Is Insurance Required for Electric Scooters in India?

  • Author :
  • TATA AIG Team
  • Published on :
  • 16/12/2022

When it comes to innovations in the automobile sector, electric vehicles are undoubtedly our latest obsession. Everyone – right from the manufacturers to the consumers – is excited about this innovative mode of transportation that comes with a reduced carbon footprint while eliminating the cost of fuel. Having said that, since electric vehicles are a new development, they are not free from their challenges. This is particularly the case with electric two-wheelers. Instances such as e-bikes catching fire, or questions about the performance and the safety of e-scooters are rife in the minds of riders. Along with this, several wonder whether the rules for e-scooters are the same as they are for their fuel-run counterparts. And one of the most common questions afflicting new e-scooter riders is: does electric bike need insurance in India?

What are the Rules for Electric Scooter Insurance in India?

If you are among the many wondering, “does electric bike need insurance in India? The answer depends on certain factors. The Motor Vehicle Act of 1988 dictates that every bike owner must at least have third-party bike insurance to ride their two-wheelers in India. As the term suggests, third-party insurance takes care of liabilities to the third-party vehicle and person in the event of unfortunate road mishaps. It does not, however, compensate the policyholder for the damages incurred to their own vehicle or person.

However, according to the Central Motor Vehicle Rules (CMVR), an electric scooter with a power output of fewer than 250 watts and a top speed not above 25 km/hr is a no-registration electric scooter as it is classified as an electric bicycle. For a no-registration electric scooter, third-party two-wheeler insurance is not mandatory.

An important thing to bear in mind is that because the development of electric vehicles is recent, the government is yet to declare specific regulations concerning the matter. However, when it comes to riding two-wheelers, it is best to secure oneself with a comprehensive insurance policy for bikes that takes care of third-party liabilities while also securing the owner/driver and the vehicle. Moreover, with a comprehensive two-wheeler insurance policy not only is your vehicle secured in the event of an accident but is also protected against unpleasant scenarios like theft and fire. Let’s understand the benefits of insurance for e-scooter.

Benefits and Importance of Insurance for E-Scooter

You must not ride your electric scooter without insurance for several reasons, but the most important one is safety. With the purchase of a comprehensive insurance policy for bikes, you are covered against contingency situations on the roads. Moreover, to streamline the process of finding the right insurance cover and enhance convenience, insurance providers have enabled the hassle-free purchase of 2-wheeler insurance online. Let’s look at why electric scooter insurance is important for e-scooter owners:

  • E-Scooters are Expensive

Electric vehicles are still in their nascent stage. As this development is new, it comes at a price. The elements of an electric scooter such as its motor, controller, and, most importantly, battery – are all expensive. Additionally, despite the encouragement by the government for greater adoption of electric vehicles, they have only managed to capture a small niche. Owing to this, the benefit transferred to manufacturers is limited, which subsequently increases the price of electric scooters. Considering this, if you own an electric bike and no insurance to secure it, you will have to incur any damage to the vehicle from your pocket. In case of severe damages, the repairs can burn a sizeable hole in your savings.

  • E-Scooter Insurance is Affordable

A common misconception surrounding the comprehensive two-wheeler insurance policy is that it is expensive to get one. However, not only is two-wheeler insurance affordably priced but it also acts as a financial cover for the heavy expenses one might incur if an unpleasant situation befalls while riding. Insurance seekers can further enhance their savings by investing in 2-wheeler insurance online by easily comparing policies and finding the most suitable cover. Additionally, as most e-scooters have a speed limit ranging between 60-70 km/hr, they are most suitable for daily commutes. Since the limited speed lowers risk, a two-wheeler insurance policy for electric scooters becomes more reasonable. And so, investing in 2-wheeler insurance online for your e-scooter is a cost-effective way to protect your vehicle and yourself.

  • High Risk Associated

E-scooters are the best pick for short commutes. However, they are still exposed to major risks and accidents on the road. If something goes wrong and your bike is damaged, your insurance policy for the bike can keep you from significantly denting your savings. Contrarily, if you own an electric scooter without insurance, all the damages and replacements will have to be borne from the pocket of the owner/driver of the vehicle.

  • Customising Your Insurance Cover

Every individual has their own requirements and preferences. Thankfully, insurance providers are sensitive to these distinct requirements and enable insurance seekers to customise their policies to find the best-suited cover. The two-wheeler insurance policy by Tata AIG comes with eight unique add-on covers to enhance protection and enable policy customisation for every rider.

Documents Needed for Insuring your E-Scooter

No-registration electric scooters, meaning the ones having power less than 250w, do not require RTO registration. Since their top speed is not more than 25Kmph, they are not considered to be causing fatal accidents. Therefore, No-registration electric scooters do not legally require insurance coverage. However, having insurance coverage can take care of the repair costs in case it gets into an accident.

The process for getting insurance for an electric scooter is the same as insuring a fuel-run two-wheeler. Therefore, to insure your e-bike, you will only have to produce three important documents:

  • Proof of address such as your PAN card
  • Proof of identity such as your passport or your Aadhar card and
  • Two passport-sized photographs

You can visit the insurance company with the aforementioned documents to purchase insurance for your two-wheeler. You can even conveniently buy 2-wheeler insurance online by uploading digital copies of these documents on the official website of your insurance provider.

To Conclude

The carbon emissions by motor vehicles play a dominant role in distressing the environmental balance. Acknowledging the eco-friendly potential of e-scooters, the government has been dedicating a lot of effort to popularise electric vehicles. However, this latest innovation will need to be adequately secured for the rider, and a comprehensive two-wheeler insurance policy does just that. If you own an electric bike and no insurance to secure it, you will have to incur damages from your pocket, which can compromise your financial health. To prevent this, all e-bike owners are advised to carefully analyse their insurance needs and appropriately secure themselves and their vehicles with comprehensive two-wheeler insurance.

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Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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