Is Paperwork Required When Buying a Bike?

Have you decided on a bike that you want to buy? If the answer is yes, the wait to get your hands on your dream bike is close. However, before you can take the delivery of your bike, there are a few documents that you must ensure are available. These documents will be needed for bike registration as well as financing if you are opting for it.

List of documents for a new bike

A crucial step of owning a bike is to register it in your name. The law mandates that all bikes are registered in the name of the owner at the nearest RTO. This ensures that the bike is registered to genuine buyers. The process also makes certain that a central database is available with the data of all vehicles.

Documents needed for buying a vehicle from a two-wheeler dealer

The process of buying a new bike requires you to visit a dealership and take a test ride of the bike. Once you are convinced, you can pay a booking amount and the dealership will procure a bike for you. In the meanwhile, you will need to complete the documentation part of the purchase. Here are the documents that you will need for bike registration.

1. Proof of address

You can submit any documents such as your passport, utility bills, rental agreement, etc. for the address that you are currently residing in.

2. Proof of nationality

At times, bike dealerships can ask for proof of nationality. In such cases, you can submit your voter ID, Passport or Aadhar card.

3. Proof of identity

Any document that has your photograph and identity details such as a Pan card, Aadhar card, passport or driving licence can be used as proof of identity.

Documents needed for financing or loans

The sticker price of bikes has gone up a few notches over the past few years, owing to BSVI and inflation. You might want to take the help of financing options to buy the bike of your dream. Should you choose to do that, you can either opt for the financing option available at the dealership or take a loan from your preferred bank. In either case, you will need to submit a certain set of documents. Which also includes documents needed for the bike insurance plan.

1. Salaried individuals

If you are a salaried individual, here are the documents that you will need to submit.

• Proof of address

For proof of address, you can submit a copy of your passport, voter ID, rental agreement, utility bills, etc.

• Proof of income

The loan amount that you are seeking will largely depend on your income sources. You will need to submit documents such as your ITR, salary slip for the past few months, and Form 16. Depending on the lender, you might also need to submit a salary certificate.

• Proof of identity

For proof of identity, you can submit a copy of your driving licence, Pan card, Aadhar card, passport, etc.

• Statement of bank

You will also need to submit bank statements for the past year.

You must also submit passport-sized photographs, apart from the above set of documents.

2. Self-employed

The document set would vary a bit if you are self-employed. You must provide the following documents.

• Proof of identity

For proof of identity, you can submit a copy of your driving licence, Pan card, Aadhar card, passport, etc.

• Proof of address

For proof of address, you can submit a copy of your passport, voter ID, rental agreement, utility bills, etc.

• ITR

You must provide ITR or income tax returns for the past three years to the lender. This will allow them to assess your income and deductions.

• Statement of bank

Individuals must submit bank statements for the past three to six months as proof of income and other deductions.

Registration of bike

According to the laws in place, you must register a new bike within 7 days of buying it. The bike registration process takes place in the RTO and you must submit the following documents to enable it.

1. Application form or Form 20

2. Sales certificate or Form 21

3. Roadworthiness certificate or Form 22

4. Form 34 if you have financed the bike

5. Pollution under control certificate

6. Proof of address

7. Proof of address

8. Bike insurance plan

9. Affidavit if needed

The need for insurance

Before you can take your new bike out for a spin, it is essential that the bike is registered and you have valid insurance. Failing on either front will attract hefty penalties. Considering that you will invest a considerable amount of money on a new bike, it is recommended to opt for comprehensive bike insurance for the following reasons.

1. The plan has your back against natural calamities such as cyclones, landslides, earthquakes, etc. which can cause severe damage to your bike.

2. The plan offers protection against manmade calamities such as strikes, vandalism, riots, etc.

3. In the unfortunate event of an accident involving third party individuals, the plan will compensate for damages and injuries.

4. If your bike gets stolen, the plan will compensate you with the IDV or insured declared value of the bike.

5. The plan will also pay for the repair bills if your bike is involved in an accident.

Before buying a plan, you can compare two wheeler insurance to get a policy that meets your requirements and fits your budget.

Conclusion

The process of buying a bike requires a few documents to be submitted. These come in handy either for bike registration or as documentation for financing and keeping details of the owner. The above are all the documents that your dealership might ask for. Getting prepared with these will ensure that you have a smooth buying experience.

Disclaimer : The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales