Is it mandatory to buy bike insurance from bike dealers?
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There is no better feeling than getting a bike from the money earned after a lot of struggling. In addition, getting a fair deal only increases happiness. There are high chances that on bargaining properly one can get a bike insurance policy for an even more discounted price. In India, dealers often provide bundled up insurance policies as opposed to providing cash discounts.
The question that arises here is:
“Is it mandatory to buy bike insurance from a bike dealer?”
Well, there is no such rule that one has to buy their bike insurance from an automobile dealer only. According to the Competition Commission of India (CCI), nobody is compelled to buy a bike insurance policy from the dealership itself.
Under the Competition Act 2022, the CCI was formed to overlook the automobile dealerships to ensure that any kind of malpractices that may result in benefiting the competition is prevented. In addition, the CCI is also responsible for promoting and sustaining competition within the industry which will help in protecting the consumer’s interest by offering them numerous choices.
Can Motor Insurance Be Bought For Free From A Dealer?
A bike insurance policy can never be free as every policyholder has to pay a minimum sum of money as a premium to the insurance company. When one gets a motor insurance policy from an automobile dealer, a non-discounted price for the premium is offered to the consumers. In some cases, the consumers are found paying a lot more than they are supposed to pay given their insurance plan that is purchased. When you are told that the bike insurance is free then they generally mean that it is free for a year and one is liable to pay the premium amount from the next year.
What Deal Goes On Between The General Insurance Companies And The Automobile Dealers?
The bike dealers enter into a deal with the in-house insurance company or with any external insurance provider to give you, the insured, an insurance policy as part of the sales package. These insurance companies are often given a huge amount as commission to the bike dealers. In addition, it is not even informed to the owners that their NCB can be transferred easily from their previous insurance company to the new one without much hustle.
Things to Remember When Buying a New Bike
There are certain factors that need to be kept in mind when buying a new bike from a dealer. They are:
- According to Competition Act 2022, the CCI has made it clear that buying an insurance policy from the dealer is not mandatory.
- As a buyer, you are allowed to look for discounts in the form of cash and also accept offers for free bike insurance coverage by the dealership. Although there is nothing called ‘free bike insurance coverage’ and the premium amount is already included in the payment to be made.
- Before a deal is finalized, one must explore the options that are available in the market. One can do this with some simple steps like comparing different policies online and getting the best insurance policy in the end.
- In order to compare these policies one can head to the official page of gintejainsurance.com and view the different policies that are available in the market.
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