Insurance for electric scooters: India is on the cusp of an electric vehicles (EV) revolution, including the two-wheeler segment with multiple new and old players already in the fray already. According to a report by KPMG in association with CII, electric two-wheeler penetration in India is expected to reach 25-35 per cent by 2030.

Recently, ride-hailing service provider Ola created a buzz by giving a sneak peek of its Made in India electric scooters. While this two-wheeler is yet to be formally launched, registrations have started. Before Ola, several electric scooters launched by companies like Hero, Honda, Ather Energy, Bajaj etc. are rapidly gaining customer interest.

eVehicles are seen as the future of the country and most leading automobile manufacturers are working to improve their offerings. A study by the Centre of Energy Finance (CEEW) estimates the Indian Electric Automobile industry to become worth $206 billion by the end of 2030. The Government is also focused on improving the charging facilities across the country to provide the necessary impetus to this environment-friendly transport.

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As the electric scooters and bikes gain momentum, insuring them has also gained importance. Dhirendra Mahyavanshi, Co-Founder, Turtlemint (An InsurTech Company) says the insurance plans for electric bikes/scooters have been designed to provide comprehensive coverage, including the battery, which forms an important component of the bike.

What are the insurance policies for electric bikes/scooters?

Mahyavanshi told FE online that typically, all types of electric bikes and scooters can be insured under the same motor insurance plans that are available for regular non-electric two-wheelers for a third party or comprehensive coverage.

Since third-party coverage is legally mandatory as per the Motor Vehicles Act, 1988, it covers third-party financial liabilities suffered in the following cases –

  • If the electric two-wheeler causes the death of an individual
  • If the insured two-wheeler causes bodily injury to a third party
  • If the electric bike/scooter causes third party property damage

Total coverage

According to Mahyavanshi, for a new electric bike or scooter, third-party coverage should be taken for a mandatory period of 5 years.

Coverage under the third party cover is up to Rs 7.5 lakh for property damages. For death and bodily injuries, however, the coverage is unlimited.

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However, a comprehensive plan is recommended for electric bikes/scooters for the coverage offered as it covers mandatory third-party liability as necessitated by the Act along with:

  • Damages suffered by the two-wheeler due to natural calamities like flood, lightning, earthquake, hurricane, cyclone, etc.
  • Damages suffered due to man-made calamities like fire, explosion, riots, malicious acts, etc.
  • Theft of the vehicle
  • Damages suffered in transit by road, rail, air or water

Add ons

There is also a range of add-ons that you can opt for with the comprehensive policy for all-round protection of the two-wheeler. Mahyavanshi said that popular add-ons include the following:

  • Zero depreciation add-on which eliminates the applicable depreciation at the time of claim and enhances the claim pay-out
  • Roadside assistance (RSA) add-on which provides 24*7 assistance in the case of breakdowns
  • NCB protection add-on that protects the no claim discount even in a claim
  • Return to invoice (RTI) add-on that pays the invoice value of the two-wheeler in the case of total loss or theft
  • Engine and gear-box protection add-on covers any damage, especially due to rains and floods to the engine and gear box of your electric bike would be covered.

“If you opt for bundled comprehensive coverage for a new electric two-wheeler, the own-damage coverage would be available for one year but the third-party coverage would be for 5 years. While the third party cover would run for 5 years, non-stop, you would have to renew your own damage cover annually to enjoy uninterrupted coverage,” the Turtlemint co-founder said for all-round protection.