Is Two-Wheeler Insurance Mandatory For Electric Scooters

by Kotak General Insurance Insurance Consultant

Electric scooters are not just a product of innovation but an attempt to normalize an eco-friendly lifestyle. Given the number of benefits, e-scooters offer, soon they will be ubiquitous across the world. Sure, there is a long way to go, but the automobile industry has set off on the right track.

An electric scooter or vehicle is an automobile that functions on one or more electric motors instead of a combustion engine. The motors use energy stored in batteries. Electric scooters are either partially or wholly powered by electricity.

In India, we have seen a gradually growing market for electric vehicles. With the increase in awareness and the development of infrastructure, electric scooters will soon become ubiquitous. While people are gaining more knowledge about electric scooters, one question that still remains controversial is whether electric scooter owners should buy two-wheeler insurance. Ideally, they should.

But is it mandatory to have two-wheeler insurance for electric scooters?

The Motor Vehicle Act of 1988 makes it compulsory for every two-wheeler owner to at least have third-party insurance. As of now, this law is valid for motor vehicles, but since, electric scooters run on electric motor and battery power, it is not valid for them. The government is still in the adoption phase hence, there are no specified guidelines for e-scooters as such yet.

If you are an electric scooter owner, you don’t even need a license to ride it. In fact, some of these scooters do not even require registration. Whereas with respect to conventional two-wheelers, it is mandatory to get them registered, insured, and the owner must have a driving license to ride it.

Why is two-wheeler insurance not mandatory for e-scooters?

E-scooters are still fairly new. We can expect them to go through reformations and get better. As of yet, most electric scooters in India have 250-watt power and can reach speeds of up to 25kmph. This eliminates the vulnerability of speeding and brings down the risk factor of accidents by multi-fold. Since it is such a low-risk automobile, motor insurance is not mandatory.

However, there are electric scooters that are at par with conventional two-wheelers with respect to speed. They can reach up to a speed of 80-90 kmph. The rules for such types of e-scooters are different. These electric scooters need to be registered, insured by at least a third-party insurance policy, and the owner must have a valid driving license to ride them.

Even though electric scooters have gained a fair number of sales in the past couple of years, it is not enough and the roads are still dominated by conventional two-wheelers. Hence, the government has not yet released specific rules and regulations regarding 2-wheeler insurance for e-scooters.

Just because electric scooters do not have a high speed does not mean they are at zero risk of being damaged. They are still subject to many unforeseen situations like theft, accidents, natural calamities, weather conditions, etc. Hence, you must make sure to buy a comprehensive insurance policy for your electric scooter.

Advantages of purchasing a two-wheeler insurance policy for e-scooters

Extensive protection

With a comprehensive insurance policy, you get optimum cover for the damage caused to your electric scooter under circumstances like accidents, man-made damage, theft, total damage, etc. This is one of the most basic and well-rounded insurance policies that you can buy for your two-wheeler.

Financial security

Even though electric scooters are considered low-risk vehicles, they can face damages and when that happens, motor insurance will provide you with the financial backup. Electric scooters are expensive, and hence, the repair expenses may cost you a fortune. But with a motor insurance policy, these costs will get compensated by your insurer, and you will have to put down zero or a negligible amount of money for the same. You would only be liable for certain mandatary charges. But besides that, you can enjoy financial freedom and mental peace if you have insurance for your electric scooter.

Third-party cover

Third-party liability is a part of a comprehensive insurance policy. So, you do not need to buy it separately. In the event of any third-party damage, your insurance will compensate for the same.

Trouble can arrive without warning, and no matter how safely you ride, there are many inevitable situations that can only be handled well with a two-wheeler insurance policy. Hence, even though it is not mandatory by law, you should definitely invest in an insurance plan for your electric scooter.

For more information, visit the Kotak General Insurance website