Acquiring insurance differs from purchasing other financial goods and services in a few ways. The intangible character of the service is the primary reason for this distinction. A promise is what insurance is. After paying the insurance payment, you do not receive anything concrete other than the policy paper.
What are the reasons why a bike insurance claim get rejected
Many people are skeptical of insurance as a result of this. The main reason for this aversion to insurance is a lack of knowledge. When a policyholder’s bike insurance claim is denied, one of the main reasons they become disheartened, if not outraged, is because they are uninformed of the policy’s features.
What they don’t realize is that their claim was denied for a reason. Ill-informed policyholders vented their frustrations on social media, fueled by the fear of being duped. This adds to the uncertainty, as more individuals regard insurance as a defective notion rather than a financial safety net in the event of unforeseen events. As a result, it is advised to make an educated selection when purchasing any type of insurance.
#1. Policy lapse
Read on if you’re curious about why insurance companies deny claims. The following tips will assist you in raising your awareness quotient in order to prevent unpleasant surprises during claim settlement.
#2. Riding without a valid driver’s license
If it is discovered that you were riding the bike without a valid driver’s license at the time of the accident, your bike insurance carrier may refuse to accept your claim.
#3. No coverage
If you just have a Third-party Liability insurance, you won’t be able to make a claim for ‘Own Damages.’ According to the policy’s terms and conditions, your claim will be denied.
#4. Riding while drunk
It’s never a good idea to drink beer and ride a bike at the same time. Accidents that occur in this situation can be fatal. Drunk riding is frequently listed in a bike insurance policy’s list of exclusions. A claim involving intoxicated riding will be denied by your bike insurance carrier.
#5. Fraudulent claims
For policyholders, insurance is not a money-making enterprise. Its advantages should not be abused by filing false claims. During the claim settlement process, insurance firms perform extensive research. If it is discovered that a claim was filed with the purpose to defraud, the responsible policyholder may face legal action as well.
#6. Delay in filing a claim request
It is recommended that you submit a claim request as soon as possible. Varying insurers have different time frames in which they anticipate the claim to be filed. For example, if you file a claim one month after the accident, insurance companies are likely to deny it due to the delay in filing the claim. This is because, in circumstances where a First Information Report (FIR) is necessary, lost time might be utilized to plant or falsify evidence.
#7. Non-transfer of ownership
If you buy a used bike, be sure that the previous owner’s insurance coverage is transferred to your name. If you don’t do so, you won’t have a policy in your name. And if you don’t have a policy, you won’t be able to file a claim.
Some bike riders make extensive modifications to their motorcycles, making it impossible to trace them back to their original model. If you prefer to customize your bike, make sure to tell your insurance company about it. Certain adjustments might help you save money on your motorcycle insurance. As a result, insurers may deny a claim for a modified bike if the modifications were not disclosed prior to the accident.
#9. Commercial usage
Commercial usage of a personal two-wheeler is prohibited. Commercial vehicles are covered by a separate policy. As a result, if a personal bike is destroyed while being utilized as a business vehicle, the insurance company will deny the claim.
#10. Illegal usage
If it is discovered that the insured two-wheeler was damaged as a result of being used for illicit reasons, such as bike racing, insurance companies will deny claims.
Documents That is Necessary to Prevent from Your Bike Insurance Claims Get Rejected
The specific documentation needed to file a bike insurance claim will vary depending on the conditions at the time of the accident. Here’s a quick rundown of the documentation you’ll need to file a claim.
- Bike’s Registration Certificate (RC)
- Driver’s License
- Policy of Insurance
- FIR Report