More electrically powered transporters will be covered by motor insurance

The legal reform set to take effect in June will make motor insurance mandatory for some electrically powered transporters. In future, all motorised transporters exceeding 25 kilograms in weight or 25 kilometres per hour in speed must be insured. Only electrically assisted bicycles (e-bikes) are subject to partially different criteria with regard to the insurance obligation.  

More electrically powered transporters will be included in the obligation to obtain motor insurance. Among others, the obligation to insure will apply to e-scooters – favoured by food couriers and young people – senior mobility scooters, and children’s electric vehicles, which were previously exempt from the insurance obligation. The important number to remember is “25”. Insurance is mandatory for devices that exceed 25 kilograms in weight or 25 kilometres per hour in speed.  

“Nearly all electric scooters sold to consumers in Finland will be under the legal limits, according to our information. They will remain uninsured. Both weight and design speed are indicated in product information,” says Insurance Manager Lauri Linnaof the Finnish Motor Insurers’ Centre LVK. 

E-bikes are an exception to the easy rule of 25. The insurance obligation excludes any e-bikes that also require pedalling to move and turn off motor assistance above speeds of 25 kilometres per hour. The maximum output of the motor is also limited to 250 watts. For all other e-bikes, the obligation to insure is determined the same way as other electrically powered transporters: insurance is mandatory if weight exceeds 25 kilograms or motorised speed exceeds 25 kilometres per hour. 

Motor insurance provides extensive coverage for damages. It compensates others for their personal injuries and property damage. In Finland, the insurance of the driver who caused the accident also covers the driver’s personal injuries.  

“The insurance obligation is the same regardless of where one uses their transporter. Accidents may occur off the road, so it’s important to always have insurance whenever we’re driving or riding,” says Linna.

Rental e-scooters receive stricter rules and less coverage 

Rental companies are responsible for the majority of e-scooter traffic. These companies are subject to an extended obligation to insure that applies to all e-scooters regardless of weight.  

The personal injury compensation of rental e-scooter riders has been limited to the cost of treatment only. In their case, motor insurance does not cover the loss income or need for rehabilitation resulting from a serious injury, for example. 

“With e-scooters, most personal injuries are suffered by the user, and the limited driver coverage reduces the compensation available for their injuries. The purpose of the law is to curb the rising of costs brought on by rental e-scooters,” says Director General Janne Jumppanen of the Finnish Motor Insurers’ Centre. 

Motor insurance is available from insurance companies. Because the content of a motor insurance policy is defined by law, the coverage is identical regardless of the insurance provider. Parties injured in an accident may claim compensation directly from the insurance provider of the person who cause the accident.  Motor insurance is not available for devices that are exempt from the insurance obligation, but voluntary liability and accident insurance policies are available. 

The reformed Motor Insurance Act should enter into force on 1 June 2024. The legal reform is based on the national implementation of Directive (EU) 2021/2118 (“Motor Insurance Directive”). By law, insurance is required for motorised vehicles that weigh in excess of 25 kilograms or whose design speed exceeds 25 kilometres per hour. The “design speed” of a device is the speed specified for it by the manufacturer or importer.