Two wheeler insurance claim can get rejected due to multiple factors including negligence and modification of your bike.
When someone buys bike insurance, they do so to fulfil legal requirements and to obtain financial aid in the event of an accident or other unforeseen circumstances. For a successful claim settlement, insured persons must take care of a variety of insurance elements.
In order to do so, you must be familiar with the components of bike insurance coverage that would cover your expenses in the event of an accident. Insurance companies may deny a claim if the policyholder is unaware of the policy's contents and exclusions. Following are the main reasons why insurance companies reject claims for two-wheelers:
A bike insurance policy that has expired
Insurance companies will not accept any claim requests for expired bike insurance policies. They provide coverage just for the duration of the policy. Renew your insurance plan as soon as possible to ensure uninterrupted coverage and a hassle-free claim settlement process.
Fraudulent claims
As opposed to being a way to make money, the insurance provides financial support against unforeseen expenses. A false insurance claim must not be made using its services. Before resolving insurance claims, insurance providers perform extensive research to check the authenticity of the request. Policyholders found to have made fraudulent claims will be subject to legal penalties in addition to having their claim requests canceled.
Improper claim
There are many situations when policyholders fail to read their bike insurance policy documentation carefully and are ignorant of their coverage. Anyone with third-party bike insurance cannot make a claim for their own damages. You may also bear some costs if an insured person has a complete bike insurance policy but no add-on coverage. Because the claim was filed incorrectly, the insurance claim may be refused.
Unethical behaviour
An insurance provider will verify that the policyholder has not engaged in any illicit behavior before it can approve a bike insurance claim. At the time of the accident, the insured individual must not have been under the influence of drugs or alcohol, performing stunts, or riding a bike without a valid driving license. As a result, the bike insurance company will either deny a claim or possibly cancel the coverage in these circumstances.
Using private two wheeler for commercial purposes
An individually owned motorcycle cannot be used for business reasons. An insurance company will deny a claim if a private scooter or bike is destroyed in an accident while it is being utilized as a commercial vehicle.
Delay in making a claim request
It is recommended that you make a claim as quickly as possible following an accident, theft, or other misfortune. Insurance companies may have different deadlines by which they anticipate the claim to be initiated. The insurance company may deny your claim request if you submit it more than a month after the theft or accident.
Motorcycle and scooter modifications
Many motorcycle and scooter owners modify their vehicles to a great extent. Modifications made to a vehicle must be reported to the insurer, as several modifications might result in a higher insurance rate. A claim for a modified two-wheeler that the insurer was not previously notified about may be rejected by the insurer.
Misrepresentation of facts
Most claims are rejected by two-wheeler insurance companies because of misrepresentation of facts. Current insurance coverage for both the policyholder and the insured vehicle is required by the insurance provider. Your insurance claim could be rejected if the Insurance Company is not informed of all the specifics of the accident, the vehicle, and the rider. It is also important to keep your insurer informed of any changes that may affect your coverage prices.
When you lend your vehicle to someone else
Owners of two-wheelers often lend their vehicles to friends. Insurance companies will not pay claims if the rider does not have a valid driving license if you provide your two-wheeler to someone else. Two-wheeler insurance policies allow you to nominate other riders, therefore your claim will be granted if the rider of the vehicle was a nominee with a valid license.
Owning insurance coverage is not enough to seek compensation for expenditures spent due to an accident or disaster with your motorcycle. Policyholders should read their policy documents carefully to understand the process for filing a claim and to get familiar with any exclusions that may apply.
