There is a lot of misconception around insurance products because of a lack of awareness. Often, insurance companies are blamed for cheating and rejecting bike insurance claim requests. In reality, claims are mostly rejected because the policyholder does not fulfill all the requirements for filing a claim.
Hence, it is important to read the fine print of your insurance policy carefully and understand the inclusions and exclusions of your policy well. To avoid getting your claim rejected, let us explore some common reasons for which a bike insurance claim can be rejected,
Incomplete or Inaccurate Claim Details -
If your bike is involved in an accident, provide complete and accurate details of the damage with adequate proof like photographs or a witness. Missing facts or providing wrong information may result in the rejection of your claim request.
Late Intimation of Claim -
It is advisable that you raise your claim request immediately after the accident. Keep in mind the insurer's deadline for initiating a claim to avoid rejection of your claim request.
Tip: Nowadays, a policyholder can easily file a claim online, verification is done through video calls and the policyholder gets on-the-spot claim settlement. With an online claim process two wheeler insurance, compensation can be claimed easily and instantly.
False Claims -
Insurance provides a financial cushion for an unforeseen incident. However, there are good chances that it is misused for making money. Therefore, insurance companies do thorough research and verification to authenticate a claim request. If a claim request is found fraudulent, it is rejected and the policyholder may face legal charges.
Expired Policy -
An insurance policy provides coverage only until the policy tenure. If you raise a claim against an expired policy, it will not be entertained by the insurance company.
Tip: To avoid claim rejection because of a lapsed policy, always renew your policy on time so that you get continuous coverage.
Driving without a license or drunk driving-
Driving without a license is illegal in India and may cause penalties. No insurance company will accept a claim if it is found that you were driving without a license at the time of the accident or driving under the influence of alcohol.
Tip: To avoid claim rejection or any legal consequences, always carry your license while driving and never drink and drive.
Illegal Acts -
An insurance company will reject your claim if it finds out that your bike was damaged because of an illegal act such as driving under the influence of drugs or alcohol, bike racing or stunt driving.
If you are planning to modify your bike, first inform your insurer as a modified bike may have a higher premium. If modifications are made without informing the insurer, your claim requests are most likely to get rejected in case an accident happens.
Commercial Use -
If a private bike is used for a commercial purpose, the insurance company will not accept any claim. There are separate policies covering commercial vehicles and private vehicles.
Tip: If you wish to use your private vehicle for commercial use, first register it as a commercial vehicle and then opt for the insurance accordingly, so that even if the premium is slightly more, the chances of the claim are higher.
No Coverage -
If the damage caused to your bike is not covered in your policy, your claim request will be rejected. For instance, you can not claim for ‘own damage’ under a third party liability only bike insurance plan.
Tip: Therefore, it is always advised to carefully read the policy document to understand what is included and what is not.
Repair work done without surveyor’s approval -
For insurance claims, the surveyor's approval needs to be availed before the repair work begins, both for cashless and reimbursement.
For cashless, the same is coordinated by the network garage. However, for reimbursement claim, the inspection report needs to be submitted along with the original invoice of the repair work.
Non transferred insurance policy -
This is possible for a resale condition. If the bike has been sold and the registration of the same initiated at the RTO; but the changes have not been done at the insurance company. Thus, the insurance policy would have the previous owner’s name. In such a case, the bike claim can be rejected on grounds of non-transferred policy.
Tip: Always transfer the name of your bike, or take a new one as soon as you purchase a second-hand bike.
Beyond the coverage -
A regular accident is covered under a comprehensive bike insurance plan. But if your bike is damaged due to waterlogging or theft, etc. and the specific add-on or rider hasn't been opted for, then the claim can be rejected on the grounds of outside the coverage of the vehicle.
Tip: Check your requirements and opt for all the additional riders to enhance the coverage. For example,
- If you stay in a flood-prone zone, remember to opt for Engine Protection Rider; or
- If you happen to park your vehicle on the road, opt for Return to Invoice for protection against theft; or
- Roadside Assistance Cover for new riders, etc.
Keeping the above reasons in mind, make sure that your claim is never rejected and you get your compensation without any hassle. Whether you make a bike insurance claim online or offline, provide all the documents required. These documents include FIR, registration certificate of the bike, driving license, policy document and repair invoice. Also, remember to get the surveyor inspection done, at the garage for cashless or at home for reimbursement, before the repair work begins.
Drive your bike carefully, replace any faulty parts, maintain your vehicle well and always renew your policy on time. Any default on your part may lead to rejection of the claim and loss of coverage. Comply with the terms and conditions of your policy for a smooth claim settlement process.