Understanding Insurance For Electric Bikes

Types of E Bike Insurance Policies 

For EV bikes, there are two types of insurance policies in India:

Third-Party Liability Insurance: 

Third-party liability insurance for an EV bike is compulsory according to the Motor Vehicle Act, 1988. Actually, this insurance policy is mandatory regardless of which type of vehicle you own. This policy secures the insurer against certain financial liabilities. These liabilities pertain to any type of harm to the third-party person or their vehicle. The downside of this policy is that it does not cover the vehicle of the policyholder. 

Comprehensive Insurance for Bike: 

For a better scope of coverage, another type of policy exists which is a comprehensive insurance for the bike. This policy covers the following:

• Third-party liabilities

• Policy holder's damages

• EV bike damages due to disasters, both man-made and natural

In usual circumstances, insurance renewal must take place on a yearly basis. But, policyholders have another option. They can go for long-term EV bike policies. Long-term EV bike policies offer certain advantages like:

• It eliminates the burden of renewing insurance policies every year. 

• It results in higher savings in terms of time and cost compared to the normal shorter policies. 

Ways to Reduce the Premium of Your EV Bikes Insurance

This may be unknown to you as an EV bike owner but you can reduce your insurance premium amount. There are several ways to do it, let's discuss them one by one. 

Go for Online Insurance:

Purchasing insurance online involves low costs as you won't have to pay a fee to an agent. Consequently, the premium amount gets reduced. 

Avoid Minor Claims:

A discount known as No Claim Bonus (NCB) can be offered by the service provider if you avoid claiming in the preceding period. Try to become eligible for this discount by avoiding minor claims. 

Buy Relevant Add-ons:

To make the policy more beneficial, you could purchase some add-ons. However, the key is to go for only those add-ons that are relevant to your EV bike.  

Renew On Time:

Every policyholder is given a 90-day window to renew the policy. Once this window expires, the policyholder will not get the discount against NCB. So, make sure to renew on time. 

Installing an Anti-theft Device:

Did you know that insurance companies can reduce your premium amount if your EV bike has an anti-theft device. That's right, so get one installed before you apply for insurance. For best results, install a device that has received approval from the Automotive Research Association of India (ARAI).