Pedal Cycle and E-Cycle Insurance


2018-05-09 00:00:00 UTC

bicycle and e-cycle insurance


As traffic hits alarming levels in cities, and health awareness increases, india is seeing a rise in the usage of cycles in cities. Bicycles have always been a popular exercise and recreation medium in urban India, but this increase rise in usage has led to some innovation in the sector, and led to the rise of electric bicycles.

Electric bicycles are essentially cycles with a battery powered motor attached. This motor’s primary purpose is to help pedalling, allowing the cycle to go faster without heavy effort pedalling.

Usually these cycles top out at 30kmph, but this may vary according to make and model.

Because an electric cycle requires a significant investment(as of this writing there are models available starting from INR 15000, and usually at INR 30000), there is a significant financial risk in case of theft or damage. To address this need, we at Perilwise approached insurers to tailor make a cycle insurance product.

Now, cycle insurance can be treated largely the same as motor insurance, but there are tweaks that can be made. Broadly speaking, a cycle insurance policy protects against 'Accidental damage to the e-cycle', ‘Liability for third-party(TP liability)' and 'Personal accident'.

Benefits


Like a motor policy, the cycle or e-cycle insurance policy is split into 3 sections.

Section 1: Own Damage

This section covers damage to the cycle or e-cycle

  • by fire, explosion, self-ignition or lightning;
  • by burglary, housebreaking or theft;
  • by riot and strike;
  • by earthquake (fire and shock damage);
  • by floods, storms, hail, frost, etc;
  • by accidental external means;
  • by malicious acts;
  • by terrorist activity;
  • whilst in transit by road, rail, inland- waterway, lift, elevator or air;
  • by landslide or rockslide.

This is a comprehensive cover that protects your e-cycle from all manner of damage that can be done to it

Section 2: Liability for third-party (Optional)

This section covers you from any legal liability you may incur for any damage you cause to third party while using the cycle. For example, if you run over a pedestrian by accident, or damage a street vendor’s cart, you are legally liable to pay.

Motor Third Party Liability, known as TP liability, is compulsory for all motor vehicles in india, but e-cycles don’t fall under that purview. With time, regulations may catch up, and so while this section is optional, we recommend that you take it.

TP cover benefits include:

  • Accidental death / injury to any third party – INR 1,00,000
  • Any damage to property owned by third party - INR 5,000/-
Section 3: Personal Accident Cover:

This section provides a personal accident cover for the owner-driver of the e-cycle. This cover only applies to the person who is named on the policy. If you buy an e-cycle for someone else, make sure to include driver’s name.

Personal accident Capital Sum Insured: INR 1,00,000

  1. 100% of CSI for Death, Loss of Two Limbs or sight of both eyes or one limb and sight of one eye.
  2. 50% of CSI for Loss of one Limb or sight of one eye.
  3. 100% for Permanent Total Disablement from injuries other than named above.

Other general terms

  • Cover applies to india only.
  • The policyholder must bear 0.5% of the claim, subject to a minimum of INR 2500 for each and every claim. This is known as the excess or compulsory deductible.
  • The Insured Declared Value(IDV) of the vehicle will be 95% of the invoice value. This means the sum insured of the e-cycle is 95% of the invoice value.
  • The Pedal Cycles / e-Bicycle should be securely locked when left unattended.

Exclusions


The following are excluded:

  • Consequential loss – any loss because of driving an already damaged e-cycle, or as a consequence to any other loss.
  • Depreciation, wear and tear, mechanical or electrical breakdown failures or breakages are not covered. Any damage that happens during normal use.
  • Damage to Tyres and Tubes unless the vehicle insured is damaged at the same time in which case the liability of the company shall be subject to a deduction for depreciation.
  • Partial theft of accessories is not covered. Insurance only pays out if theft or burglary happens to the whole cycle.
  • Any accident or incident that happens while driving under the influence of drugs or alcohol is excluded from cover.
  • The policy is not valid if the cycle is used for the following purposes:
    • Hire or reward,
    • Carriage of goods other than personal luggage,
    • organised racing,
    • Pace making and Speed testing,
    • Reliability Trials,
    • Any purpose in connection with Motor Trade.
  • Policy is not valid outside india.

Claims procedure


In case of claim, you can contact us, and we will help you out.

Please keep the following details handy while intimating a claim

  • Policy Number
  • FIR for Theft, Burglary and TP claims.
  • Repair estimate
  • Original invoice

pedal and e-cycle insurance infographic