The latter half of the last decade saw the rise of electric vehicle technology where the innovation to tackle the soaring fuel prices and limited natural resources began. Once an imagination, it is now a reality where automobiles entirely are powered by electricity and not fuel. Since then, it is becoming common to hear that the future of automobiles is an all-electric one.
This article mentions some facts about electric bikes and also about its bike insurance policy.
Facts about electric bikes:
- Electric bikes work on battery technology, meaning the vehicle is powered by the electricity stored within its batteries. At present, lithium ion batteries are used to power electric bikes. Due to the absence of the engine, there is no combustion or even exhaust fumes that are required to be treated. *
- Electric bikes have features no less than a traditional internal combustion engine (ICE). Not just features, the power output in terms of acceleration and braking of today’s electric bikes are at par with its ICE counterparts. *
- Since these electric bikes do not have any engine to service, the service cost is comparatively lower. A lower upkeep is required where less moving parts need to be periodically serviced. *
- There are various electric bikes that are available in the market. Depending on the battery capacity and speeds, transport rules for licence and registration apply. For instance, all electric bikes with a battery capacity up to 250 watts and top speed lower than 25 kilometres per hour are not considered as a motor vehicle and hence, skip the requirement of registration as transport rules do not apply.*
- To promote sale of electric vehicles, the government offers Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME) scheme where a concession is offered to buyers of electric vehicles. *
- In addition, tax benefits are also available under Section 80EEB of the Income Tax Act when electric vehicles are bought using finance options. *Tax benefit is subject to change in tax laws.
Facts about bike insurance for electric bikes:
- Electric vehicles are at a nascent stage in terms of its technology as well as use in the Indian market. Hence, there are no exclusive insurance plans that are available for electric bikes. The standard two-wheeler policies for ICE vehicles are extended to cover electric vehicles. *
- Like fuel-operated vehicles, electric bikes also need to be insured with at least third-party coverage as a regulatory requirement. A third-party policy is what protects the policyholder against any legal liabilities in the event of an accident. However, third-party plans lack coverage for any repairs required for your bike. Comprehensive plans come handy to cover the necessary cost of repairs to your bike including a cover for third-party liabilities. *
- In its latest draft notification prescribing third-party premium rates, the insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), has approved a concession of 15% for privately registered third-party two-wheelers whereas a 7.5% concession for hybrid electric vehicles. * You can visit the official website of IRDAI for further details.
- At the end of the policy tenure, make sure to reassess the insurance requirements and only then make a twowheeler insurance renewal. *
- A bike insurance calculator is a nifty tool that can be used to compare the different plans not only based on its bike insurance price, but also the features. So, make sure to use it before finalising on any insurance policy for your electric bike. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.