Is It Mandatory to Buy Two-wheeler Insurance from Bike Dealers?

  • Author :
  • TATA AIG Team
  • Published on :
  • 26/09/2023

Getting your bike insured is always a good idea. Legally mandatory, as a matter of fact. However, is it necessary to get your two-wheeler insurance from the dealers? Or is it better to get it from an established company that will ensure you get the coverage required to fit you?

You should also note that bike dealers aren't legally obligated to sell insurance for the bikes they sell. Therefore, exploring all available options is always better before settling on a specific two-wheeler insurance plan.

Where To Purchase Your Bike Insurance Plan? - Dealer Vs. Insurance Company

**Getting Your Bike Insurance From The Dealers **

When you choose to get your bike insurance from the dealer, the price and features offered will depend on age, usage, type of bike owned, etc. You must have at least a third-party insurance cover from any insurance provider. What's important to note here is that buying your dealer's bike insurance is not compulsory.

Some benefit of getting insurance for your bike from the dealers is that you get valid insurance soon after purchasing a new two-wheeler. In addition, your bike dealer can help you choose an insurance policy best suited for your needs. However, you should always consult your dealer before buying the insurance policy because the cost will vary depending on several factors, as stated above.

Another benefit of getting two-wheeler insurance from the dealers is that it will give the IDV (Insured Declared Value). It refers to your bike's current market value and the amount you will receive from your insurer if your motorcycle is stolen. The IDV helps calculate the total amount you will pay for your insurance premiums.

Purchasing Bike Insurance From Insurance Companies

The need for bike insurance is steadily increasing with the number of people buying two-wheelers. As a result, many bike owners look for reputable insurance companies that provide third-party insurance plans and comprehensive plans for their two-wheelers.

Generally, insurance companies offer three types of two-wheeler insurance plans:

  • Third-Party Insurance Bike Insurance Policy

  • Comprehensive Bike Insurance Policy

  • Standalone Own Damage Bike Insurance Policy

Third-Party Insurance Bike Insurance Policy

The Motor Vehicles Act of India legally mandates that people have at least a third-party insurance cover. This plan covers costs related to damages caused to the third-party individual's two-wheeler or the person in the event of an accident. However, this policy doesn't cover any costs related to the damage inflicted on your bike.

This policy offers financial coverage even in the event of the death of a third-party individual in an accident caused by the insured bike. It also covers the cost of any legal liabilities associated with damages caused to the third party.

For your understanding:

The First Party: The owner/driver of the bike is the first party.

The Second Party: The insurance provider is the second party.

The Third Party: Any person or property that is not the first or second party is considered the third party.

Comprehensive Bike Insurance Policy

Comprehensive bike insurance policies offer all-around coverage to the bike owner and the third party in the event of an accident. Any new bike owner can opt for this insurance plan. If you already own a plan, it can be upgraded to a comprehensive one.

In addition to providing more coverage, comprehensive bike insurance owners can purchase add-ons to get additional coverage to protect against specific damages. Another benefit of this insurance plan is that it offers a Personal Accident Cover that covers medical expenses in case of injuries or even death during an accident. This policy provides a worry-free plan that ensures complete coverage.

Standalone Own Damage Bike Insurance Policy

This two-wheeler insurance policy covers the cost of damages caused to your bike during an accident or any other unfortunate event. This policy, however, does not cover any of the damage caused to the third-party individual or their vehicle.

This plan is beneficial if you want to protect your bike against natural or man-made disasters and offers reimbursement if your bike gets stolen.

Bike Insurance Plans From Dealers Vs. Bike Insurance From Insurance Companies

There are several factors to consider when buying bike insurance from any party - dealer or insurance company.

Here are some to keep in mind:

Affordability

Many people may be unaware of this, but bike insurance bought from dealers can sometimes cost more. This is because the dealer gets paid a commission. This means you could be paying more for the same type of insurance plan offered for a lower price at an insurance company.

Some dealerships may include add-ons to the insurance plan without the customer's knowledge. Most do not read the fine print in the terms and conditions. So dealers can often hike the prices of the insurance plans they offer.

Convenience

The main reason why a lot of people choose to purchase their bike insurance from dealers is the convenience factor. Depending on your bike's features, the dealer can select insurance plans that suit you best.

Dealers can best explain all the available features provided under the policy. They will also assist you with the registration and claims process. You won't need to research, as the dealer handles everything.

However, there are better approaches than this. Regardless of where you buy your two-wheeler insurance, thoroughly researching all available plans is always essential.

Number/Types Of Plans Available

The number and types of insurance plans offered at the dealer can be limited. This is because it depends entirely on the firms they are partnered with. In this case, exploring more options online is better than settling for a plan you aren't pleased with.

Conclusion

As you can see, two-wheeler insurance plans offered by dealers and insurance companies have pros and cons. It is up to you to decide which plan is best for you. One way to narrow your choice is by buying your bike insurance online.

Tata AIG's long term two-wheeler insurance plans can be purchased online and offline, and we offer flexible payment plans. This way, you get to experience the full scope of benefits your insurance plan provides at an affordable price.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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