Top 10 Reasons Behind Your Two-Wheeler Insurance Claim’s Rejection

Your two-wheeler insurance is meant to provide coverage for financial and legal issues under several situations. Still, there is a limit to the extent of coverage that an insurer can provide. Whether you file a claim for a third-party or own-damage loss, there can be possibilities that your insurer will not accept the claim. Ever wondered why that happens? The reason is that you may raise a claim without knowing about the exclusions of the policy. The exclusions of a policy are usually mentioned on the policy document, and they vary between different plans and among insurers. Read on to learn about the situations where your claim requests may get rejected by the insurance company and what you should do to prevent those reasons.

1.Riding under the influence of intoxicants

Riding a bike in a drunken state is prohibited by law. You will not receive any claim amount if you meet with an accident, get injured, or your bike gets damaged when driving under the influence of alcohol, drugs, or other intoxicating substances.

2.Bike getting damaged outside India

The bike insurance is valid within the geographical boundaries of India, and you will not get any compensation if an accident takes place beyond the borders. The policy is valid only across India, where your insurer has issued it.

3.Exclusions as per policy terms and conditions

If you file a claim for damage to your car under third-party liability insurance, your claim will get rejected. If you file a claim for damage to your car under third-party liability insurance, your claim will get rejected. A third-party liability policy would not cover personal accident cover for the owner-driver and own damage cover. The rules are the same for the current long-term two-wheeler policies. Similarly, an own damage cover will not cover third-party claims. You are violating the terms and conditions of the policy which you agreed on when you bought it. So, the insurer has the right to reject it.

4.Depreciation and normal wear and tear

With the regular use of a scooter and the ageing of the machine, mechanical breakdowns can occur in electrical parts, tires, and tubes. These are not related to accidents or unforeseen circumstances but are depreciation or consequential loss due to regular use. Insurers consider depreciation or normal wear and tear due to regular use as expected losses and do not cover them. So, any claim related to these would get rejected under OD policy.

5.Expired policy

The policy provides protection only during the policy tenure.  Failure to renew the policy on time will lead to its expiry. If you file a claim with an expired policy, it will get rejected. For uninterrupted coverage and hassle-free claim settlement, you should renew the policy before it expires.

6.Illegal riding

The insurer may turn down your claim if you are riding a bike without legal documents, such as a valid driving license. Always carry it without fail while riding, and never let any minor drive your two-wheeler. It is not legal, and the chances of accidents are high.

7.Adventure 

Under bike insurance or two-wheeler policies, the coverage is not applicable for damages caused due to events, such as bike races, adventure sports, speed tests, and reliability trials. Riding above the speed limits can be extremely risky, injuring other drivers and pedestrians beside you. It can result in physical injury, death, and severe damage to the vehicle. So, drive safely to protect yourself, your money, and your bike.

8.Fraud claims

If you make any fraud claim related to breakage or burglary, the insurance company will perform a thorough investigation. If any fraudulent activity is revealed, your claim will be rejected. The insurer may also cancel your policy in such a case and file a legal case against you. To avoid such situations, raise a claim only when it is genuine and submit proper proof such as FIR and required documents.

9.Driving with malicious intent

If you drive the scooter in an area that is flood-prone despite the availability of alternate routes or drive negligently, leading to damages, then the claims would not be approved.

10.Purpose of use

Based on their usage, two-wheelers have separate policies, such as commercial and personal vehicles. If your scooter is covered under a personal insurance policy and you get it damaged while using it for commercial purposes, such as deliveries, then your claim will get rejected.

You buy two-wheeler insurance as an agreement with your insurer to cover your financial losses during accidents or damage to the bike. The insurer is liable to pay if you raise a claim any time during the policy term. However, to make sure your claims get settled, you should go through the policy documents to know the exclusions. The insurer can reject your claim if you do not have an active policy or were riding in a drunken state. Also, make sure to submit the required documents and sufficient proof in case of an accident or bike theft.