Owning a bike gives one complete liberty and convenience but brings the onus of protecting it by proper insurance. Bike insurance relieves the financial stress caused by accidents, theft, or damage. Many, however, face the jarring shock of a denied claim. Understanding why a claim is denied can prevent one from getting into such situations and ensure a smooth claims process.
This article will outline and bring to light the common reasons as to why bike insurance claims go in vain and also comes up with actionable insights into avoiding these pitfalls.
1. Incomplete or Incorrect Documentation
The most prominent cause of claim rejection happens due to incomplete or incorrect documents. Proper documents help validate your claim in return.
Key Documents Needed for a Claim:
- Bike Insurance Policy
- FIR in case of theft or accident
- Driving License
- Claim Form (completed and signed)
- Repair Bills and Invoices, if relevant
Solution: Prior to filing a claim, you need all the documents in order. Check for correctness on matters like policy number, registration of the bike, and personal details. The consequence of missing or wrong information is delay or even outright rejection.
2. Riding Without Valid License
If the rider does not hold a valid driving license at the time of the incident, the claim will be rejected immediately.
Why is it Important?
A driving license is proof that the rider is legally permitted to operate a two-wheeler. Riding without one is not only illegal but also voids your insurance claim.
Solution: Always carry a valid driving license while riding. Renew it well before the expiration date to avoid unnecessary complications.
3. Policy Expiry
Another major reason for claim rejection is when the policy has expired or lapsed.
Understanding Policy Lapse:
- If your bike insurance policy expires, you are no longer covered for damages, theft, or third-party liabilities.
- Claims made after the expiry date are automatically rejected.
Solution: Renew your two-wheeler insurance policy on time. Many insurers send reminders through SMS or emails, so keep an eye on these notifications. Opt for long-term bike insurance policies to reduce the risk of lapse.
4. Unauthorized Repairs
Getting your bike repaired without notifying the insurer or taking it to unauthorized garages can lead to claim rejection.
Why Does This Happen?
Tie-ups have been arranged with network garages where the cashless repair is duly approved. You get away with the vehicle repair without informing the insurer and deny your claim.
Solution:
- Report the incident to your insurer before taking the repair of the vehicle.
- Obtain repairs done at an authorized network garage from the one listed in your policy.
5. Delay in Claim Intimation
Most insurers have a time frame within which you must report the incident. Delaying claim intimation can lead to rejection.
What Happens in Delayed Claims?
- Insurers may question the validity of the claim.
- Evidence of damage or loss may become difficult to verify.
Solution: Inform your insurer immediately after an accident, theft, or damage. Most insurers offer toll-free numbers, websites, or mobile apps for easy claim reporting.
6. Negligence and Reckless Riding
If the damage happened because of negligence or reckless behaviour, the claim may be rejected.
Examples include:
- Riding under the influence of alcohol or drugs
- Over-speeding or violating traffic rules
- Participating in illegal racing
Solution: Always follow traffic rules and ride responsibly. Insurance providers do not cover damages caused due to unlawful or reckless acts.
7. Use of Vehicle Beyond Policy Coverage
Using your bike for purposes not covered under your insurance policy can also lead to claim rejection.
For instance:
- Using a private bike for commercial activities (e.g., deliveries)
- Unauthorized modifications to the vehicle
Solution: Be clear about the intended usage of the bike when purchasing the policy. If your bike is used commercially, consider a commercial vehicle insurance policy.
8. Failure to Follow Claim Process
Each insurance company has a specific claims process that needs to be followed. Failure to do so may lead to rejection.
Common Mistakes:
- Not informing the insurance company before repair
- Not lodging an FIR in case of theft
- Giving false or incomplete information
Solution: Know your insurer's claims process. Always read the policy terms carefully to know your responsibilities.
9. Pre-Existing Damages
Claims made for pre-existing damage to the bike will not be entertained.
Example: If your bike already has a dent or scratch, you cannot claim it as damage from a new accident.
Solution: Get your bike inspected during policy purchase and renewals. Any existing damage should be recorded clearly to avoid disputes during claims.
10. Non-Disclosure of Information
Hiding all important details like previous claims, modifications, or medical conditions may result in claim rejection.
Why Does It Matter?
Insurers evaluate the risk factor before issuing a policy. Providing false information or hiding information can nullify your policy.
Solution: Be honest while purchasing or renewing your policy. All information related to the vehicle and usage must be transparent.
Tips to Ensure Your Claim is Approved
To prevent disappointment, here are a few actionable tips:
- Read the Policy Document: Know what is included and excluded in your bike insurance along with the terms.
- Maintain Accurate Records: Keep all documents such as policy papers, receipts, and repair bills handy.
- Renew Your Policy on Time: Set reminders for policy renewal dates.
- Report Accidents Immediately: Never delay claim intimation.
- Ride Responsibly: Follow traffic rules and avoid risky behaviour.
Conclusion
Bike insurance claims might be rejected due to some specific reasons, most of which could be avoided with some care and responsible behaviour. The following discussion will help in understanding these common pitfalls while being transparent and following the process correctly to ensure an easy time when filing claims.
Protect your two-wheeler and ride stress-free by choosing the right insurance and following all guidelines diligently. If you haven't already secured a comprehensive bike insurance policy, check out two-wheeler insurance plans on Coverfox and safeguard your prized possession today.
By staying informed and proactive, you can ensure that your bike insurance policy works effectively when you need it the most.
