Reasons a Two-Wheeler Insurance Claim gets Rejected

4 min read

Do you want to know about the common reasons why a bike insurance claim can get rejected. Read on to know all about claim rejection.

A Bike insurance is a cover that can be procured so that the insurer can meet the legal and financial requirements in the event of a bike accident. But just buying a policy would not be sufficient for getting the compensation if you do not proceed through the claim process successfully.  So for a bike insurance claim to be successful there are few factors that an insured must take note of.

Hence, every insurance policy owner should understand some important aspects related to two-wheeler insurance cover which protects them by paying the expenses in the event of an accident. These conditions are such that policy owners should know about them to get knowledge about the restrictions pertaining to their insurance policy which might get their claim rejected.

So, here in this blog, we are discussing the reasons for which a two-wheeler insurance claim can get rejected. Moreover, you will come to know about the mistakes that you are not supposed to make while claiming for a bike insurance compensation in case of an accident.

5 Reasons for a Two-Wheeler Insurance Claim to be Rejected

Below are some of the very common grounds on which a bike insurance claim can be rejected by auto companies, which an insured is supposed to keep in mind while filing a claim:

1. If the insurance coverage is not active anymore 

If your auto insurance policy has expired, in that case the insurer will reject any claim you request, even during the grace period. The insurance companies offer coverage only during the policy period. Thus, it is important for you to renew your auto insurance plan before it expires to continue enjoying two-wheeler insurance coverage on your bike and to be able to file claims. So, if you do not want a two wheeler insurance claim rejection, keep your vehicle insurance policy active all the time.

2. If your claim statement is fake or false 

You cannot use insurance to make money. It is not a money making option, rather it is a protection to save yourself from unforeseen expenses. Hence, you cannot take advantage of the various services or benefits of insurance by making false claims. Moreover, the insurance firms carry on ample detailed investigations on receiving a claim before they approve it to assure the authenticity of the request. If a fraudulent claim is filed by a policyholder, he/she can face strict legal action and their claim request also gets canceled.

3. No-Claim Bonus 

It is very important to read the offer document of an insurance, be it any insurance plan individual or family. Most people usually do not read the document word-to-word and thus they stay unaware of the inclusions and exclusions of a policy. An insured person with a third-party coverage cannot file any claim for the damages caused to their own vehicle. Further, if an insured has a comprehensive bike insurance, still they may have to bear some expenses from their pocket if he/she doesn’t have any add-on coverage. Thus, in such cases the insurance claims would be considered wrong and the insurance claim is rejected if the insured submit claim with false information.

4. Illegal Actions

For a claim to be approved by the insurance company it is also important that the bike insurance policy holder was not involved in any kind of illegal activities while riding the bike or while the mishap happened. In case of any involvement of the insured in illegal conduct, the claim request gets rejected. Thus, the insured person must ensure that he/she was not under the influence of alcohol or drugs at the time of the mishap. Also, the insured should not be involved in any dangerous stunts or he/she should not be riding the two-wheeler without a proper license and so on. In such cases, the bike insurer would refuse the bike claim and can even terminate the policy.

5. Using Insurance Plan for the purpose of profit

In bike insurance coverage, you can buy plans under two separate categories:

  • For individual/ personal two-wheelers
  • For corporate vehicles

Hence, you cannot use a personal bike for the purpose of your business as this is termed illegal. So, the two-wheeler insurance company might reject a claim if you use your private vehicle for a commercial purpose and it gets damaged in any accident. Thus, make sure not to use a private car for commercial purposes if you do not want a claim rejection.

Also Read: How to Claim Insurance for Bike Accident If Your Friend was Driving?

To Conclude

If you have an auto insurance, you must remember that just having insurance is not enough for getting reimbursement of expenses that you have incurred due to an accident involving your bike. It is essential that policyholders examine the policy documents carefully and know the process to submit claims. Moreover, they should also know about the exclusions that are applicable with their policy.

As you have already read about the possible reasons for an insurance claim to be refused. So you now know the mistakes that normally people make in case of claiming insurance reimbursements. The points above would give you an idea and make things easy for you to understand and not to repeat the mistakes to get your claim rejected.

Also Read: How to File Bike Insurance Claim

Just ensure that all the papers you submit are done after duly checking their authenticity and follow the process properly without making any of the above mentioned mistakes. This way, you can be sure of getting your bike insurance claim approved.

Also, you can check and compare different insurers to see if the rate of bike insurance claim percentage of an insurer is decent enough before buying the policy.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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