Bike insurance is usually purchased to meet legal requirements and secure financial help in case of accidents. Insurers are often accused of denying bike insurance claims. However, most claims are rejected because policyholders are uninformed of policy restrictions and exclusions. Let's look at the top reasons why an insurance claim may get rejected.
Reasons for Rejection of Insurance Claims
Two-wheeler insurance claims are denied mostly on grounds of non-compliance with the norms. The policyholders must fulfill specific terms and conditions to avoid complications when filing claims. The following are the most prevalent reasons why insurance companies deny two-wheeler insurance claims to the policyholders.
1. Misrepresentation of Information in the Claim Form
When purchasing an insurance policy, be as specific as possible with the information you provide to the insurance provider, as this will reduce the likelihood of claim rejection.
In the case of an accident, you must notify the insurance company as soon as possible and accurately describe the incident and the circumstances. If you misrepresent or miss out on any minor details relating to the accident, it could lead to the insurance company rejecting the claim you asked for.
For a hassle-free bike insurance claim, it is recommended that you take photographs of the damage suffered by your vehicle and speak to the witnesses in case of serious accidents. But don't move out to the garage as yet. Wait for the surveyor to come and inspect your vehicle and the ones surrounding it.
2. Making False Claims
Insurance is not a money-making scheme for policyholders; rather, it safeguards you from expenses in the event of an accident. Your bike insurance policy's goal is to cover you financially in the case of an unfortunate incident. And it shouldn't be misused for personal gain.
Insurance firms are becoming more cautious given the rise in false claims. They perform thorough investigations before resolving claims to guarantee that the request is legitimate. If a policyholder submits a false claim, they will risk legal sanctions in addition to having their claim refused and their insurance terminated.
3. Illegal Activities
When filling out your bike insurance claim details, ensure no illegal activity caused your vehicle to be stolen or damaged. Riding your bike while drunk, riding without a valid registration certificate, overspeeding, dangerous riding, and other unlawful conduct may lead to claim rejection.
4. Delay in Filing Bike Insurance Claims
A crucial component is filing insurance claims as soon as possible and notify your insurer at the earliest instance. Every insurance company has a deadline for filing claims, which you need to meet to get compensated. If you file a claim later than the deadline, the insurance company will most certainly refuse to pay for the damages.
5. Commercial Use
You cannot get a claim if your bike sustains damage when used for commercial purposes. As a result, it is recommended that you choose an insurance policy based on your bike's intended use, whether personal or commercial.
6. Expired Policy
The insurance company will deny all claim requests if you no longer have an active policy. They only cover you for the period when your policy is active. So, renew your insurance plan before it expires to maintain bike insurance coverage and a hassle-free claim settlement process.
7. Driving without a License
It is illegal to ride a bike without a driving license in India. So, an insurance company may reject a claim if you’re not carrying your driver’s license while riding. If you lend your two-wheeler to someone else, ensure he/she has a valid driver's license else rejection is imminent!
Since you can nominate other riders when purchasing two-wheeler insurance, your claim will be granted if the vehicle's rider was a nominee with a valid license. On the other hand, some policies exclusively cover regular drivers, while others cover any licensed driver or named driver. Before filing a claim, double-check that your policy includes other drivers.
8. Modifications to the Bike
Many new motorcyclists and riding enthusiasts modify their rides to the point where it's difficult to trace the original model of the bike. Any alterations done to the vehicle without knowing the consequences will ultimately put such riders in trouble. If you change your bike’s specifications without telling your insurance carrier, you will be denied an insurance claim in the event of an accident or theft because the modifications were not revealed beforehand. So, inform your insurer about the changes you intend to make to your bike.
9. Non-transfer of Policy Ownership
Suppose a bike is sold to the new owner, and the registration has been initiated at the RTO. But the revisions at the insurance company are overlooked. In such situations, the prior owner's name would appear on the insurance policy. As a result, the insurance company may reject the bike claim because of a non-transferred policy.
10. Poor Maintenance Condition or Faulty Parts in the Bike
Your insurer may deny your claim if your two-wheeler is in poor condition and has concerns such as damaged tires or loose brakes. Keeping your vehicle in good condition is critical so that the claim settlement becomes no less than a cakewalk. Ensure your vehicle receives servicing and maintenance routinely. Insurance companies have denied claims for vehicles not serviced according to the manufacturer's service terms and conditions.
Keeping the factors mentioned above in mind, you can rest assured that your bike insurance claim goes through smoothly, letting you receive your compensation without delay. To ensure that your claim does not get rejected, abide by the procedures indicated above, such as carrying all of your documents, not riding when drunk, timely service, maintenance of your bike, etc. Always stay in touch with your insurer to get more details about the procedures for a successful claim.