The Reasons For Accident Claim Denial
Updated On Mar 29, 2022
Bike insurance is purchased to fulfill legal requirements and to provide financial support for unforeseen expenditures in the event of a mishap or accident.
Table of Contents
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.
Reasons for Rejection of a Two-Wheeler Insurance Claim
The following are the most common reasons for two-wheeler insurance claims being denied by an insurance company:
1. Insurance Coverage That Has Expired
Any claim requests made against an expired bike insurance coverage are turned down by the insurance companies. They only protect for the duration of the policy. As a result, it is strongly advised that you renew your insurance plan before it expires so that you may continue to get bike insurance coverage and have a simple time filing claims.
2. False Claims
Insurance isn't a way to generate money; it's a way to protect yourself from unexpected costs. As a result, its services and benefits must not be abused to file false insurance claims. Before resolving insurance claims, insurance companies perform an extensive investigation to ensure that the request is genuine. If a policyholder is proven to have lodged a false claim, he or she will be subjected to legal action in addition to the cancellation of the claim request.
3. 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 claim 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.
4. Illegal acts
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.
5. Usage for Profit
There are distinct plans available for private two-wheelers and business vehicles when it comes to two-wheeler insurance policies. As a result, commercial use of a personal two-wheeler is prohibited. 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.
It is not enough to have insurance coverage to be compensated for expenditures spent due to an accident or disaster involving a motorcycle or scooter. Policyholders should read their policy documentation carefully to understand how to file a claim and what exclusions apply. To make things easier for you, we've put up a list of common reasons why your claim can be denied. We hope that looking through the suggestions above will assist you in following the proper procedures for avoiding bike insurance claim denials.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.