Two Wheeler Insurance Claim Rejection Reasons

When anyone buys bike insurance, it is done to complete legal formalities and to gain the financial assistance for unexpected expenses in case of any mishap or accident. However, the responsibility does not end here and insured persons are required to take care of various insurance factors for a successful claim settlement. To get this, it is vital to understand the aspects of bike insurance policy that would compensate your expenses in case of any mishap. Without the information of the inclusions and exclusions of the insurance policy, policyholders can end up getting their claim rejected by their insurance companies.

Basic Reasons for Rejection of Bike Insurance Claims

Following are the major causes due to which an insurance company rejects the insurance claims for two-wheelers:

1. Expired Insurance Policy

The insurance providers do not entertain any of the claim requests which are raised against an expired bike insurance policy. They give coverage only during the insurance policy term. Hence, it is highly recommended to renew your insurance plan before it gets lapsed so you can get uninterrupted bike insurance coverage and easy claim settlement without any hassle.

2. Fraudulent Claims

Insurance is not a tool to make money, but financial assistance against unforeseen expenses. Therefore, its offerings and benefits must not be misused to raise fraudulent insurance claims. Insurance providers conduct in-depth research before settling the insurance claims to confirm the authenticity of the request. If anyone found to have made a fraudulent claim, the guilty policyholder will have to face legal punishment in addition to the cancellation of claim request.

3. No Claim Coverage

Many times, policyholders do not go through the bike insurance policy documents thoroughly and stay unaware of their insurance plan coverage. For insurance, if someone holds a third party bike insurance plan, then he or she can not claim for own-damage expenses. Also, if an insured person holds a comprehensive bike insurance policy but without add-on covers, then there could be some expenses that you may have to bear out of your pocket. In such situations, the insurance claims can get rejected for making the wrong claim.

4. Unlawful Acts

When someone requests a bike insurance claim from an insurance company, it needs to be assured that the policyholder must not have committed any illegal act, otherwise, the claim request can be declined and it could backfire as well. The insured person should not be found to be driving a bike under the influence of drug or alcohol or while doing any stunts, or must not be caught riding a bike without a valid driving licence at the time of the accident. In such cases, the bike insurance company will reject a claim or even can terminate the policy.

5. Commercial Usage

When it comes to two-wheeler insurance policies, there are separate plans available for private two-wheelers and commercial vehicles. Therefore, a private two-wheeler vehicle must not be utilised for commercial purposes. If a private scooter or bike is found to get damaged in an accident or mishap, while it was used as a commercial vehicle, the bike insurance provider will reject the claim request right away.

6. Delay in Raising Claim Request

It is advised to raise the request for claim settlement soon after the accident, theft, or any mishap. However, the deadline to make the claim request, before which they expect the claim to be initiated, may vary from insurer to insurer. For instance, if you make the claim request after one month after its theft or accident, the insurance providers may reject your request for claim citing delay in raising it.

7. Modifications in Two-Wheelers

Many bike owners modify their bikes or scooters to such extent, which sometimes even make it difficult to recognise and trace the vehicle. However, if someone has made modifications in his or her vehicle, it is required to inform the insurance provider about the same as several modifications can increase the premium of the bike insurance. Hence, insurance companies can reject a claim, if it is raised for a modified two-wheeler about which the insurer was not informed earlier.

Take Away

Owning an insurance policy is not enough to get the compensation for your expenses related to a bike or scooter incurred due to an accident or mishap. Policyholders should go through their policy documents thoroughly to understand its claim request process and know its exclusions. To ease this process, we have come up with some general reasons that can make your claim get rejected. We hope going through the above-mentioned points will help you follow the right ways to prevent your bike insurance claim rejections.

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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.

Add-on Covers For Your Bike Insurance Policy

  • Zero Depreciation

    Like other assets, the value of your two wheeler also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.

  • Invoice Protection

    In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.

  • NCB Cover

    No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.

  • Engine Protection Cover

    The damages incurred by the engine of the two wheeler are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone 2 wheeler insurance policy can save you from these expenses.

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