Top Reasons for Bike Insurance Claim Rejection

Purchasing two-wheeler insurance is different from any other financial product or service. Since insurance is a promise to cover your damages, it requires awareness of several rules to adhere otherwise your claim request can get rejected. Many policyholders feel cheated when their claim request gets rejected as they fail to understand the legitimate reason behind it. Hence, you should have the knowledge of reasons as to how the bike inusrance claim settlement process functions to make an informed decision when it comes to purchasing a bike insurance plan. 

Top Reasons for Bike Insurance Claim Rejection

Here are some reasons why insurance companies reject claims. Go through these points to enhance your awareness quotient to prevent mistakes during claim settlement:

1. Policy Lapse

If your bike insurance policy gets lapsed, your insurance company will not entertain it. The insurance company is entitled to cover your bike only during the policy period. Therefore, you should renew your plan before its expiry date to stay covered and avoid any claim related trouble.

2. No Policy Coverage

You can request a claim for things covered under your bike insurance plan. You can not request a claim for your own damages with a third-party policy, otherwise, your claim request will be rejected right away. Hence, you should go through the policy document in detail before raising a claim.

3. Driving Without Licence

The insurance company covers the damage or loss, if the policyholder is responsible and follows the law, hence, your insurer can reject the claim request outrightly if you are found riding a bike or scooter without a valid driving licence during the accident.

4. Drunk Driving 

Since insurance company tends to deliver coverage for law-abiding policyholders only, hence, people who get involved in an accident while driving under the influence of alcohol can also get their claim rejected.

5. Fraudulent Claims

Insurance companies do not entertain fraudulent claims. To ensure the genuineness of a claim, they conduct thorough research while settling the claim. If the claim is found to be fake, the claim is rejected and the policyholder can even face legal charges.

6. Delay in Making Claim Request

The claim request should be raised as soon as possible after the accident or a mishap. Different insurance company offers different claim request deadlines and raising a claim after that period they can reject your bike insurance claim citing delay in raising it.

7. No Transfer of Ownership

If you have bought a second-hand two-wheeler, then you should get its bike’s insurance policy transferred from its last owner to your name. Failing to do so will mean no policy in your name which will cease the scope to raise a claim.

8. Modifications in Bike

Many bike riders modify their bikes, but for doing it they need to inform their insurer about the same. Since bike modifications can increase the bike insurance premium, hence, insurance companies can reject your claim for a modified bike, if modifications were not disclosed earlier.

9. Commercial Usage

A private bike being used for commercial purposes is considered illegal. When it comes to insurance, there is a separate insurance plan for commercial vehicles. So, if a private bike insurance claim is raised for any damage caused while using it as a commercial vehicle, it will be rejected.

10. Illegal Usage

The claim for bike insurance will be rejected if the insured bike is found to be damaged due to its involvement in any illegal activity or used for illegal purposes like bike racing. The insurance company has the right to not entertain the claim request for illegal usage of a two-wheeler.

To Conclude

Planning and precautions can make any process complete successfully. The same law applies to bike insurance claim settlement procedures, where you can save your claim request from getting rejected by avoiding some mistakes. Go through the list of reasons for the rejection of bike insurance claims to keep yourself away from them and avail of the bike insurance policy claim without any hassle by preventing it from rejection.

Also Read:

How To Get the Details of Bike Insurance By Registration Number?

How To Get A Duplicate Copy of New India Bike Insurance Documents?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.