Why Your Two-Wheeler Insurance Claim May Be Rejected

It takes a fortune to acquire a two-wheeler in the present day. Therefore, we must always make sure that it is covered by insurance. Although having third-party liability coverage for your motorbike is required by law, having full coverage in the event of an accident, theft, or other loss is highly recommended. This bike insurance policy’s premium is more than average because of its comprehensive coverage.

You can file a claim on your policy either after the damage has occurred and you want your insurer to pay the bill for the repair or after you have already paid the bill and want your insurer to reimburse you. In any case, your insurance claim will be denied. In addition, policyholders can pay for any necessary repairs out of pocket and collect a no-claim bonus at renewal without incurring any premium increases or penalties.

Therefore, the following are a few claims-rejection criteria:

First, if the insured bike was involved in an accident and was damaged, the insured can only claim bike insurance if the driver’s licence was valid at the time of the accident, as required by the Motor Vehicle Act.

The claim will be rejected if the driver operates a geared vehicle while just holding a Light Motor Vehicle (LMV) licence or a lapsed LMV licence. Therefore, one must possess a valid driver’s licence appropriate for the vehicle being operated.*

Second, getting behind the wheel is illegal while inebriated by alcohol or drugs. If the insured motorcyclist was operating the bike while under the influence of alcohol or drugs, and the collision resulted in damage to either party’s property or bodily injury to a third party, the insurance company would be justified in promptly rejecting the claim. The insured person can also face criminal charges.*

Third, you don’t tell your insurer about an accident, theft, third-party damage, etc., right away. In that case, they may not pay out on your claim or may conduct an inquiry into the circumstances surrounding your claim, as stated in your policy. If the policyholder informs the insurer promptly of a problem, the insurer can provide the necessary aid. *

Fourth, Incorrect No-Claim Bonus. An insurer may provide a bonus to a policyholder who has yet to file an insurance claim and has maintained a safe driving record. Regarding percentages, NCB ranges from 20% to 50%. When you renew bike insurance, the insured must provide an exact valuation of the vehicle and any relevant policy and claims histories.*

The insurer will verify all policyholder details before settling on a premium. The insurance company will promptly deny claims for NCB if the applicant has provided false information about past claims, which may also affect the rate.*

As evidenced by IRDA statistics, most insurers reject the claim for a good cause, and convincing the general public regarding this can be challenging. Only some claims will be accepted by complying with the criteria above, even if you choose the bike insurance provider with the higher Claim Settlement Ratio. * #

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* Standard T&C Apply

# Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Post Author: Callie Josue