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Bike Insurance Claim Settlement - A Complete Guide

By Vikas Chandra Das
21 July 2022, 11:46 AM

In case your bike meets with an accident and suffers some damage as a result, it could cost you a fortune to repair your vehicle. This is where your two-wheeler insurance coverage kicks in. 

The kind of claim to be filed will depend on the situation at hand; if a third party incurs damages during the accident and you are at fault, the respective party will file the claim against your insurance policy. To cover the costs of repairing your own vehicle, you must file a claim under comprehensive insurance, and the onus of seeing the claim through falls on you.

Types of Claim Settlement

There are two kinds of bike accident insurance claims: cashless and reimbursement. 

Cashless Bike Insurance Claims

Your bike insurance provider will have a list of garages empanelled or associated with it. If you take your bike to one of these garages following an accident, you can avail of a cash-free experience, with the entire cost borne by your insurer directly.

Most major insurers will have ties with garages across the country, so you won’t have to hunt for the right service centre. You might, however, have to pay the deductible, which is often a certain percentage of the overall repair costs, depending on the policy terms. By opting for higher deductibles, you can get lower premiums but could end up paying more for repairs.

Reimbursement Bike Insurance Claim 

If you choose to take your bike to a garage not associated with your insurance provider, you will need to file for reimbursement. Once the bike has been repaired and the bill settled, you can take the receipts and invoices to file for a reimbursement claim settlement.

After that, the insurer will verify the documents and settle the claim by paying you the amount after deducting the voluntary and other compulsory deductibles. The advantage here is that you get to choose the garage of your choice.

Read more - Here are the Answers to All Your Two Wheeler Insurance Claims Queries

Documents Required for Bike Insurance Claims

  1. Duly filled and signed insurance claim form. This includes all the pertinent details of the accident, such as the date, time, damage incurred, injuries, and the driver’s information.
  2. Copy of the driver's licence.
  3. Copy of vehicle registration.
  4. Copy of the policy document.
  5. Copy of FIR (In case of accident & theft).
  6. Subrogation letter.
  7. All original bills and proof of payment (for reimbursement claims).
  8. Original repair invoice from the authorised garage (for cashless claims).
  9. No-trace report issued by the police (in case of theft).
  10. Theft declaration from RTO (in case of theft).
  11. All sets of keys (in case of theft).

Claim Settlement Procedure

  1. The first step is to inform the insurance company within the time period mentioned in your policy document.
  2. It is also important to file an FIR at the nearest police station in case of accidents and theft.
  3. The insurance provider will send a surveyor to assess and report the damages and verify the estimated repair cost.
  4. For a cashless claim, take your bike to a garage associated with your insurance provider.
  5. Once the repair is complete, you must raise a claim and submit all the necessary documents.
  6. After the insurer verifies all your documents, you will need to pay for the voluntary and compulsory deductibles.
  7. The insurer will settle the bill with the garage to complete the cashless claim process.
  8. If you want to take your bike to a garage of your choice, you will need to submit all the documents as well as the original payment slips, and the insurance company will settle the amount post verification.
  9. If you file a third-party claim, the insurer will forward the claim request to the Motor Insurance Crime Tribunal Court for the verdict. The court will review the case and decide the claim amount. The insurer will then need to settle the amount as decided.

Reasons for Claim Rejection

Sometimes, the insurance company will reject your claim and refuse to pay the amount. Here are some of the reasons why this might occur:

  1. The vehicle driver did not have a valid licence at the time of the accident.
  2. Your policy had expired before the incident, and you failed to renew it on time.
  3. The information furnished on the claim form is false or incorrect.
  4. If the driver of the vehicle was drunk or under the influence of drugs at the time of the accident.
  5. The vehicle was being used for illegal activities at the time of the accident.
  6. If it is found that your personal vehicle was being used for commercial purposes.
  7. The accident was found to be a deliberate act.
  8. The accident occurred due to the driver's gross negligence.
  9. If the repairs were done without intimating the insurance provider about the accident beforehand.

Read more - Top 7 Facts About Bike Insurance Claim Rejection That You Must Know


In today's digital age, tech-enabled insurance service providers are making the process of claims settlements increasingly straightforward. Given the stiff competition in this segment, it is in the insurer’s best interest to provide you with a seamless, hassle-free service without running from pillar to post like yesteryears.

The guidelines and steps mentioned above contain all you require to settle your claims without any hurdles.

Read more - Top 10 Reasons for Bike Insurance Claim Rejections


1. Is the claim settlement ratio the only criteria to consider before selecting a bike insurance policy?

The claim settlement ratio of the insurance company determines its efficiency in settling your bike insurance claims. But you also need to evaluate your coverage, premium, availability of add-ons and several other features before choosing the plan.

2. How many cases are allowed in bike insurance?

Insurers typically cover two claims - cashless and reimbursement.

3. When can a claim get rejected?

A claim can get rejected when the information on the form is found to be incorrect, the driver was drunk or without a valid driving license, or if the insurance policy has lapsed, among other scenarios. 

4. Should you claim bike insurance for minor scratches?

You can make insurance claims for minor scratches. But if you could avoid doing so, you could earn discounts on your premiums by the time renewal comes. Discounts can be up to 20% for the first claim-free policy year. If you don't claim for another four successive policy years, the discount count will go up to 50%. However, discounts will apply to the own damage premium component only. So, you can pay for minor scratches that may not cost you much and bag attractive premium discounts.e damage policy. 

5. Is an FIR required for a bike insurance claim?

In case of accidents, or theft, you must first inform your insurance provider regarding the incident before filing an FIR at the nearest police station.


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