Yes - dip error certainly exists but seems to feature more prominently on light aircraft installations.
If you are flying a hold, for example, the amount of "lead" when on the inbound turn when turning through a heading which is at 60 degrees to the axis is 7 degrees (assuming negligible wind effect). On may light aircraft the 7 degree lead is cancelled out by "dip error" so if when you turn through said heading the RBI shows a relative bearing of +/- 60 degrees then the turn should connect up. If you have the luxury of an RMI then the desired inbound track would be displayed.