Reasons why insurers may deny bike insurance claim request

image

04 Aug 2023

Here are the 7 reasons for denial of bike insurance claim request. Check out Kotak General Insurance's bike insurance policy for more information.

Many bike owners in India prefer buying a comprehensive policy to protect their two-wheeler from accidental risks. Although you may wish that you never get involved in an accident, you may find yourself in a situation where you have to raise a claim. Typically, most insurance companies have a fairly simple process for filing a claim.

Even when you follow the process correctly, your claim can be rejected for many reasons. To ensure that you never find yourself in such an unpleasant situation, let us look at some of the common reasons why insurers reject bike insurance claims.

Not providing accurate details

When you file a bike insurance claim, you must provide accurate details in the application form. This includes both personal and bike-related information. It is crucial that you describe the accident without leaving any facts.

If you miss mentioning any specific details, or deliberately provide wrong details to get compensation from the insurer, you run a risk of getting your claim rejected. Hence, it is paramount that you provide correct information, and back it up with relevant evidence like photographs or video or statements of any witness to the accident.

Modifying the bike without informing the insurer

You may like to modify your bike to enhance its performance or improve its appearance. While there is nothing wrong with such modifications, you must inform your insurance company about it.

Certain changes to the bike, like replacing the original engine with a high capacity one can lead to increase in the premium. If you fail to inform about the modifications the insurer will reject your claim request.

Policy Coverage

If the damage caused to your bike is not covered in your policy plan, your claim request will be rejected. For example, if you claim for damages to your bike due to natural disaster under third party liability only bike insurance policy plan.

Using your two-wheeler for commercial purposes

As per IRDA (Insurance Regulatory and Development Authority) mandate, you cannot use your private two-wheeler for commercial purposes. For commercial vehicles there is a separate type of insurance. Therefore, if you get into an accident, and you are found guilty of using the bike for commercial gains, the insurer reserves the right to reject your claim request.

Policy is not renewed

No matter, if you have single-year bike insurance or a multi-year policy, you must renew it diligently on or before the due date to continue the coverage. If you fail to renew the policy, it will lapse. This means, you won’t have coverage against the unfortunate risks and the insurance company will outrightly reject the claim request for lapsed policy.

Delay in claim filing

When you get involved in an accident, you must immediately inform the insurer about it and initiate the claim within a specific period after the accident has occurred. Every insurer has a certain deadline. If you fail to comply with this, the insurer will refuse to compensate the losses you suffer.

Riding under the influence of alcohol

You must never ride a bike after you drink alcohol. It increases the risk of accidents and poses a serious threat to your life. All insurance companies in India include drunk driving in the permanent exclusions list. So, if you are found guilty of riding under the influence of alcohol, the insurer will reject your bike insurance claim request.

Noting the above points in mind, ensure that your cliam is never rejected and you are compensated for the damages without any hassles. Secondly, read the policy related documents thoroughly and comply with the claim process and terms and conditions for a smooth claim settlement process.


image
Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.