Top Reasons for Two Wheeler Insurance Claim Rejection
Updated On Oct 23, 2020
Know Top Reasons Why Two Wheeler Insurance Claims Are Denied
You spend a lot of money on buying a two-wheeler. Keeping it secured is hence important. This is where insurance comes to aid. By paying the premiums, you can get financial assistance from the insurer when your two-wheeler meets any accident. You have to register a claim and follow the instructions of your insurer. However, sometimes insurance companies can reject your claims and deny to provide any coverage for that mishap.
Why Does A Claim Get Rejected?
When you make a claim under your insurance policy, the insurer verifies your claim. Only if your claim passes the verification, you will receive the sum assured. Here are some circumstances under which your two-wheeler insurance claim can get rejected:
Lack Of Updated Information
The insurance company must have up-to-date information about the policyholder, the insured two-wheeler and the accident that took place. If your insurer is not given detailed and genuine information, it can reject your claim for misrepresentation of facts. The same can affect the policy rate.
If you have committed any offence, your insurance claim will get rejected. Drunk driving, talking on the phone while driving, driving without a driving licence or with an expired one can lead to claim rejection. If the insured’s two-wheeler is used for any illegal purposes at the time of the accident, the insurer will not entertain any claim.
Driving Without Valid License
A very common reason for rejecting insurance claims is riding without a license. If you did not have a valid license or if anyone else without a valid driving license was driving the two-wheeler during the accident, you will become ineligible for coverage under any insurance cover.
Failure In Renewal Of Insurance Policy
To avail the benefits of an insurance cover, you need to renew the policy timely. Once the policy expires, you and your two-wheeler are no longer covered under the insurance policy. If your policy had expired at the time of encountering an accident, the insurance company will not be liable to provide you with any coverage.
Fraudulent insurance claims result in the rejection of the claim and makes you subject to legal charges as well. Your claim goes through proper verification. If you are found guilty of making a claim higher than you deserve or if you have made a claim for a fake incident, your claim will be rejected.
Misinterpretation Of Claim Coverage
You get only the coverage of the policy you pay for. If you have a third party policy, you can claim for third party compensation only. Any claim for own damage will be invalid. Similarly, the insurer will cover only the add-on coverages you have opted along with your policy.
Defective Vehicle Parts
Condition of the two-wheeler is taken under consideration during claim settlement. If your vehicle has faulty parts such as defective tyre, loose brakes, etc. your insurance claim can get rejected. Also, insurers reject claims if your two-wheeler is not serviced as per the service intervals mentioned by the manufacturer.
Now that you are aware of all the situations in which your insurance claim can be rejected, make sure that you fulfil all the stipulations. Abide by the rules of your insurer to avail the benefits of the two-wheeler insurance cover and to ensure a smooth claim settlement process.
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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.