E-rickshaw insurance is a type of policy that provides coverage for electric rickshaws in the event of any damage or loss. The policy offers protection from financial losses arising out of accidents or other mishaps.
It is important for e-rickshaw owners to understand the nuances of this type of insurance and how it works, so they can make an informed decision when choosing a policy.
What Does E-Rickshaw Insurance Cover?
E-rickshaw insurance is designed to provide financial protection for electric rickshaws in the event of any damage or loss caused by an accident, theft, fire, natural disaster, and other unforeseen circumstances.
This coverage usually includes medical expenses for both the driver and passengers, as well as legal costs in case a third party sues you due to an accident involving your e-rickshaw. It also covers repairs and replacements, as well as liability claims if you are found liable for damages caused by your vehicle.
It’s important to note that while most policies offer basic coverage such as third-party liability, personal accident cover etc. There are some insurers who offer more extensive coverage like breakdown assistance and 24/7 roadside assistance.
Additionally, some insurers also provide additional benefits such as discounts on premiums if you have installed safety features on your e-rickshaw.
How Much Does E-Rickshaw Insurance Cost?
The cost of e-rickshaw insurance depends on several factors including the age of the vehicle, its condition, the insurer’s terms & conditions etc. Generally speaking though, most policies cost between Rs 5,500 – 10,500 per annum depending on the coverage offered and other factors mentioned above.
However, it’s important to shop around for quotes from multiple insurers before making a decision so that you can get the best deal possible.
Why Should You Purchase E-Rickshaw Insurance & Types of E-Rickshaw Insurance?
Purchasing e-rickshaw insurance is a crucial step in protecting yourself as well as your business from any unforeseen circumstances. As per the Motor Vehicle Act, of 1988 you are legally required to purchase third-party e-rickshaw insurance for your vehicle.
This blog post will provide an overview of why it is important to purchase e-rickshaw insurance and how it can benefit both you and your business.
Types of E-Rickshaw Insurance?
Below are the different types of E-Rickshaw Insurance available in India:
- Third-Party Liability Coverage
- Comprehensive Insurance Plan
- Goodwill and Reputation Building
Third-Party Liability Coverage
One of the primary reasons why you should purchase e-rickshaw insurance is that it provides coverage from any third-party liability in case your e-rickshaw damages a third party’s vehicle, person, or any of their personal belongings.
This type of coverage ensures that you are not held liable for any damage caused by your vehicle, no matter how severe the incident may be. In these cases, the insurer pays out compensation on your behalf of you to cover the damages incurred.
Comprehensive Insurance Plan
It is recommended to purchase a comprehensive insurance plan because it provides coverage for own damages as well as damage caused due to natural disasters, terrorist activities, theft, fire, etc. A comprehensive plan also covers all legal costs in case there are any disputes regarding ownership or responsibility related to an accident involving your e-rickshaw.
Goodwill and Reputation Building
Purchasing e-rickshaw insurance reflects that you are responsible and think about the safety of your passengers which shows goodwill amongst customers and builds a reputation for your business. It also helps build trust between passengers and drivers since they know they are safe while being transported by someone who cares about their safety.
What to Consider When Purchasing E-Rickshaw Insurance?
As an e-rickshaw owner, you need to be well-informed about the insurance policies available in the market. While purchasing e-rickshaw insurance, there are several factors that you need to consider to make sure that you get the right coverage for the amount of premium you pay.
In this blog post, we will look at some of these factors so that you can make an informed decision when buying e-rickshaw insurance.
Insured Declared Value (IDV): The Insured Declared Value (IDV) is the maximum amount that you get as financial coverage when raising a claim. When considering an insurance policy for your e-rickshaw, inspect the IDV provided by the insurer and go for a higher IDV if it is within your budget.
Services: Check if the company provides good services when you raise a claim. If not, choose one with better services. Make sure to read through their service policies before making a purchase decision.
Claim Settlement Ratio (CSR): The Claim Settlement Ratio (CSR) indicates how many claims have been settled out of those raised in any given year. It is important to check this ratio while selecting an insurance policy as it reflects how likely your claim will be settled efficiently and effectively by the insurer if something unfortunate were to happen.
Add-Ons: Some insurers offer additional add-ons such as roadside assistance or zero depreciation cover which can provide extra coverage against specific risks not covered in a standard policy. You may want to consider these add-ons depending on your needs and preferences.
Purchasing e-rickshaw insurance can be overwhelming due to all the different options available in the market today. However, by taking into account certain factors such as the Insured Declared Value (IDV), services provided by the insurer, Claim Settlement Ratio (CSR) and add-ons offered by them, you can easily narrow down your choice and select one that suits your needs best.
Doing proper research beforehand will ensure that you have chosen an appropriate plan and have taken necessary precautions just in case something happens!
Essential Coverage for E-Rickshaw Insurance:
Below is a detailed explanation of what is covered under an e-rickshaw insurance policy.
Accidental Damage: Any kind of damage caused to the e-rickshaw in an unfortunate accident is covered under the comprehensive insurance policy. This includes collision with another vehicle or object, overturning of the e-rickshaw, and so on.
Man-Made Disasters: Any loss or damage caused to the e-rickshaw due to man-made disasters such as riots, strikes, and malicious acts is also covered. This ensures that you can be reimbursed for any damages caused by external forces outside of your control.
Natural Calamity: Damage caused due to any natural calamity such as earthquakes, floods, hurricanes, typhoons, etc is also covered by an e-rickshaw insurance policy. This gives you peace of mind knowing that even if a natural disaster were to cause severe damage to your vehicle, you would be able to get some form of financial compensation from your insurer.
Personal Accident: If the passengers of an e-rickshaw get injured or become the reason for the death of the owner or driver, personal accident cover will provide financial coverage for it. This means that if something were to happen while someone was riding in your vehicle you would not have to bear the full burden alone; instead, your insurance company could provide some form of financial compensation for those involved in the incident.
Third-Party Liability: Any kind of damage or loss caused to a third party’s property due to your e-rickshaw will also be covered under an e-rickshaw insurance policy. This ensures that should you ever accidentally cause harm or damage to another person’s property while driving your vehicle you will not have to pay large sums of money out of pocket; instead, your insurer can cover those costs for you.
Having adequate insurance coverage for your e-rickshaw is essential if you want peace of mind knowing that no matter what happens on the roads you will always be protected financially should something go wrong.
From accidents and man-made disasters to natural calamities and third-party liability – there are numerous types of coverage available which make sure that whatever happens on the roads you can rest assured knowing that you are fully protected from any potential risks associated with operating an e-rickshaw. It pays off in more ways than one!
What Is Not Covered Under E-Rickshaw Insurance?
Before you purchase an e-rickshaw insurance policy, it’s important to understand what is not covered. Knowing the exclusions associated with this type of policy can help you determine if it is suitable for your needs.
Here are some common things that are not typically covered under an e-rickshaw insurance policy.
Own Damage For Third-Party Policyholder: If you have only purchased third-party liability insurance for your e-rickshaw, any kind of damage caused will not be covered by the insurer. This means that if your vehicle is damaged in an accident, you will have to bear the cost of repair out of pocket.
Electrical or Mechanical Failure: Electrical and mechanical failures are generally excluded from e-rickshaw insurance policies. This means that if your vehicle experiences any kind of electrical or mechanical failure, the costs associated with repairing or replacing the affected parts will not be covered by the insurer.
Consequential Loss: Any consequential loss or damage caused to your e-rickshaw due to an accident is also typically excluded from coverage. This includes losses such as fire, theft, and vandalism that may occur as a result of an accident.
Driving Without License: Finally, if you are found driving your e-rickshaw without a valid driving license when the accident took place, then any costs associated with repairs or replacements will not be covered by the insurer. It is important to always carry a valid driver’s license while operating your e-rickshaw in order to remain eligible for coverage in case of an accident.
Conclusion:
E-rickshaw insurance is an ideal way to protect yourself financially against any unforeseen damages or losses caused by an accident or other misfortunes. By understanding what this type of policy covers and how much it costs, users can make an informed decision when choosing a policy that‘s right for them.
Shopping around for quotes from multiple insurers will also help ensure they get a good deal on their premium payments so they can enjoy peace of mind knowing their vehicle is covered at all times!
