage options, you can proceed to purchase the insurance policy. Contact the insurer/aggregator through their website, customer service hotline, or visit their nearest branch to complete the application and payment process.

Remember to review the terms and conditions of the policy and ensure that it meets your specific needs before finalizing your insurance purchase.

Factors Affecting Electric Bike Insurance Cost

Several factors influence electric bike insurance prices in India. Understanding these factors can help you anticipate the premium you might pay and make informed decisions when selecting your insurance coverage. Let’s find out more.

Factor Explanation
Motor Power of the Bike Bike having a high power motor often results in higher premiums.
Type of Insurance Choose between mandatory third-party liability or comprehensive coverage, with the latter being costlier
Geographical Zone Different regions have varying premium rates, with higher-traffic zones often having higher premiums
Age of the Bike Older bikes may have lower premiums but offer limited coverage for damage or loss
Make and Model of the Bike Certain bike models pose higher risks, leading to higher premiums
Insured Declared Value (IDV) The IDV is the bike’s market value and affects premiums; higher IDV leads to higher premiums
Previous Claims History  A history of claims may result in higher premiums, while NCB can reduce premiums.
Add-Ons and Riders Including add-ons like zero depreciation, personal accident cover, or engine protection adds to the premium cost.
Frequency of Use Frequent use for commuting or long rides may result in higher premiums due to increased exposure to accident risks.

How to Buy Electric Bike Insurance in India?

You can buy e-bike insurance through both online and offline channels as per your preference and convenience. Let’s go through the steps involved in both cases.

Steps to buy electric bike insurance online 

Buying electric bike insurance online is a convenient and time-efficient option. Most insurance providers and insurance aggregators in India offer user-friendly websites and mobile apps for online policy purchases. Here are the generic steps involved:

  1. Start by researching different insurance providers and their policies. Use online resources, insurance comparison websites, and customer reviews to assess which insurers offer the coverage you need at competitive rates.
  2. Go to the official website of the insurance provider/aggregator you’ve chosen. Ensure that you are on the official website to protect your personal information.
  3. If available, use the online premium calculator on the insurer’s website to estimate the premium cost based on your bike’s details, coverage preferences, and add-ons. 
  4. Complete the online application form, providing accurate and up-to-date information about yourself and your electric bike. 
  5. Select any optional add-ons or riders that you want to include in your policy.
  6. Carefully read and understand the terms and conditions of the policy, including coverage limits, deductibles, and exclusions. Make sure the policy meets your specific needs.
  7. Pay the premium online. Most insurance providers offer various payment options, including debit/credit cards, net banking, and digital wallets.
  8. After successful payment processing, you’ll receive the policy document via email or in a downloadable format from the insurer’s website. Make sure to save and print a copy for your records.

Steps to buy electric bike insurance offline 

If you prefer a more traditional approach or have limited internet access, you can buy electric bike insurance offline through insurance agents or branches of insurance companies. Here are the steps involved:

  1. Find an authorized e-bike insurance agent or visit a local branch or office of the insurance company you’re interested in. You can find this information through directories, websites, or by asking for referrals.
  2. If you choose to work with an insurance agent, they will guide you through the policy options, explain the terms, and assist you in filling out the application.
  3. Complete the paper application form provided by the agent or the insurance office. Ensure that you provide accurate information about yourself and your electric bike.
  4. Discuss your coverage preferences and add-ons with the agent or insurance representative, if applicable.
  5. Carefully review the policy terms and conditions in the printed policy document provided by the agent or insurance office. Clarify any doubts you may have.
  6. Pay the premium in person through the accepted payment methods at the insurance office.
  7. Once the payment is processed, you’ll receive a printed copy of the policy document. Ensure that you keep it in a safe place for reference.

How to Renew Your e-Bike Insurance Plan?

Electric bike insurance renewal is crucial to ensure continued coverage and legal compliance. Every insurance provider in India offers several options for policy renewal, including online and offline methods. 

Steps to renew e-bike insurance coverage online 

  1. Go to the official website of your insurance provider/aggregator. If you have an existing account with the insurance provider, log in using your username and password. If you don’t have an account, you may need to create one.
  2. Once logged in, access your policy details in your user account. You should find an option for electric bike insurance renewal.
  3. Review your policy details to ensure they are accurate and up to date. Update any information that may have changed, such as your contact details or vehicle information.
  4. Select the renewal options that suit your needs. You can typically choose the coverage type, add-ons, and policy duration.
  5. Use the online premium calculator to get an estimate of the renewal premium based on your chosen options and the current market value of your electric bike.
  6. Pay the renewal premium online using debit/credit cards, net banking, UPI etc.
  7. After successful payment for e-bike insurance renewal, you will receive the renewed policy document via email or as a downloadable file from the insurer’s website. 

Steps to renew e-bike insurance coverage offline 

You can also opt for offline electric bike insurance renewal through insurance agents or branches of insurance companies by following the steps given below:

  1. Find an authorized insurance agent or visit a local branch or office of the insurer where you purchased your policy.
  2. You can choose to discuss the renewal options and terms with an insurance agent who can guide you through the process.
  3. Complete the paper renewal application form provided by the agent or the insurance office. Ensure that you provide accurate information about yourself and your electric bike.
  4. Carefully review the policy renewal terms and conditions, including coverage and premium, provided by the agent or insurance representative.
  5. Pay the renewal premium in person via accepted payment modes.
  6. Once the payment is processed, you will receive a printed copy of the renewed policy document. Keep it safe for future reference.

Regardless of whether you renew your electric bike insurance online or offline, it’s essential to ensure that your coverage remains up to date. Prompt renewal helps you avoid coverage lapses and ensures continuous protection for your e-bike.

How to File a Claim Under Electric Bike Insurance?

Here are the steps you can follow to file a claim under your electric bike insurance plan in India:

Step 1: Contact your insurer 

Notify your e-bike insurance provider as soon as possible after the incident occurs. You can contact them through their customer service hotline or use the dedicated claims contact information provided in your policy documents. Describe the incident, its date, time, and location accurately in your statements.

Step 2: Gather necessary documents

Collect all the necessary documents required for the claim process, including a copy of your electric bike insurance policy, duly filled claim form, a copy of your driver’s license, FIR (First Information Report) in case of theft or criminal activities, repair estimates or bills, etc. 

Step 3: Report to the police 

In case of theft, vandalism, or a major accident,  report the incident to the local police and obtain an FIR. This FIR serves as official documentation of the incident.

Step 4: Follow the claims process

Your insurance provider will guide you through the claims process, which may include inspection of the damaged electric bike by a surveyor, verification of the documents, and assessment of the damage or loss to determine the claim amount.

Step 5: Pay the deductible (if applicable)

If your policy includes a deductible (an amount you must pay before the insurance coverage applies), you will need to pay this amount as part of the claim settlement.

Step 6: Get the claim settled

Once the insurance provider completes their assessment and verification process, they will inform you of the claim settlement amount. If the claim is approved, the insurer will process the payment accordingly.

Step 7: Keep records

Maintain records of all communication and documentation related to the e-bike insurance claim, including emails, letters, and receipts. This documentation can be helpful for future reference.

FAQs

Is it necessary to buy insurance for an electric bike?

Yes, it is mandatory to have insurance for an electric bike in India. Every electric bike owner is required to have at least third-party liability insurance as per law. This insurance provides coverage for third-party injuries, death, or property damage caused by your electric bike. Failure to have e-bike insurance can result in legal penalties/fines.

Is it necessary to carry PUC certification while riding an e-bike?

No, it is not necessary to carry a Pollution Under Control (PUC) certificate while riding an electric bike in India.

What is the insurance cost for electric bikes?

The insurance cost for electric bikes varies based on several factors, including the bike’s location, age, type of insurance (third-party or comprehensive), add-ons, and the insurance provider. You are advised to use an online premium calculator or contact insurance providers for the most current rates.

Why is e-bike insurance in India so high?

The cost of e-bike insurance in India can be relatively high due to several factors like coverage type, geographical factors, and rising repair costs. 

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