Electric vehicles have taken the automobile industry by storm, whether it’s the two-wheeler or four-wheeler market.Some of the biggest reasons for the increasing popularity of these bikes are that they have a greater resale value, minimal maintenance costs, inexpensive bike insurance premiums, and do not pollute the environment. If you are planning to purchase a new electric bike, then here is all you need to know about the e-bike license and vehicle insurance.
When do you need e-bike insurance?
According to government regulations, if you buy an electric bike with a power capacity of less than 250W and a top speed not exceeding 25kmph, it is not categorized under motor vehicles. You don’t need a license to ride such a bike. In addition, it is also not mandatory to purchase bike insurance for such vehicles.
However, if your bike power capacity is more than 250W and has a top speed of up to 60kmph, then a driving license, as well as a registration certificate, is mandatory.
What is e-bike insurance?
E-bike insurance is not yet widely available in India, but before you assume that vehicle insurance companies do not cover e-bikes, let us dispel the myth. Several insurers are coming up with a go-green campaign, allowing e-bike owners to purchase long term bike insurance. Since e-bikes do not have a high top speed, they pose a low danger of third-party damage and other on-road fatalities. Compared to conventional Activa insurance or other bike insurance, the premium is also significantly lower.
Just like other bike insurance, you can purchase third-party liability cover or comprehensive insurance for your e-bike too. However, before you pay for the insurance, make sure you go through the policy’s fine print and understand various clauses.
What are the benefits of e-bike insurance plans?
E-bikes insurance offers numerous benefits similar to what conventional bike insurance provides.Some of the benefits are listed below:
- Road accidents: The vehicle insurance of your e-bike covers the cost of repairs if your bike sustains loss or is damaged in an accident. However, keep in mind that bike insurance is valid only if you are riding with a valid driver’s license and are not intoxicated at the time of the accident.
- Theft:The vehicle insurance of your e-bike covers the event where your bike is stolen. It works similar to theft covered under bike insurance. So, for instance, if you have an Activa scooter and some of its parts are stolen, then the Activa insurance policy will not cover the theft. It will only cover in case your Activa two-wheeler is stolen.
- Fire: The bike insurance of your e-bike covers the loss and damage to your bike due to the fire outbreak. However, if the fire is due to a war outbreak or nuclear explosion, the vehicle insurance company will not compensate for such losses.
- Natural calamity: The bike insurance for your e-bike covers the loss or damage that your bike incurred due to a natural disaster. Natural disasters include earthquakes, cyclones, floods, landslides, storms, etc.
- Man made calamity: The two wheeler insurance for your e-bike covers the loss or damage that your bike incurred due to a man made disaster. Man made disasters include occurrences such as riots, vandalism and terrorism,among others.
- Third-party liability: If your e-bike causes bodily injury to a third party or damages their property in an accident, the third-party liability e-bike insurance will cover such losses.
Purchasing bike insurance for e-bikes is crucial. Compared to conventional bikes, parts and components of electric vehicles are more costly and are also not easily available. In the event of loss or damage during an unfortunate event, repairing these bikes requires a hefty sum. However, you may protect yourself from such unplanned expenses with a motor insurance policy for your e-bike.
Smriti Jain is the owner and senior content publisher at Financesmarti. Financesmarti is a website where she shares a lot of useful stuff for the people and business of India. This includes small business ideas and other banking information, as well. Smriti completed her education in science & technology from Delhi University. Smriti usually has interests in digital marketing now, and she has chosen this career for the full-time opportunity. The primary purpose of starting this blog to provide quality information on the banking industry to the people.