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Tired of Insurance Claims Being Rejected? Us Too! Top Reasons to Watch Out For.

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Published on May 26, 2021. EST READ TIME: 3 minutes

No one wants to think of the unthinkable but imagine this.

You recently bought a superbike and are out on a cruise when, unfortunately, you get involved in an accident. Your superbike is severely damaged, and you know the expenses are going to be monumental. However, you take for repairs to the authorized garage, and you get to know that your insurance company denies your claim. You are confused and are unable to understand why your insurer rejected your plea.

The insurance company can deny a two-wheeler claim if the policyholder does not fulfill certain obligations. Before your next bike insurance claim rejected leaves you dejected or even furious, let’s understand the primary reasons based on which the insurance company rejects claims.

Reason #1: Expired Policy: If your bike insurance has already expired and you make a claim request, it would get rejected. The policy provides protection only during the policy tenure. Therefore, we suggest renewing your policy before it expires so that you can benefit from the policy coverage.

Reason #2: Damage not covered in the policy: If you make a claim request without reading the fine print, your claim may be rejected. For instance, under a THIRD-PARTY BIKE INSURANCE COVER, your claim for your own damages will not be approved. Similarly, if you have purchased a COMPREHENSIVE BIKE INSURANCE POLICY without add-ons, some expenses may not be covered.

Reason #3: Delay in filing claims: Insurance companies have a cut-off time during which a claim should be raised. If you miss the deadline for initiating the claim request, the insurer has the right to reject it. So, inform your insurer about the incident as soon as possible.

Reason #4: False or fraudulent claims: Bike insurance provides financial protection in case of an emergency. However, some policyholders try to misuse this by providing false information and fake bills to get more coverage. The insurance provider conducts an in-depth investigation to confirm the authenticity of the claim, and if it finds out to be a false claim, it would be denied. The policyholder may also face legal measures.

Reason #5: Misinterpretation of facts: While filing a claim, you should provide correct information about the incident along with the details of the damage. If the insurer finds any mismatch or foul play in your claim, it will be rejected.

Reason #6: Involvement in illegal acts: If your two-wheeler is involved in an accident, it is important that you are not involved in any unlawful act during the accident. For example, if you are found guilty of drunken driving, triple riding, stunt driving, or riding without a valid license, your policy claim will be rejected, and your policy will be immediately terminated. If you are not riding the vehicle but someone else who is guilty of the above acts, your policy claim will be rejected.

Reason #7: Faulty vehicle or faulty parts: If the insurance company finds that your vehicle was not in good condition and had faulty parts at the time of the accident, it can reject your claim. Therefore, it is important to get your vehicle serviced at regular intervals as specified by the manufacturer.

Reason #8: Modifications in the bike: Some bike riders like to customize their bike to enhance the looks and values. In these cases, it is important to inform the insurer as certain modifications can increase the premium. There is a possibility that your claim may get rejected if it is filed against a modified bike without notifying the insurer.

Reason #9: Invalid driving license: People often lend their two-wheelers to friends or family members. Insurance companies have got this covered, too, as you are allowed to nominate other riders at the time of policy purchase. Your claim will be accepted if the vehicle is being driven either by you or by the nominee with a valid driving license. In other cases, it won’t be accepted. Therefore, be careful of who you are lending your vehicle to.

Reason #10: Insurance transfer is incomplete: If you have purchased a two-wheeler from another person, the insurance must be transferred to you within 15 days of the transfer of ownership. If this procedure has not been completed and your vehicle meets with an accident, your claim would be rejected by the insurance provider.

Reason #11: Commercial usage of the bike: A private two-wheeler should not be repurposed for commercial uses. For such vehicles, there is a separate policy under which your bike should be covered. Thus, if your private bike gets damaged while used for commercial purpose, your insurer will not accept the claim request.

Documents required for raising a bike insurance claim:

The exact documents required while raising a claim depends on the circumstances. However, no matter the damage, these four documents remain a must while raising a claim.

• Bike’s RC or Registration Certificate

• Driving Licence

• Insurance Policy

• FIR Report

Conclusion

It is compulsory to have a bike insurance policy. Similar to bike purchase, buying two-wheeler insurance requires consideration of many factors. To ensure hassle-free claim settlement, you need to choose a plan that offers a wide range of cover at low premiums. Wide coverage means that there should be more inclusions and lesser exclusion. Also, you must go through the policy documents carefully to avoid confusion.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by:

Mukesh Kumar | Motor Insurance Expert | 36+ years of experience in insurance industry

A veteran in the insurance industry, Mukesh Kumar has the expertise of handling various functions like Business Development, Underwriting, Claims, Human Resources, Quality Management and Marketing. With rich knowledge of the industry, he loves to share his views on topics of insurance sector and takes special interest in educating people on advantages of having insurance

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Few Other Articles:

• Top reasons for two-wheeler insurance claim rejection

• Why your two-wheeler insurance claims can get rejected

• Two-wheeler insurance claims – Your ultimate guide to own damage claim settlement

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