Many bike insurance policyholders get dejected and sometimes furious when the insurance company rejects their claim application. Fuelled by the thought of being cheated and ill-treated, they let out their angst on social media platforms. This plays a huge role in dissuading people from buying bike insurance. They feel that insurance is a flawed and fraudulent concept.
However, what people fail to understand is the reason why their insurance claim application was rejected. Well, the insurers never deliberately reject any claim. They have strict protocols and norms, and if you don’t follow them, chances are high that you won’t get compensation.
Let us look at the common reasons why a two-wheeler insurance claim gets rejected.
Whether you have a comprehensive policy or third-party bike insurance, your insurance company will not entertain your claim application if your policy has lapsed due to non-payment of premium or maturity.
So, before you submit the claim application, check if your bike insurance policy is active to avoid getting your request rejected. If it has lapsed, renew your bike insurance online immediately so that you get coverage and enjoy its benefits.
Remember, there are two types of bike insurance policies – comprehensive and third-party insurance. A comprehensive policy covers both third-party liabilities and own damages. As the name suggests, a third-party bike insurance plan offers coverage only against the damages caused to the third party’s vehicles.
So, if you have third-party bike insurance and file a claim for ‘own damage,’ the insurer will reject the request as per the policy’s terms and conditions.
Riding without licence
One of the most common reasons why insurance companies reject bike insurance claims is that the driver is found guilty of driving without a valid licence at the time of the accident. Also, you must know that riding without a valid licence is a punishable offence under Indian Motor Vehicle Act. It would attract a hefty fine. If you are a serial offender, you may even face imprisonment.
Driving in an inebriated state
Like riding without a valid driving licence, driving under the influence of alcohol or any other intoxicating substance comes under the permanent exclusions of a bike insurance policy. So, if you get involved in an accident while you are in an inebriated state, your insurer will definitely reject your claim.
Delay in filing the claim
When you get involved in a road accident, it is advisable to inform the insurer about it at the earliest and raise a claim within the prescribed time limit. Generally, the deadline for filing the claim is mentioned in the policy papers. Most insurers require the policyholder to file the claim within two to five days from the date of the accident. This is because a delay in filing the claim can cause distortion of evidence, especially in cases where FIR (first information report) is necessary.
So, you must be aware of the time limit for filing a claim and file the bike insurance claim within the period. If you delay filing your claim, the insurer will reject your request.
Now that you know the reasons why bike insurance claims get rejected, you would also understand that, more often than not, the policyholders are at fault. So, avoid these mistakes, follow the claim guidelines correctly, and you will surely get your claim approved.