License and Insurance Requirements for E-Bikes: A Guide for Businesses

If you’re thinking of renting e-bikes, it’s important to make sure you’re familiar with e-bike license and insurance requirements for commercial operations in India.

As the popularity of e-bikes continues to grow, so has the number of business owners who are looking to get in on the action.

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If you’re thinking of renting e-bikes, it’s important to make sure you’re familiar with e-bike license and insurance requirements for commercial operations in India.

Does an Electric Bike Need Insurance?

As per the Motor Vehicle Act, 1988, any vehicle, irrespective of being used for commercial or private purposes, must be insured by a third-party provider.

E-bikes are no exception.

They have inbuilt motors that optimise the speed when riding. Hence, they can go really fast. In fact, an average full-sized street-legal electric motorcycle can go as fast as 80 kilometres/hour. This speed is enough to cause serious injury and damage in the event of an accident.

That’s why it is important for e-bike riders to have insurance coverage in case of an accident. Insurance coverage will help pay for any damages caused by the e-bike and any medical expenses that may be incurred.

However, if your electric bikes have power less than 250W and cannot accelerate over 25 kilometres/hour, they are not categorised as motor vehicles and, therefore, don’t require insurance.

So, do you need a license for an E-bike?

It is confounding for people when it comes to getting a license for an electric bike. However, the Indian Government has clearly stated that all electric motorcycles, including commercial motorised EV scooters, motor-driven cycles, and mopeds with brakes with pedals, among others, require a license.

In general, any bike with an electric motor that has the capability of reaching speeds greater than 48 kilometres/hour requires a license. This includes both off-road and on-road vehicles.

Types of License for E-Bikes

There are two types of licenses that can be obtained for electric bikes in India:

M1 License: An M1 license allows you to operate any electric vehicle with more than 150cc of horsepower. This includes full-fledged electric bikes, electric scooters, and electric mopeds.

M2 License: An M2 license is less common and is only required for electric vehicles like mopeds or motorised bicycles that have speeds less than 48 kilometres/hour. If the top speed of your e-bike exceeds the required speed limit, then you will need to obtain a Class M1 license.

Riders need to complete the basic motorcycle rider course to apply for electric bike insurance. This includes a vision test, a written test, and an understanding of the traffic rules.

In case the rider is below 18 years of age, he/she must pass a driving test before obtaining the license.

Things to Consider when Buying an E-Bike

Now that you know the e-bike license and insurance requirements, here are a few things to keep in mind when purchasing e-bikes for business:

  1. The power output of the motor: The power output will determine how fast the bike can go and how much torque it can generate.
  2. The weight of the bike: The weight of the bike will affect its performance, especially when climbing hills. A heavier bike will require more power to ride, so make sure to take this into account when choosing an e-bike.
  3. The type of battery: There are two main types of batteries used in electric bikes: lead-acid and lithium-ion. Lead-acid batteries are cheaper but have a shorter life span, while lithium-ion batteries are more expensive but last longer.
  4. The range of the bike: The range is the maximum distance that the bike can travel on a single charge. This is an important consideration if you plan on using the e-bike for rental purposes or long-distance travel.

With the need for cost-efficient and environmentally friendly modes of transportation surging at a phenomenal rate, businesses need to accommodate e-bikes.

By understanding the insurance and licensing requirements for e-bikes, businesses can make sure they are in compliance with the law at all times.

For customisable, flexible, and integrated HRMS syste, employee insurance and e-bike solutions contact BetterPlace.

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