IRDAI Mandates Third-Party Insurance for Battery Operated Rickshaws

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.

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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.

Written By: PolicyBazaar - Updated: 12 July 2021