How EV Bike Insurance Differs from Petrol Two-Wheelers

The world is moving towards sustainable transportation, and electric vehicles (EVs) are leading the way. While EV bikes come with many benefits, such as lower running costs and eco-friendliness, they also present new challenges when it comes to two-wheeler insurance. If you're considering buying an EV bike or switching from a petrol one, it's important to understand how their insurance policies differ.

Basics of Two-Wheeler Insurance for EV and Petrol Bikes

Whether you own an EV or a petrol bike, having two-wheeler insurance is mandatory in India. The Motor Vehicles Act mandates at least third-party insurance for all two-wheelers, ensuring financial protection in case of accidents or damages. However, there are significant differences in insurance policies for EV bikes and petrol two-wheelers.

Key Differences:

1. Premium Calculation: EV insurance premiums depend on battery capacity, whereas petrol bike premiums are based on engine displacement (CC).
2. Coverage: Comprehensive EV insurance covers battery damage, which is not a concern for petrol bikes.
3. Repair and Replacement Costs: Since EV parts, especially batteries, are expensive, insurance providers adjust coverage accordingly.
4. Discounts and Benefits: Some insurers offer green discounts for EV bike insurance policies.

Premium Costs: Is EV Insurance Cheaper or More Expensive?

Insurance premiums for EV bikes are calculated differently from petrol bikes. Instead of engine cubic capacity (CC), EV bike premiums are determined by battery power, measured in kilowatts (kW). As a general trend:

• Lower-capacity EV bikes (up to 3kW) often have cheaper premiums.
• Higher-capacity EV bikes (above 3kW) might attract higher premiums due to expensive battery replacement costs.

Petrol bikes, on the other hand, have premium rates linked to their engine size. A 100cc bike will generally have a lower premium than a 500cc one.

Why Do EV Premiums Vary?

Insurance companies consider several factors when determining the premium for EV bike insurance:

• Battery Type and Quality: High-end lithium-ion batteries cost more, leading to higher premiums.
• Brand and Model: Some EV models have expensive spare parts and specialised repairs.
• Government Incentives: Subsidies and tax benefits may reduce the cost of EV bike insurance.

What Does EV Bike Insurance Cover?

Standard coverage:

1. Third-party liability (mandatory for all bikes)
2. Own damage (optional but recommended)
3. Theft protection
4. Accidental damage
5. Personal accident cover

Unique EV-specific coverage:

1. Battery Protection: Since batteries are the most expensive part of an EV, some policies cover damage due to electrical failure or water damage.
2. Charging Equipment Cover: Some policies extend coverage to home charging units and portable chargers.
3. Short Circuit and Fire Protection: EVs are prone to electrical issues, making this coverage essential.
4. Towing Assistance: Since EVs can run out of charge, insurers may include roadside assistance for towing the two-wheeler to the nearest charging station.

Understanding No Claim Bonus in Bike Insurance

A no claim bonus in bike insurance is a discount on your insurance premium for not making any claims in the previous policy year. This applies to both petrol and EV bikes. The longer you go without a claim, the larger the discount, which can go up to 50%. However, EV insurance policies may have slightly different NCB structures due to the high cost of battery replacement. Some insurers may offer lower NCB percentages for EVs, considering potential maintenance costs.

Cost of Repairs and Availability of Spare Parts

EV bikes have fewer moving parts, which generally leads to lower maintenance costs. However, repairs can be expensive if something goes wrong due to:

• Battery Replacement Costs: EV batteries degrade over time and can be costly to replace.
• Limited Availability of Spare Parts: As EVs are still relatively new in India, obtaining replacement parts may take longer than for petrol bikes.
• Fewer Skilled Mechanics: Not all garages are equipped to handle EV repairs, which could result in higher servicing charges.

In contrast, petrol bikes have a well-established repair ecosystem, making it easier and cheaper to get parts and service.

Government Incentives and Discounts

The Indian government promotes EV adoption by offering various benefits, such as:

• Lower GST on EVs (5% compared to 28% for petrol bikes)
• Subsidies on EV purchases
• Discounted insurance premiums from select insurers

These incentives make insuring an EV bike more affordable in the long run.

Factors to Consider When Choosing an EV Insurance Policy

If you're planning to insure an EV bike, here are some important points to consider:

1. Check Battery Coverage: Ensure your policy includes protection against electrical failures and water damage.
2. Look for Green Discounts: Some insurers offer lower premiums for eco-friendly vehicles.
3. Consider Roadside Assistance: EVs can run out of charge unexpectedly, so having roadside assistance is a good idea.
4. Compare Premiums: Different insurers have varying pricing structures for EVs, so it's best to compare options before buying.

Add-ons and Customisation for EV Insurance

Since EVs have different requirements, insurance companies offer various add-ons to enhance coverage:

• Battery Warranty Extension
• Charging Station Coverage
• Consumables Cover
• Zero Depreciation Cover

Future Trends in EV Bike Insurance

As EV technology continues to evolve, the insurance industry is also adapting. Some future trends include:

• Usage-Based Insurance (UBI): Premiums based on riding behaviour and distance covered.
• Comprehensive Green Discounts: Incentives for eco-friendly practices.
• Advanced Telematics: Smart tracking for insurance customisation.

Conclusion

While EV bikes and petrol two-wheelers serve the same purpose, their insurance requirements differ significantly. From two-wheeler insurance premium calculations to coverage benefits, EV owners need to consider various aspects before selecting a policy. If you plan to switch to an EV bike, compare policies and check for additional benefits to make the most out of your coverage.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.