Is it Mandatory to Get a 5-Year Insurance Policy from a Bike Dealer?

Purchasing a bike always remains a dream for a lot of Indians but with ownership comes certain rules that are crucial to follow. As per the Insurance Regulatory and Development Authority (IRDAI) regulations, having bike insurance for 5 years is mandatory. This mandate includes a 5-year third-party plan and a 1-year own damage plan. 

The regulation came into being since many people were driving their bikes without a valid insurance policy, which led to chaos. So, keep reading to know the significance of a 5 years bike insurance policy, its types and factors that affect the premium. 

While it is mandatory to have a 5-year third-party insurance policy when buying a new two-wheeler, there is no legal obligation to purchase this policy directly from the bike dealer. Buyers have the freedom to choose their preferred insurance provider.
 

Bike dealers often offer insurance policies as part of the purchase package for convenience. However, these policies might come at a higher premium due to added commissions and limited options. Therefore, it is advisable to compare bike insurance offerings from various providers to ensure you get the best coverage at a competitive price.

Keep in mind that researching these factors ensures better value and protection.

So, if you are wondering whether to have a 5-year valid insurance policy for your new bike, the answer is yes. According to the regulation of IRDAI, it is mandatory to own a third-party insurance plan valid for 5 years along with an own damage plan valid for at least 1 year. Based on the make and model of the two-wheeler you own, the premium rates vary. It is always a smart option to compare different insurance policies, their coverage, and add-on options before making the final call.