Do Electric Bikes Need Insurance in India?

Posted by Anna Johnson on August 7th, 2024

Two frequent questions about electric bikes are: do you need insurance for an electric bike, and is insurance mandatory for them in India? – YES, for both!

Electric bike insurance is mandatory in India, and your electric bike also needs the protection of good bike insurance. Your EV bike is not immune to accidents, damage, partial and total loss and other expenses relevant to a bike.

So, it is paramount to comprehend the importance of a bike insurance policy for your EV and understand why you need it!

Electric Bike Insurance in India – Is it Mandatory?

According to the Motor Vehicle Act of 1988, it is mandatory to insure your two-wheeler, even an electric two-wheeler, with bike insurance. It mentions that all types of two-wheeler vehicles must be insured with at least third-party liability insurance.

Any bike owner who fails to protect their electric bike with bike insurance will be subjected to legal fines and punishments, such as penalties of up to ₹4,000/- and imprisonment up to 3 months.

If the traffic police constable asks you for your policy papers, you need to present them in a physical or digital format.

Buying electric bike insurance is a significant step towards protecting your electric bike from damage. So, buy the best insurance for electric bikes from reliable insurance companies like Tata AIG.

Benefits of Electric Bike Insurance in India

Comprehensive Coverage

Comprehensive electric bike insurance offers financial relief in cases of theft, fire, natural disaster, total and partial loss and accidental damage. It covers your bike’s damages as well as the third-party damages and liabilities.

It not only offers extensive coverage for owner-driver but also the pillion passengers. This electric bike insurance cover ensures complete, all-inclusive and comprehensive coverage.

Moreover, a lot of insurers like Tata AIG also now offer specialised add-on covers for electric bikes. These covers can offer specialised coverage for parts like the battery or enhanced protection for damages like arcing, self-heating, leakage of electricity or short-circuiting, etc.

High Maintenance

Electric bikes are high maintenance and consist of sophisticated technology and components, like batteries, electric drive units, thermal management systems, battery management systems, auxiliary systems and high-voltage wiring. These can be expensive to repair or replace.

Electric bike insurance cover offers financial relief when it comes to the repair and replacement of these parts.

Risk Probability

Electric bikes are as prone to accidents as normal bikes are. However, they can be expensive to repair or replace in cases of a total loss of major accident. Buying electric bike insurance online offers a safety net for any kind of damage and disruption from theft, accident and natural calamities.

Third-Party Liability

The comprehensive coverage and third-party liability insurance policies offer financial coverage for expenses and liabilities incurred due to third-party damage. This aspect of insurance not only offers financial protection from unforeseen financial losses but also legal defence.

Cost-Efficient

Let's make a direct comparison of general bike insurance and electric bike insurance. You can observe that bike insurance for electric two-wheelers is more expensive than the other one. However, the kind of protection these policies offer is unparalleled.

It provides risk mitigation and minimisation, considering the high costs associated with electric bike maintenance and repairs.

Legal Compliance

As mentioned above, it is important to insure your EV with the best insurance for electric bikes since it is mandatory. Buying electric bike insurance online saves you from all the legal fines and punishments.

• The minimum age to ride an electric bike is 18 years of age.
• The electric bike owner-driver must possess a valid driving licence.
• You must register your electric vehicle two-wheeler at a Regional Transport Office.
• The driver-owner must drive their electric bike with a helmet on.
• An electric bike owner needs to pay road taxes.
• The driver-owner of the electric bike must follow all the number-plate rules relevant to the electric bikes: green background and white letters.

Ending Note

All bike owners, including owners of electric bikes, are required to have bike insurance. In a country like India, better safety and security are needed to enhance your bike’s life expectancy. We can conclude that your electric bike needs insurance. Choose a coverage that best suits your electric bike requirements.