Steer clear: Common reasons your two-wheeler insurance claim might face rejection


11 Jan 2024

Navigating Bike Insurance Claims.

Two–wheeler insurance is one of the mandatory documents required for driving a two-wheeler on Indian roads. However, there are numerous misconceptions related to bike insurance due to a lack of knowledge related to it. Kotak General Insurance’s bike insurance policies have a detailed two-wheeler insurance wherein they lay the real facts about the claim denial reasons resulting in decreased claim refusal.

Here are some common reasons for bike insurance claim rejection:

Delay in filing of bike claim:

Filing of two-wheeler insurance claim has a stipulated time after the occurrence of an incident. A stipulated time window is specifically mentioned in the policy document therefore any delay beyond the particular time window can lead to denied insurance claims.

Lack of documentation:

Incomplete or missing documentation is one of the most common claim denial reasons. Documentation like a bike insurance policy, FIR (in case of an accident), driving license, or vehicle registration documents are crucial papers. The absence of these documents will act as a major insurance claim rejection factor.

Two-wheeler insurance policy lapse:

Non-renewal of the bike insurance or lapse in the policy due to non-payment of premium can lead to a claim being rejected. A lapsed policy leaves the bike and you uninsured.

Policy Violation:

One of the most common claim refusal issues is the violation of the terms and conditions of the bike insurance policy. Violations refer to driving a bike under the influence of alcohol or drugs, using the two-wheeler for illegal activities, or not adhering to the traffic rules will lead to claim rejection.

Pre-existing damage:

Any pre-existing damage or wear and tear to the vehicle before the purchase of the bike insurance will not be covered under the bike insurance policy. Therefore, if the owner files a claim for the pre-existing damage may lead to claim rejection.

Fraudulent claims:

One of the serious claim denial reasons are registration of fraudulent claims or misrepresentation or exaggeration of information. If insurers find that the claim was filed by providing false information then it will lead to claim rejection.

Excluded incidents:

The policy document mentions excluded incidents which are not covered under the two-wheeler insurance. For example, if the bike was involved in racing activity then any claims raised fall outside the scope of the insurance cover. Additionally, bikes used for participating in illegal activities or intentional damage to the vehicle will not be covered and any claims arising regarding the same shall not be covered.

Thus, above mentioned are common claim refusal issues that are the insurance claim rejection factors. Therefore, to mitigate the risk of claim rejection policyholders must understand the terms and conditions of the policy thoroughly. Additionally, adopting a proactive approach in the event of an incident will help in seamless claim processing and settlement.

The final note

In conclusion, a bike insurance policy is a safety net that protects the policyholder against the expenses incurred in the event of an incident to the bike. So, being aware of all the terms and conditions of the insurance policy, compliance with rules, and having proper documentation will help in a smoother claim processing experience.

Related blogs

Reasons why insurers may deny bike insurance claim request

Reasons Your Car Insurance Claim Can Be Rejected

Steps to file third party two-wheeler insurance claim

Delayed two-wheeler insurance claims: Effects and Consequences

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.