Electric bikes might be a new concept, but their safety cannot be denied. It is also environment-friendly and noise-free, which is good for reducing pollution damaging our ecosystem. Taking all these into consideration, it is highly likely that e-bikes will be the next viable option in the coming years. Subsequently, the insurance market is coming up with various two-wheeler insurance products for electric bikes as well.
If you own an electric bike, you must get it insured just like any other vehicle. So, let us understand electric two-wheeler insurance and how to buy one.
What is electric bike insurance?
As the e-bike industry is still developing, the cost of these bikes is high and small damage might cost you a fortune. So, to avoid such circumstances, you must have insurance to protect you from any additional cost. Hence, you need electric two-wheeler insurance. Furthermore, the mandate of third-party bike insurance applies to electric bikes as well.
An electric bike insurance policy is a type of two-wheeler insurance that protects your e-scooters from any potential loss and damage in case of any unforeseen circumstances. This insurance will cover your bike from natural calamities, fire, or theft. You have to pay a decided premium rate monthly, yearly, quarterly, or bi-yearly.
What are the benefits of electric two-wheeler insurance?
Below are some of the benefits of getting two-wheeler insurance for your e-bike:
Protects you legally: Third-party bike insurance is mandated by law, making getting one compulsory. This applies to electric bikes as well. Without bike insurance, you might be fined, or worse, you might be jailed. Hence, having insurance for your e-bike will help you eliminate the risk of getting caught by the law.
Reduces the financial burden: A comprehensive bike insurance policy provides you with all-around protection for your electric bike. It helps your e-bike protect from both natural and man-made distress. By opting for add-ons, you can extend the coverage offered by the comprehensive policy.
6 tips to consider while buying a two-wheeler insurance
Listed below are 6 major points that you should keep in mind while buying two-wheeler insurance:
1) Know the types of two-wheeler insurance policies available: There are two types of insurance policies offered by insurance companies -
- Third-party bike insurance policy - It is a policy that covers you financially and legally against the damage caused to a third-party person, vehicle, or property due to an accident involving your bike.
- Comprehensive bike insurance policy - Comprehensive insurance is an extended third-party insurance policy that covers you against everything - from third-party liability to own damage.
Knowing the types of two-wheeler insurance plans available will help you decide better which one you should purchase.
2) Buy insurance online: Buying a policy online can be helpful, and you can go through several insurance policies and check various insurance providers before picking and finalising one. If you are visiting the insurance company in person, it will take a lot of time, and you might buy a policy that does not fulfil your needs. Also, relying on an insurance agent will cost you a lot.
3) Check the company’s history: There are several online review platforms where you can find out about the company and its claim history. You can also check the customer testimonials on the website to see what people have to say about the company. This is helpful at the time of raising a claim. This will also tell you about the company’s credibility.
Also, remember to check the company's CSR (Claim Settlement Ratio), as it tells you how many claims the company has settled in a year. Always shortlist the insurance companies with a CSR of above 90% - this means you won’t have to struggle when settling a claim.
4) Know the exclusion of the two-wheeler insurance policy: To know the exclusions in the policy you have selected, you must read the policy document thoroughly to know what is covered and what is not. Below are some of the situations which are not covered under your electric two-wheeler insurance:
- Drink and drive without a licence
- Contributory negligence (driving your e-bike in a flooded area)
- Consequential damage
- Driving without a valid driving licence
- Driving without a valid insurance document
5) Know what a policy will cover: Once again, you must check your policy document thoroughly to ensure you have enough information on the coverage offered. This will help eliminate any confusion or hassle when filing a claim. A two-wheeler insurance policy for electric bikes covers the following:
- Damage caused due to theft and accidents
- Damage caused due to fire
- Damage due to flood, earthquake, landslide, and other natural disasters
- Damages caused due to riots, vandalism, etc.
- Third-party legal liability
6) Set the right IDV (Insured Declared Value): IDV is the current market value of your electric bike by which the insurance policy premium is calculated. You need to set the IDV of your bike at the time of buying a third-party bike insurance policy for your e-bike. This value can easily be calculated by estimating the current market value of your vehicle. The IDV of the bike depends on the vehicle's engine capacity. The higher the capacity, the higher your insured declared value will be.
Electric bikes are a great initiative to control the environmental damage caused due to pollution. However, as the industry is still growing and expanding, these e-vehicles are costly. So, if you own an electric bike, you must get mandatory two-wheeler insurance for your bike. Also, keep in mind to always compare and check the plans and the policy available with several insurers.
Disclaimer - The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.