The electric bike market is poised for substantial growth, with a projected Compound Annual Growth Rate (CAGR) of 42.95% between FY 2020 and FY 2024. Despite government initiatives encouraging e-bike adoption, consumers often need more knowledge about purchasing and insuring electric bikes, leading to misconceptions about the associated costs.
The Need For Electric Bike Insurance
Contrary to common belief, obtaining electric vehicle insurance is affordable and crucial. The intricate and costly components of electric bikes necessitate comprehensive electric bike insurance in India coverage to mitigate potential financial burdens resulting from accidents. Claims are subject to terms and conditions set forth under the motor insurance policy. *
The prevailing misconception about the high cost of electric bike insurance is dispelled by the affordability of quotes, especially when purchased online.
Factor To Check When Purchasing An Electric Bike
Before delving into the specifics of insurance for electric vehicles, prospective buyers should consider several factors when purchasing an electric bike.
- Budget Considerations: Electric bikes come with a significant price tag, making it imperative to establish budget constraints before exploring options
- Warranty And Battery Life: Given the expensive nature of battery replacement, understanding the warranty and opting for lithium-ion batteries for superior performance is crucial.
- Travel Range And Charging Time: The performance of an electric bike is heavily influenced by its travel range and charging time. Models with longer ranges and fast-charging capabilities are available for those willing to invest more.
- Reliability: Electric bikes are designed for short commutes, emphasising the importance of assessing their reliability for intended usage.
- Electric Bike Purchasing Tips To Save Money: While electric bikes may have a higher upfront cost, there are avenues for saving money in the long run
- Tax Advantages: Buyers can leverage tax benefits associated with lower sales tax or GST for electric bikes compared to traditional fuel-powered vehicles. *
- Bike Insurance Policy: Unlike expectations, e-bike insurance is affordable, primarily online. Electric vehicle insurance provides comprehensive coverage with various rider options.
- Registration Costs: Low-speed electric scooters may not require registration, offering potential savings on registration fees. Additionally, some electric bikes may not require a license for operation
- Government Policies Supporting Electric Bike Adoption: Governments are actively promoting the adoption of electric bikes through various policies and incentives
- Electrification Mandate: The Indian government has mandated the electrification of two-wheelers with a displacement capacity of less than 150cc by March 2025 to reduce pollution and lower import bills
- Incentives And Fee Waivers: The Delhi and Telangana governments have waived road taxes and registration fees for new e-bike purchases. Incentives, such as claiming ₹5,000 for discarding fuel-powered two-wheelers, further encourage electric bike adoption.
- Charging Infrastructure: To address the reliability concern, the government plans to establish charging stations within a 3-kilometre radius, ensuring hassle-free travel and mitigating the risk of running out of power.
The future of short-distance commuting lies in electric bikes, and while the decision-making process may seem complex, increased awareness and streamlined options are expected. Thoroughly analysing features and disadvantages before purchasing an electric motorcycle ensures a well-informed and satisfactory buying experience.
*Standard T&C Apply
**Tax benefits are subject to change in prevalent tax laws.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.