The Insurance Regulatory and Development Authority of India (IRDAI) has made third-party insurance mandatory for battery operated rickshaws that do not exceed 4,000 watts. The apex insurance body has indicated that e-rickshaws that carry up to six passengers would have to pay a premium of Rs 1066 plus other charges per annum. In addition, some concessions have been given to battery operated three-wheelers to ensure the fast compliance.
As reported by The Economic Times, Mr. Mukesh Kumar, Executive Director, HDFC Ergo General Insurance, said, “Increase in number of vehicles would mean increase in road accidents, prompting a need of third-party insurance."
Currently, about 1 lakh battery operated three-wheelers are running on roads. As per the industry estimates, the penetration of third-party motor insurance in three-wheelers is much better than two-wheelers. Over 80% of regular three wheelers in India hold motor insurance policies, while in cities such as Chennai, more than 60% of two-wheelers do not have any insurance, even the third-party insurance which is mandatory to ply the vehicle on Indian roads.