Is It Mandatory to Buy Two-wheeler Insurance from Bike Dealers
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When you buy a bike, you are likely to be offered bike insurance by the same dealer. You might think that it is mandatory; however, the fact is that it is not. Keep on reading to know why.
Importance of two-wheeler insurance
As you buy the bike of your dreams, you need to buy a third-party bike insurance policy. In case, your bike hits a vehicle, the insurance will cover the repair charges of the vehicle, and you will be free from the burden of bearing the repair cost. If you buy an own damage insurance policy, it will bear the cost of repair of your bike.
Why it is not mandatory to buy a bike insurance policy from the dealer?
As per the Competition Commission of India (CCI), it is not at all mandatory for a buyer to purchase a two-wheeler insurance policy from the same dealer. The dealers usually offer bundled bike insurance policies instead of any kind of cash discount on the two-wheeler. However, you can reject the two-wheeler insurance policy offered by them and buy it from some other insurance provider. You need to know that the two-wheeler insurance policy offered by the dealers never comes free of cost.
Top two-wheeler companies in India
| Two-wheeler Insurance Companies | Third-Party Cover | Personal Accidental Cover | Policy Term | Incurred Claim Ratio | Network Garages | No Claim Bonus |
| Bajaj Allianz Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 62% | Available | Available |
| Bharti AXA Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 75% | Available | Available |
| Digit Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 76% | Available | Available |
| Edelweiss Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 145% | Available | Available |
| IFFCO Tokio Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 87% | Available | Available |
| Kotak Mahindra Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 74% | Available | Available |
| Liberty Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 70% | Available | Available |
| National Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 127.50% | Available | Available |
| New India Assurance Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 87.54% | Available | Available |
| Navi Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 29% | Available | Available |
| Oriental Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 112.60% | Available | Available |
| Reliance Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 85% | Available | Available |
| SBI Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 87% | Available | Available |
| Shriram Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 69% | Available | Available |
| TATA AIG Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 70% | Available | Available |
| United India Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 120.79% | Available | Available |
| Universal Sompo Two Wheeler Insurance | Available | INR 15 Lakh | 1 Year | 76% | Available | Available |
Advantages of buying a two-wheeler insurance policy from a dealer
There are quite many benefits to buying a two-wheeler insurance policy from an automobile dealer. And they are mentioned herein below:
- You do not have to spare time to do your research. Your bike dealer will do it instead for you
- You may get discounts on the bike insurance policy as the automobile dealers get incentives on each insurance policy they sell
- If you have to claim your two-wheeler insurance, you may get assistance from your automobile dealership.
Disadvantages of buying a two-wheeler insurance policy from a dealer
If you are reconsidering purchasing your two-wheeler insurance policy from a dealer, then here are some points to justify your thoughts.
- In some cases, your bike dealer might charge you more for an insurance policy that you may get at a lower price from somewhere else
- If you could do some research, maybe you would be able to choose from varied options. And as you do your research, you can look for a lot of features in your two-wheeler insurance policy
- Some dealerships assume that the customer will not go through the terms and conditions and may try to include riders or add-ons that you may not even be aware of. You can keep yourself away from such scenarios when you are buying your bike insurance policy from somewhere else.
Things to consider while buying a two-wheeler insurance policy
As you plan to purchase a two-wheeler insurance policy, keeping a few things in mind can be of great help. Here are some of them.
- According to the Competition Act 2022, it was declared by the CCI that purchasing a bike insurance policy from a dealer is not important
- If the bike dealer tries to convince you that you will get the insurance policy free of cost, you need to know that free insurance does not exist. You will be charged some amount for this
- You can go for a bike insurance check online before buying a two-wheeler insurance policy from the dealer. You may come across several options in the market.
There are three types of bike insurance available in India, such as Third-Party Liability-Only Bike Insurance, Standalone Own Damage (OD) Bike Insurance, and Comprehensive Bike Insurance.
A bike insurance policy in India may cost between INR 2000 and INR 20,000. However, it completely depends on the make and model of your two-wheeler, your age, and various other factors.
The best type of two-wheeler insurance is the comprehensive type of policy and the reason is its coverage.
Yes, for a bike rider, it is very important to have a two-wheeler insurance policy, according to the Motor Vehicles Act of the Government of India. It is not only helpful for the bike owner but also the third party.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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If you are planning to buy two-wheeler insurance and are seeking answers to some frequently asked questions, look no further. Read on to know the two wheeler insurance FAQs related to bike insurance policy in this post.
Choudhary is a privately employed person in Bangalore, and he uses a car to commute to his office daily. While driving his vehicle one day, he met with an accident that resulted in major damages and rendered his car useless. Since he had a car insurance plan, he claimed total loss and that helped him manage expenses without causing any financial burden on him.
Buying two-wheeler insurance online can be a bit overwhelming for first-time buyers and even for policyholders with prior experience. While it is recommended to compare insurance plans before buying them, having some basic understanding will help you extract the most out of them.
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