Common Reasons Your Two-Wheeler Insurance Claim Might Get Denied

Filing a two-wheeler insurance claim can be denied for various reasons, such as policy lapse, misrepresentation of information, or delays in filing claims. Non-compliance with terms, driving under the influence, or using the bike for illegal activities also lead to rejections. Claims may fail if there’s a lack of documentation, repairs without approval, or undisclosed past claims. Always follow policy terms, report incidents promptly, and ensure accurate information to avoid issues. Review your coverage to stay protected from unexpected exclusions.

Introduction

Vehicle insurance offers essential financial protection against unforeseen events like accidents and theft. With the right policy, you can ride with peace of mind. However, when filing a claim, certain missteps can lead to rejection. If you want to ensure your two-wheeler insurance claim gets approved, it’s crucial to know what might go wrong.

Reasons Your Claim Could Be Rejected

Filing a two-wheeler insurance claim may seem straightforward, but certain oversights can lead to rejection. Here are the key factors that could result in your claim being denied:

1. Policy Lapse

Your two-wheeler insurance policy remains valid only during its active period. If your policy has lapsed due to non-renewal and an accident occurs after your policy has expired, you won’t be eligible for compensation. Always renew your insurance before it expires to ensure continuous coverage. Many insurers even offer a grace period for renewal—use it wisely to avoid such issues.

2. Misrepresentation of Information

Providing incorrect or incomplete information during your policy purchase can be detrimental. Details like your bike’s model, registration number, and past accident history must be accurate. For example, overstating the condition of your vehicle or omitting critical details about modifications could lead to claim denial. Be honest when purchasing or renewing a policy, especially for comprehensive bike insurance, as these plans evaluate multiple factors.

3. Failure to File Claims Promptly

Delays in filing a claim can lead to rejection. Insurers specify a time frame—often within 24 to 48 hours—for reporting incidents. If you miss this deadline, they may consider your claim invalid. Always notify your insurer immediately after an accident or theft to keep your claim process smooth.

4. Non-Compliance with Terms and Conditions

Each insurance policy comes with a list of terms and conditions you must follow to be eligible for claims. If you violate these, your claim might be rejected. For example, using your personal bike for commercial purposes or riding without a valid license can disqualify your claim. Always read and understand your policy's terms to avoid surprises later.

5. Using the Bike for Illegal Activities

Engaging in activities such as racing or any illegal usage of your bike makes claims inadmissible. Insurance policies strictly exclude coverage for damages arising from such activities. Even minor violations, like riding in a restricted area without permission, could lead to claim rejection. Always adhere to traffic laws and use your bike responsibly.

6. Driving Under the Influence

Accidents caused while riding under the influence of alcohol or drugs fall under policy exclusions. Insurers view such instances as reckless behaviour and won’t cover the damages.

7. Failure to Transfer Ownership

Transferring the insurance policy into your name is essential if you purchase a second-hand bike. Claims are valid only if the policyholder’s name matches the owner’s details on the bike’s registration certificate. Neglecting this step renders the policy invalid for claims.

8. Unapproved Modifications

Modifications can make your bike unique but may also void your insurance. For instance, changing the exhaust system or adding high-performance parts without notifying your insurer can lead to claim rejection. Insurers assess risks based on the original specifications of your bike. If you plan any modifications, inform your insurer to update the policy accordingly.

9. Lack of Necessary Documentation

Incomplete documentation can halt the claim process. Essential documents include your policy, bike registration certificate, driving license, and, if applicable, an FIR. Failing to provide any of these can lead to claim rejection.

10. Using a Third-Party Liability Policy for Own Damages

If you only have a third-party liability policy, it will cover damages caused to others but not yours. Many riders mistakenly assume all policies cover personal damages, leading to denied claims. Opting for comprehensive bike insurance ensures you’re covered for personal losses as well.

11. Repairs Without Approval

Getting your bike repaired before notifying your insurer or without their approval can void your claim. Insurance companies often need to inspect the damages before repairs. Follow the prescribed process, which usually involves informing your insurer and taking the bike to an approved garage.

12. Pre-Existing Damage or Wear and Tear

Claims related to normal wear and tear or pre-existing damages are not covered under insurance policies. For example, worn-out tyres or mechanical breakdowns due to age are excluded. Regular maintenance and timely repairs can prevent such issues from being flagged during claims.

13. No Coverage for Excluded Events

Policies list exclusions, such as damages caused by natural disasters, if not explicitly covered. For instance, a standard two-wheeler insurance plan might not cover flood damage unless you’ve opted for an add-on. Review your policy thoroughly and add necessary riders to avoid uncovered risks.

14. Illegal Parking or Storage

If your bike was parked in an illegal area or stored in a way that violated regulations, claims for theft or damages during those instances might be denied. Insurers expect policyholders to take reasonable precautions to protect their vehicles. Always use secure and legal parking to minimise risks.

15. Exceeding Customised Policy Limits

Certain customisations, like enhanced coverage for specific parts, come with defined limits. If your claim exceeds these limits, the excess amount won’t be covered. For example, if you’ve opted for add-on coverage for your bike’s accessories but claim for damages beyond the covered value, insurers will reject the excess claim amount.

16. Non-Disclosure of Previous Claims

If you fail to disclose previous claims while renewing your policy, insurers might deny new claims. Since they use this information to assess your risk profile, always be transparent about your claim history to avoid complications during settlements.

Conclusion

Filing a claim for two-wheeler insurance requires diligence and adherence to the policy terms. Avoid mistakes like delayed claims, misrepresentation, or policy lapses to ensure smoother approval. Choose comprehensive bike insurance for broader protection, and always stay informed about your policy's terms to safeguard your financial future.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.