Do You Need To Compulsorily Buy Two-Wheeler Insurance From Your Vehicle Dealer?

In a country like India, buying a two-wheeler may be considered to be an investment, especially for middle-class families. The rising cost of fuel, raw materials and increase in taxes may at time make the experience of buying a two-wheeler slightly pricey. But due to its low maintenance cost, better mileage, and easy handling, it can be one of the most preferred means of transport. And when it comes to the amount you plan to spend purchasing your dream bike/scooter, do not forget to consider two wheeler insurance. When buying the bike/scooter, the dealership will offer you the policy as a combined package. Should you purchase the policy from the dealership? Is it mandatory? Keep reading to get a better understanding.  

Purchasing Policy From Your Two-Wheeler Dealer?

You may have noticed that people often buy bike insurance at the same time they purchase their two-wheeler. It is a very common practice for showrooms and dealerships to sell the policy as a bundle, along with the bike/scooter they are selling. They have a tie-up with certain insurers, who sell the policy directly to the customer on the spot. This offers an incentive to both the sales staff and the agents. If you are confused about whether you should purchase the policy from your two-wheeler seller or not, go through the pros and cons of this transaction:

Pros-

•         Time-saving

The biggest pro of purchasing your policy when buying your Two-Wheeler is that the process saves your time. You are saved from the hassles of submitting multiple copies of documents. The information that you provide at the time of purchasing the bike/scooter is also used for the policy.

•         Money-saving

Buying your policy from your bike/scooter dealer can prove to be advantageous as it can provide you with savings on the cost of the policy. To provide an incentive to the buyers, showrooms and dealerships offer the policy at a lower rate than its original price. This can be beneficial if you are looking to purchase a multi-year policy.

•         Claims assistance^

Your dealership can act like a point of contact (POC) if you wish to file a claim. Most dealerships and showrooms have a long-term association with certain insurance companies. This can help you if you need assistance in filing a claim and need to reach out to the insurer without a longer waiting period. ^Claims are subject to terms and conditions set forth under motor insurance policy.  

Cons-

•         Hidden charges

As mentioned earlier, the dealership will offer the policy at a lower rate. However, since you are purchasing the policy from an agent, you are required to pay commission for their services. Along with commission, there could be hidden charges, such as the cost of added features which you do not require. This can escalate the cost of your policy in the future

•         Limited options of policies

Another con that generally gets overlooked is that the dealership might offer you limited options when it comes to the policy. For example, if you wish to look for a standalone own damage policy, but the dealer is offering only comprehensive policy, you might be forced to purchase that policy. This means having to pay extra than what you intended to.

•         Lack of customisation

Purchasing the policy from your bike/scooter dealer means you do not get to customise the policy as per your requirements. Most of these policies are pre-packaged, i.e., come with fixed features that cannot be changed at the time of purchase. So, you may get additional features which you do not require, or you may get lesser features than what you expected.  

Is It Mandatory To Purchase The Policy From The Dealer?

The answer is no. It is not at all mandatory for you as a buyer to buy the policy only from your Two-wheeler dealer. You are free to reject their offer and purchase the policy by yourself. Buying the policy on your own allows you to compare different policies, customise the policy as per your choice, and pay only for what you need, without any additional charges. When you buy the policy online, you have the convenience factor as well which allows you to purchase the policy from any device and any time you want.  

Is Bike Insurance Mandatory?

People riding a bike/scooter without owning a policy get fined heavily for the violation. This raises the question: Why bike insurance is mandatory in India ? Under the Motor Vehicles Act, 1988, every two-wheeler owner needs to have at least third-party insurance for your bike/scooter. The reason for the policy being mandatory might be due to the need to ensure the person/s affected in an accident gets compensated properly for the damages/injuries caused by the perpetrator.^ ^Claims are subject to terms and conditions set forth under Motor insurance policy. If you are found to be riding your two-wheeler without an insurance policy, you get a challan for the violation. If the fine is not paid, it could cause complications for you in the future. If you get a challan, here’s how you can proceed to check bike fine online :

1. Visit the e-challan website managed by the Mumbai RTO
2. Select the ‘Check Challan Status’ option
3. Enter your vehicle’s registration number and number of the challan generated
4. Submit these details to see the information related to your challan

 

Conclusion

As you can see, it is not mandatory for you to purchase your two-wheeler insurance from your bike dealer. It would benefit you to do your own research, and compare different insurers before you purchase a policy.   *Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.