Electric vehicles have undoubtedly become the latest trend worldwide. Be it manufacturers or consumers, everyone is excited about this innovative mode of transportation that comes with reduced carbon emissions while eliminating the cost of fuel. As these vehicles run on batteries, they also play a significant role in maintaining the environmental balance. Having said that, this latest innovation is not free from challenges. Especially with electric two-wheelers, many e-bikes are catching fire, and doubts about their performance and safety have been reported.
So, securing this innovation for the rider is of utmost priority, and a comprehensive two-wheeler insurance policy does just that. But do electric scooters need insurance in India? Is it mandatory by law? If not, why is there a need for insurance?
Continue reading as we have answered all your questions in this article.
Guidelines for Electric Scooter Insurance
The Motor Vehicle Act of 1988 states that every two-wheeler owner must at least have third-party bike insurance to ride their vehicle in India. However, according to the Central Motor Vehicle Rules (CMVR) and Automotive Research Association of India (ARAI), an electric scooter that is equipped with a 250-watt motor and has a maximum speed of not more than 25 km/hour is a no-registration electric bike/scooter. It is classified as an electric bicycle in the eyes of the law and requires a driver’s license, vehicle RC, insurance, or PUC to ride on the road. It is also exempted from any road tax payment. Therefore, third-party two-wheeler insurance is not mandatory for an electric scooter with no RC.
But, it is strongly recommended that two-wheeler owners secure themselves with a comprehensive insurance policy. With a comprehensive two-wheeler insurance policy, not only is your vehicle secured in the event of contingency situations on the road, but it is also protected against scenarios like theft and accidental fire.
Benefits
Electric scooters with no RC do not require RTO registration. Since their maximum speed is not more than 25 kmph, they are not considered to be causing fatal accidents on roads. Therefore, Non-registered electric scooters are not legally required to get insurance coverage. It is completely optional whether an e-scooter owner wants to get insurance coverage or not. However, having an insurance plan has many benefits. Some of them include:
- Insured E-Scooter helps vehicle owners from denting their savings in vehicle damages and repair.
- Insurance cover can help mitigate the high risk associated with E-Scooter.
- Vehicle owners can customize their insurance plans as per their needs and preferences.
- Affordable Insurance plans for electric scooters.
What happens if you do not get your e-scooter insured?
Individuals who own an electric scooter and have no insurance coverage to secure it will have to incur all the damages and repair costs from their pocket in case of any mishap, which can compromise their financial standing. To avoid this situation, all e-scooter owners are advised to look for the best insurance plans that meet their needs and secure themselves and their vehicles.
Important documents required for getting Insurance for an E-Scooter without RC
Documents required to get insurance for an Electric Scooter include:
- ID proof (including Aadhar card, PAN card, Passport, etc.)
- Proof of address (such as Aadhar card, Voter card, driver’s license, etc.)
- Two passport size photograph
Insurance seekers can physically visit the insurance company with the aforementioned documents to buy an insurance policy for their electric scooter. They can even purchase two-wheeler insurance coverage online by uploading digital copies of the required documents on the official website of their insurance provider.
Important Note: It might be difficult to locate insurance companies/agencies that provide electric scooter or bike coverage. However, with proper research and thorough analysis, you can find the best insurance plan and provider that meets your requirements.
Top Electric Scooter/e-Scooter Insurance Providers
It is crucial to perform thorough research to find insurance companies that offer coverage
for e-scooter. Some of the top companies provide lucrative insurance plans for electric
scooters/bikes are as follows:
From Policy Bazaar Insurance
| Engine CC of the E-Bike | Third-Party E-Bike Insurance Premium Prices (in ₹) (w.e.f 1st June 2022) |
| Up to 3 KW | ₹ 457 |
| Over 3 KW and up to 7 KW | ₹ 607 |
| Over 7 KW and up to 16 KW | ₹ 1,161 |
| Over 16 KW | ₹ 2,383 |
From Acko Car Insurance
| Two-wheelers with kilowatt capacity (kW) | The premium rate for long-term policy (5-year) | Premium rate for long-term policy (5-year) |
|---|---|---|
| Less than 3 kW | Rs. 457 | Rs. 2,466 |
| More than 3 kW but less than 7 kW | Rs. 607 | Rs. 3,273 |
| More than 7 kW but less than 16 kW | Rs. 1,161 | Rs. 6,260 |
| More than 16 kW | Rs. 2,383 | Rs. 12,849 |
From Godigit Insurance
| Two-wheelers with kilowatt capacity (KW) | The premium rate for a one-year policy | Premium* rate for long-term policy |
| Not exceeding 3 KW | ₹457 | ₹2,466 |
| Exceeding 3 KW but not exceeding 7 KW | ₹609 | ₹3,273 |
| Exceeding 7 KW but not exceeding 16 KW | ₹1,161 | ₹6,260 |
| Exceeding 16 KW | ₹2,383 | ₹12,849 |
Top Car Insurance Companies in India
HDFC Ergo Car Insurance
In 2015, after a joint venture, HDFC and ERGO came into alliance. The company has over 6700 cashless garages and offers services like overnight vehicle repairs. With a 4.4 customer rating, HDFC Ergo has over 1.5 Crore happy customers. HDFC Ergo provides a 100% claim settlement ratio where 80% of claims are settled within one day.
| Metric | Data |
|---|---|
| Company name | HDFC Ergo General Insurance |
| Headquarters | Mumbai, India |
| Founded | 1999 |
| Customers | Over 10 million |
| Claim settlement ratio | 96.2% |
| Number of claims settled | 3 million |
| Average claim settlement time | 22 days |
| Network of garages | 3,000+ |
| 24/7 emergency assistance | Yes |
United India Car Insurance
Incorporated in February 1938, United India Car Insurance has over 1.38 crore customers. It provides various insurance products and has a 95% claim settlement ratio. The company excels in achieving the goal of 100% customer satisfaction.
| Metric | Data |
|---|---|
| Company name | United India Insurance |
| Headquarters | Kolkata, India |
| Founded | 1938 |
| Customers | Over 15 million |
| Claim settlement ratio | 95.4% |
| Number of claims settled | 4 million |
| Average claim settlement time | 20 days |
| Network of garages | 3,000+ |
| 24/7 emergency assistance | Yes |
ICICI Lombard Car Insurance
Founded in 2001, ICICI Lombard General Insurance Company Ltd. offers a comprehensive and wide variety of insurance products. The company has a claim settlement ratio of 93.4% for motor insurance. With a 4.7 customer rating, ICICI Lombard has issued a car insurance policy for over 2.17 crore individuals.
| Metric | Data |
|---|---|
| Company name | ICICI Lombard General Insurance |
| Headquarters | Mumbai, India |
| Founded | 1993 |
| Customers | Over 17 million |
| Claim settlement ratio | 96.3% |
| Number of claims settled | 4.5 million |
| Average claim settlement time | 23 days |
| Network of garages | 4,000+ |
| 24/7 emergency assistance | Yes |
New India Car Assurance
Founded in 1919, New India Car Assurance has a 92% claim settlement ratio. With a huge customer market, the company provides world-class service both in India and abroad.
| Metric | Data |
|---|---|
| Company name | New India Assurance |
| Headquarters | Mumbai, India |
| Founded | 1919 |
| Customers | Over 25 million |
| Claim settlement ratio | 95.6% |
| Number of claims settled | 6.5 million |
| Average claim settlement time | 25 days |
| Network of garages | 5,000+ |
| 24/7 emergency assistance | Yes |
Royal Sundaram Car Insurance
Established in October 2000, Royal Sundaram Car Insurance is trusted by over 28 million Indians. The company has a 99% claim settlement ratio and provides complete protection for your vehicle.
| Metric | Data |
|---|---|
| Company name | Royal Sundaram General Insurance |
| Headquarters | Chennai, India |
| Founded | 1956 |
| Customers | Over 5 million |
| Claim settlement ratio | 95% |
| Number of claims settled | 1.2 million |
| Average claim settlement time | 22 days |
| Network of garages | 3,500+ |
| 24/7 emergency assistance | Yes |
Digit Car Insurance
Established in the year 2016, Digit Insurance is trusted by over 3 crore Indians and has a 96% claim settlement ratio.
| Attribute | Value |
|---|---|
| Company Name | Digit General Insurance |
| Headquarters | Bengaluru, India |
| Founded | 2016 |
| Customers | Over 2 million |
| Claim Settlement Ratio | 96% |
| Number of Claims Settled | 1 million |
| Average Claim Settlement Time | 15 days |
| Network of Garages | 1,000+ |
| 24/7 Emergency Assistance | Yes |
Cholamandalam Car Insurance
Founded in 2001, Cholamandalam MS caters to different customer needs. With a 96% claim settlement ratio, the company is highly trusted by customers.
| Feature | Details |
|---|---|
| Company name | Cholamandalam MS General Insurance Company Limited |
| Headquarters | Chennai, Tamil Nadu, India |
| Founded | 1989 |
| Parent company | Murugappa Group |
| Japanese partner | Mitsui Sumitomo Insurance Company Limited |
| Products | Motor insurance, health insurance, travel insurance, home insurance, and other general insurance products |
| Website | https://www.cholainsurance.com/ |
| Total customers | 10 million+ |
| Claim settlement ratio | 96% (FY 2021-22) |
Future Generali Car Insurance
Future Generali has been in business since 2006 and has a 96% claim settlement ratio. With over 121 branches across India, the company serves its customers 24 hours a day.
| Feature | Details |
|---|---|
| Company name | Future Generali India Insurance Company Limited |
| Headquarters | Mumbai, India |
| Founded | 2007 |
| Parent company | Future Group |
| Products | Car insurance, health insurance, travel insurance, home insurance, and other general insurance products |
| Customers | Over 10 million |
| Claim settlement ratio | 95.2% (FY 2021-22) |
| Number of claims settled | 1.2 million (FY 2021-22) |
| Average claim settlement time | 30 days |
| Network of garages | 3,500+ |
| 24/7 emergency assistance | Yes |
Reliance Car Insurance
Founded in August 2000, Reliance Car Insurance has managed to meet customer expectations with its effortless service. With a 96% claim settlement ratio, the company is popular among customers.
| Metric | Data |
|---|---|
| Company name | Reliance General Insurance Company Limited |
| Headquarters | Mumbai, India |
| Founded | 2005 |
| Parent company | Reliance Industries Limited |
| Products | Car insurance, health insurance, travel insurance, home insurance, and other general insurance products |
| Customers | Over 10 million |
| Claim settlement ratio | 95% (FY 2021-22) |
| Number of claims settled | 1.2 million (FY 2021-22) |
| Average claim settlement time | 30 days |
| Network of garages | 3,500+ |
| 24/7 emergency assistance | Yes |
Liberty Car Insurance
Founded in 2013, Liberty Car Insurance has over 110 offices across. The company has issued 20 crore policies since 2013 and has a 98% claim settlement ratio.
| Metric | Data |
|---|---|
| Company name | Liberty General Insurance Limited |
| Headquarters | Mumbai, India |
| Founded | 2006 |
| Parent company | Liberty Citystate Holdings Pte. Ltd. |
| Products | Car insurance, health insurance, travel insurance, home insurance, and other general insurance products |
| Customers | Over 5 million |
| Claim settlement ratio | 95.4% (FY 2021-22) |
| Number of claims settled | 1 million (FY 2021-22) |
| Average claim settlement time | 25 days |
| Network of garages | 2,500+ |
| 24/7 emergency assistance | Yes |
Kotak Car Insurance
Established in April 2015, Kotak Car Insurance has over 1.1 crore customers. With 4000+ network garages, the company has a 98% claim settlement ratio.
| Metric | Data |
|---|---|
| Company name | Kotak Mahindra General Insurance |
| Headquarters | Mumbai, India |
| Founded | 2002 |
| Customers | Over 5 million |
| Claim settlement ratio | 96.8% |
| Number of claims settled | 1.1 million |
| Average claim settlement time | 23 days |
| Network of garages | 3,000+ |
| 24/7 emergency assistance | Yes |
Bajaj Allianz Car Insurance
Founded in 1926, Bajaj Allianz is a customer-centric organization. Bajaj Allianz customers can get 24*7 roadside assistance. With a 99% claim settlement ratio, the company makes sure to provide what its customers need.
| Metric | Data |
|---|---|
| Company name | Bajaj Allianz General Insurance |
| Headquarters | Mumbai, India |
| Founded | 2001 |
| Customers | Over 10 million |
| Claim settlement ratio | 96.3% |
| Number of claims settled | 1.5 million |
| Average claim settlement time | 22 days |
| Network of garages | 4,000+ |
| 24/7 emergency assistance | Yes |
Zuno Car Insurance
Established in 2016, Zuno is a trusted insurance provider in India. With a huge customer base, the company has a 98% claim settlement ratio
| Metric | Data |
|---|---|
| Company name | Zuno General Insurance |
| Headquarters | Mumbai, India |
| Founded | 2017 |
| Customers | Over 1 million |
| Claim settlement ratio | 97% |
| Number of claims settled | 500,000 |
| Average claim settlement time | 15 days |
| Network of garages | 1,000+ |
| 24/7 emergency assistance | Yes |
| Key features |
|
Universal Sompo Car Insurance
In 2008, Universal Sompo General Insurance started its business in India. The company’s PAN India presence provides customers with 24*7 assistance, a quick claim process, and the best insurance deals. Universal Sompo has a 96% claim settlement ratio.
| Metric | Data |
|---|---|
| Company name | Zuno General Insurance |
| Headquarters | Mumbai, India |
| Founded | 2017 |
| Customers | Over 1 million |
| Claim settlement ratio | 97% |
| Number of claims settled | 500,000 |
| Average claim settlement time | 15 days |
| Network of garages | 1,000+ |
| 24/7 emergency assistance | Yes |
IFFCO Tokio Car Insurance
IFFCO Tokio Car Insurance was founded in the year 2000 as a joint venture between IFFCO Tokio and Tokio Marine Asia. With a customer rating of 4.8, the company has a 96% claim settlement ratio.
| Metric | Data |
|---|---|
| Company name | IFFCO Tokio General Insurance |
| Headquarters | Mumbai, India |
| Founded | 2000 |
| Parent company | IFFCO (Indian Farmers Fertiliser Cooperative Limited) and Tokio Marine Group |
| Customers | Over 5 million |
| Claim settlement ratio | 96% |
| Number of claims settled | 1.2 million |
| Average claim settlement time | 25 days |
| Network of garages | 2,500+ |
| 24/7 emergency assistance | Yes |