Riding a Bike or a Two-Wheeler in India is more of a necessity than a luxury. It could be remote areas, villages, small towns, suburbs or metropolitans; you are unlikely to see a shortage of two-wheelers on our roads. You get to travel conveniently at a much faster pace on our narrow, congested and not so well maintained roads.
With growing awareness, many bike users realise the importance of bike insurance and slowly, but surely, more people are getting their two-wheelers insured. Buying a two-wheeler may not cost you as much as buying a car; however, it indeed requires a substantial amount. That makes your bike insurance all the more critical. It acts as a protector and provides you with a financial cover during accidents and damages.The real value of your bike insurance policy is realised the day you make a claim. That’s the day you put it to the test.
Are you aware that many of the top 10 two wheeler insurance companies in India have a claim settlement ratio between 73% to 93%? (Source: IRDA)
In simple terms, it means that not 100% of the claims received by two-wheeler insurance companies are approved and settled. It is usual for insurance companies to deny requests under certain situations.
We tend to blame insurance companies for cancelling our claim applications easily. That’s why it is crucial to read the insurance policy carefully before signing so that those future disappointments can be avoided.
Bike Insurance Claim Rejection: Reasons
It is one of the most common reasons. The following situations can lead to your bike insurance claim being rejected.
- The policyholder not providing up-to-date information regarding the rider and the vehicle insured.
- The insured person providing inaccurate information related to accident, damages caused to the car, the details of the incident and third-party injuries.
- Concealing the information or sharing false details to get a higher claim amount.
2. Fraudulent Claims:
Your claim could be rejected if you share inaccurate information or make a fraudulent claim merely to gain more insurance coverage than required and extract a higher amount. The insurance company could also initiate appropriate legal action against you.
3. Illegal Acts
Your bike insurance claim could be rejected if you are found involved in some unlawful acts such as
- Drunken Driving/Influence of drugs: If the rider is found guilty, the insurance policy could be terminated immediately. While driving, if the intoxicated bike owner/Driver meets with an accident, hurts himself, his bike or any third party, the insurance claim could be rejected.
- Expired/Invalid Driver’s License: As per the Motor Vehicle Act if the insured two-wheeler was involved in an accident, one can only claim insurance by showing a valid Driver’s License. If the license has expired, the insurance claim could be rejected.
4. Insurance Coverage Limitations:
Your bike insurance provides you with the cover only for the risks mentioned in the policy document. General wear and tear, electrical wire problems, tyre damages etc are not covered and are termed as exclusions in a standard policy unless specifically opted for in the policy by paying additional premium towards add-on coverage. The majority of costs are covered if you have a comprehensive bike insurance policy with add-ons.
5. Two Wheeler’s Faulty Condition / Parts:
Your bike insurance claim could be rejected if your two-wheeler is not in a working condition or it has issues such as faulty tiers and loose brakes. Driving such bike is negligence of the driving rules. Insurance company can reject your claim if your bike was not maintained properly and was not in a driving condition.
Majority of insurance companies reject claims for valid reasons. You may choose insurance companies with higher settlement ratios, however, as an informed bike rider, while taking an insurance policy or filing a claim, you should read all the policy documents carefully to ensure adherence to various regulations.
If you need more clarity on these clauses, you may contact your insurance provider or reach out to Quickinsure.