Is It Mandatory to Buy Bike Insurance from Bike Dealers?

Is It Mandatory to Buy Bike Insurance from a Bike Dealer?

No, it is not mandatory to buy bike insurance from a bike dealer. The law requires every two-wheeler owner to have at least valid third-party bike insurance to legally ride the bike on public roads. However, there is no requirement to purchase two-wheeler insurance from the dealer.

You can buy bike insurance from any insurer or online insurance platform of your choice. If a dealer offers you an insurance policy along with your new bike, you can compare it with other available policies before deciding.

For a new two-wheeler, the applicable long-term third-party bike insurance requirement must be met. However, you are free to choose where to purchase the policy. Buying insurance directly from the dealer may be convenient, but comparing policies online can give you more options to choose from.

What Does the Competition Commission of India (CCI) Say?

The Competition Commission of India (CCI) has stated that automobile dealers cannot make it compulsory for customers to purchase two-wheeler insurance from them.

As a two-wheeler buyer, you can do the following things:

• Buy bike insurance from an insurer of your choice.
• Purchase bike insurance online.
• Compare different policies before purchasing.
• Choose coverage based on your requirements and budget.

Can a Bike Dealer Force You to Buy Bike Insurance from Them?

No. A bike dealer cannot make the purchase of insurance from its preferred or tied-up insurer a compulsory condition for buying a bike.

Dealers may have tie-ups with particular bike insurance companies and may offer their policies during the vehicle purchase process. However, you can choose to purchase bike insurance separately after comparing available options.

Is Dealer-Provided Bike Insurance Really Free?

A bike insurance policy involves a premium for the coverage provided. Therefore, when a dealer offers "free insurance" with a new bike, it is important to understand how the offer is structured.

The two-wheeler insurance cost may be included in the overall vehicle purchase package or offered as a promotional benefit. Some offers may also apply only for a specific period, after which you have to pay the applicable premium at renewal.

Before accepting a free insurance offer, check the policy details, including the type of coverage, IDV, add-ons, deductibles, and policy duration. You can also compare the offered policy with other available options.

Understanding Bundled Bike Insurance for New Two-Wheelers

For new two-wheelers, insurance is commonly offered as a bundled policy that combines long-term third-party cover with own-damage cover for a shorter period. A bundled bike insurance policy typically includes:

• Long-term third-party bike insurance cover
• One-year own-damage bike insurance cover

The applicable third-party bike insurance requirement for a new two-wheeler must be fulfilled. However, the policy does not have to be purchased from the bike dealer. You can choose an insurer based on the coverage and policy terms that suit your requirements.

Bike Insurance Online vs Dealership

You can buy bike insurance either through the dealership or independently online. Both options can provide valid insurance coverage, but the choice, convenience and comparison experience can differ.

What Should You Compare Before Buying Bike Insurance?

Buying bike insurance along with your bike may be convenient, but it is still important to understand the policy before paying the premium. The cheapest policy may not always provide the coverage you need.

Consider the following factors when comparing bike insurance policies:

• Coverage: Check whether you need third-party, standalone own-damage or comprehensive bike insurance.
• Premium: Compare the premium for similar coverage across available policies.
• Insured Declared Value (IDV): If you choose own-damage cover, check the IDV offered by the insurer.
• Add-ons: Check the availability and cost of useful bike insurance add-ons such as zero depreciation, roadside assistance and engine protection, wherever applicable.
• Deductibles: Understand the bike insurance deductibles applicable to the policy.
• Exclusions: Read the policy exclusions to understand what is not covered.
• Claim process: Check how claims are registered, processed and tracked.
• Network garages: Check the availability of cashless garages if you choose a policy with own-damage cover.
• No Claim Bonus (NCB): If you already have a bike insurance policy, check whether your eligible NCB can be carried forward to your new bike.

Can You Buy Bike Insurance Online Before Registration?

Yes. You can arrange the required bike insurance before completing the vehicle registration process. You can buy bike insurance online instead of buying it through the dealership.

When buying insurance for a new bike, you may need to provide details such as the bike's make, model, variant and registration-related information. Once the policy is issued, the required insurance details can be used for the registration process.

Can You Change the Insurer After Buying Bike Insurance from a Dealer?

Yes. You can switch to another insurer when your bike insurance policy is due for renewal. You do not have to continue with the insurer selected through the dealership. Before renewal, you can compare available policies based on premium, coverage, IDV, add-ons and other policy terms.

If you have an eligible No Claim Bonus in bike insurance from your previous policy, you can also carry it forward when switching insurers, subject to the applicable terms and verification.

How to Buy Bike Insurance Online Instead of from a Dealer?

If you prefer to purchase bike insurance online from Policybazaar, you can compare and buy a policy by following these steps:

• Enter your bike's registration number or ‘Bought a New Bike’ option.
• Provide details such as the bike's make, model, variant, registration city and year.
• Enter the required personal and previous policy details, wherever applicable.
• Compare the available bike insurance plans based on premium, coverage, IDV and add-ons.
• Select the policy that meets your coverage requirements.
• Choose the required add-ons, if applicable.
• Pay the premium online and receive the policy document at your registered email or mobile number.

Things to Remember When Buying Bike Insurance from a Dealer

Before finalising your bike purchase and insurance, keep the following points in mind:

• Bike insurance is mandatory, but buying it from the dealer is not.
• You can compare policies from different insurers before purchasing.
• Make sure the required third-party bike insurance coverage is in place for your new bike.
• Compare comprehensive or own-damage bike insurance coverage if you want protection for your own bike.
• Check the IDV, premium, deductibles, exclusions and available add-ons.
• If you already have a bike and an eligible NCB, ask the insurer about carrying it forward to your new bike.
• Do not decide based only on a "free insurance" offer. Check the actual policy coverage and terms.
• Keep a copy of the policy document and verify that the bike details are correct.

What’s Next?

It is not mandatory to buy bike insurance from a bike dealer. While dealers may offer two-wheeler insurance as part of the bike-buying process, you can choose to purchase your policy from another insurer or through an online insurance platform. The important requirement is to have the legally required bike insurance coverage, not to purchase it from a particular dealer. Comparing bike insurance policies before buying can help you evaluate the premium, coverage, IDV, add-ons and other policy terms. This allows you to choose bike insurance that suits your coverage requirements and budget.

FAQs - Is It Mandatory to Buy Bike Insurance from Bike Dealers?