Reasons Why Bike Insurance Claims Can Be Rejected
Updated On Feb 21, 2022
Reasons for denial of a two-wheeler insurance claim. To learn more about it, keep reading this article.
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Bike insurance is purchased to fulfill legal requirements and to provide financial support for unforeseen expenditures in the event of a mishap or accident. However, the obligation does not end there; for a successful claim settlement, insured individuals must take care of a variety of insurance elements. To do so, you must first comprehend the many components of bike insurance coverage that will cover your expenditures in the event of an accident. Policyholders who are unaware of the insurance policy's provisions and limitations risk having their claims denied by their insurance company.
Basic Reasons for Bike Insurance Claim Denial
The following are the most common reasons why two-wheeler insurance claims are denied by insurance companies:
Insurance Policy That Has Expired
Any claim requests filed against an expired bike insurance coverage are turned down by the insurance companies. They only provide coverage for the duration of the insurance contract. As a result, it is highly advised that you renew your insurance plan before it expires so that you may continue to receive bike insurance coverage and have a simple claim settlement process.
Claims that are not True
Insurance isn't a way to generate money; rather, it's a way to protect yourself from unexpected costs. As a result, its features and benefits must not be used in order to file false insurance claims. Before resolving insurance claims, insurance companies perform an extensive investigation to ensure that the request is legitimate. If a fake claim is discovered, the policyholder will risk legal consequences in addition to having their claim request denied.
Coverage with No Claims
Many consumers fail to read their bike insurance policy materials carefully and are ignorant of their insurance coverage. If a person has a third-party bike insurance policy, he or she cannot make a claim for own-damage charges. Additionally, if an insured individual has a comprehensive bike insurance policy but no add-on coverage, you may be responsible for certain out-of-pocket payments. In such cases, insurance claims may be denied because they were filed incorrectly.
Acts that are Illegal
When a policyholder requests a bike insurance claim from an insurance provider, it must be guaranteed that the policyholder has not engaged in any criminal activity; otherwise, the claim request may be denied, which might backfire. At the time of the accident, the insured individual must not have been caught riding a bike while under the influence of drugs or alcohol, executing any stunts, or riding a bike without a valid driver's license. In certain instances, the bike insurance provider may deny the claim or even cancel the coverage.
Use in a Business
There are distinct policies for private two-wheelers and business vehicles when it comes to two-wheeler insurance. As a result, a personal two-wheeler cannot be used for business reasons. If a private scooter or bike is destroyed in an accident or incident while being utilized as a business vehicle, the bike insurance company will immediately deny the claim.
Having insurance coverage does not guarantee that you will be compensated for expenditures linked to a motorcycle or scooter incurred as a result of an accident or disaster. Policyholders should read their policy paperwork carefully to learn about the claim procedure and the exclusions. To make things easier, we've compiled a list of common reasons why your claim can be denied. We hope that looking through the items above has helped you understand how to avoid having your bike insurance claim denied.