Top reasons that lead to rejection of two-wheeler insurance claims – The Financial Express

Clipped from: https://www.financialexpress.com/money/top-reasons-that-lead-to-rejection-of-two-wheeler-insurance-claims/2453364/

Without the information of the inclusions and exclusions of the insurance policy, you as a policyholder can end up getting your claim rejected by the insurance companies.

motor insurance, auto insurance, bike, two wheeler insurance, Mistakes to avoid while buying motor insurance, renewing existing cover, third-party insurance, TPI, no-claim bonus, NCB,By paying the premium on time the insurance policy remains active and the insurer can process your claim smoothly.

A large number of policyholders who buy two-wheeler insurance think buying a policy will solve all their problems. However, industry experts say buying a policy is only half the work done. Policyholders should understand that there are various factors for a successful claim settlement.

Rakesh Goyal, Director, Probus Insurance, says, “Policyholders should go through their policy documents thoroughly to understand the claim request process and know its exclusions. It is important to understand the aspects of a two-wheeler insurance policy that would compensate policyholders’ expenses in case of any mishap.”

Without the information of the inclusions and exclusions of the insurance policy, you as a policyholder can end up getting your claim rejected by the insurance companies.

Many times, Goyal says, “the two-wheeler insurance claim gets rejected due to several reasons and we all know claim rejections can be frustrating and disappointing. The reason for the rejection by two-wheeler insurance companies is mostly based on certain clauses.”

To make sure you are never in such a situation, here are some common reasons why insurance providers reject a two-wheeler insurance claim, and the right ways to prevent two-wheeler insurance claim rejections.

Driving with an invalid license and indulging in unlawful acts

Driving without a driver’s license or with an invalid license is one of the main reasons why your auto insurance claim can be rejected. These actions are illegal in India and hence the insurance company can reject the claim in these circumstances. 

Also, Goyal points out, “the insured person should not be found to be driving its two-wheeler under the influence of drug or alcohol or while doing any stunts at the time of the accident. In such cases, the bike insurance company will reject a claim or even can terminate the policy.”

Not paying the premiums and offering incorrect claims details 

By paying the premium on time the insurance policy remains active and the insurer can process your claim smoothly. If you don’t pay premiums on time and the policy lapses, then the insurance company can deny or reject your claim. It’s a good practice to pay the insurance premium on time to avoid any unnecessary rejections. In order to approve your claim, the premium has to be paid on or before the due date. 

Finally, Goyal says, “when someone files a claim, they need to make sure that they are providing accurate information about the occurrence. It is crucial to inform the insurance provider at the earliest and describe the accident without leaving out any facts.”

Modification of the bike without prior notice

There is a trend to customise the biked to make it look sleeker. However, Goyal explains, “before making such changes your insurance provider should be informed while making any modifications. As certain changes to your vehicle can lead to an increase in the premium rate, the insurer must be notified modifying your bike.” 

Hence, insurance companies can reject a claim, if it is raised for a modified two-wheeler about which the insurer was not informed earlier.

Not transferring the ownership

If a policyholder is purchasing a second-hand two-wheeler, the seller needs to transfer the ownership of the bike’s insurance plan on your name. In case the process is not done you cannot file any claims as the insurance policy is still under the previous owner’s name. Due to this, you would have to pay for any damage incurred by your bike in the event of a mishap. 

“Therefore one should make sure to get the policy transferred to his/her name before taking the two-wheeler out for a ride,” adds Goyal. 

Not informing insurer about the mishap

According to industry experts, this is one of the common mistakes that most policyholders commit. They get the car repaired on their own and then inform the insurance company for settlement of the claim. 

Goyal points out, “It’s hard for the insurance company to track the accident and repair, hence, it makes it difficult for the insurance company to assess the damage and approve the policyholder’s claim.”

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