You would have bought a 2 wheeler insurance policy to get your bike covered against risks. In case of an accident or theft, you can make an insurance claim to get your losses compensated. Most insurance claims are generally accepted but there are many cases of claims being rejected.
If your claim is not submitted as per process or if there are any deficiencies in your claim, it is likely to be rejected. Before you make a claim, you must be aware of the reasons why your claim may be rejected. The following are some of the top reasons for rejection of insurance claims.
1) Not having the right coverage
If you have third party insurance, then you cannot claim for damages to your own vehicle. Your policy will list out inclusions and exclusions. Driving when being drunk or not having a valid driving license at the time of the accident is not covered in your policy. You must know about all theinclusions and exclusions. This will help you avoid making claims that are out of coverage.
2) Policy not being valid
If you have forgotten to renew your insurance policy and an accident occurs, then your claim will be rejected. If the policy is not valid or has lapsed on the date of the accident/theft, then your claim will definitely be rejected. So ensure that you renew your policy on time.
3) Not following the process
Your claim must be submitted as per the defined process. It must be intimated on time. Any documentation needed (like FIR copy for theft) needs to be submitted. Not following the process can lead to your insurance claim being rejected.
4) Fraudulent claim
When you make a claim, the insurance company can investigate the incident. If they are of the opinion that your claim is fraudulent or fake, then your claim will be rejected. This is done to prevent people from making claims for accidents that never occurred or creating false claims to get money.
5) Misrepresenting facts
If your vehicle met with an accident, you need to present the facts of the accident correctly. If you misrepresent facts or hide any facts related to the accident, then your claim can be rejected.
6) Not transferring ownership
When you buy or sell a bike, you need to get the ownership transferred. NCB in bike insurance is also transferred with ownership. If the ownership is not transferred, then the insurance company can reject your claim.
7) Not informing of modifications
Any modifications either in your personal details or modifications done to the vehicle need to be informed to the insurer. If your address has changed, you should have informed it. If you have added any accessories to your bike, you need to inform the insurer. Not doing so can lead to your insurance claim being rejected.
Knowing the likely reasons for rejection of bike insurance claims is important. This will help you present your claim properly so it doesn’t get rejected.