Should I Raise Claims for Scratches in Bike Insurance?
Yes, you can raise your bike insurance claim for scratches but make sure you have a comprehensive bike insurance policy. Ideally, you should try to keep your bike free from dents and damage. But, it is unavoidable to keep it clean and shiny all the time.
But is it worth claiming insurance for some minor scratches? Well, the extent of damage to your bike will decide whether you should raise the claims because it impacts your No Claim Bonus (NCB) discount.
Why Should You Not Raise Claims for Minor Scratches?
When you purchase a comprehensive bike insurance policy, you get various risks covered, including the cost of damages due to an accident, natural or man-made disasters, loss covered for theft, etc. If you do not raise a claim for minor damages in your bike insurance policy, you will enjoy the following benefits-
No Claim Bonus
NCB is a discount offered by the insurance company for not raising a single claim in the policy tenure. If you raise a claim, your discount percentage will drop to zero, and the NCB discount cycle will reset.
If you raise a claim for small damages or scratches, you will realize that this has caused more financial losses than the repairing cost at the time of renewal. Thus, you must understand that you should always try to raise claims for any major repair or theft.
However, you can also buy NCB protection cover to enjoy the benefits of NCB discount even if you raise a claim. Obtaining an NCB protection cover is one of the significant purchases that will help you even if you file claims for scratches or minor damages. It costs more than 5-10% of the standard bike insurance policy but keeps the NCB intact even though you raise a single claim. Moreover, NCB protection cover is recommended for those who own expensive bikes or superbikes as the cost of repairing minor scratches is certainly very high and might create financial distress.
You can also refer to the below table to understand how the amount of bonus keeps on increasing for not raising a claim each year-
Number of Claim Free Years Percentage of NCB Discount 1 claim-free year 20 % 2 consecutive claim-free years 25% 3 consecutive claim-free years 35% 4 consecutive claim-free years 45% 5 consecutive claim-free years 50%
When you do not raise a claim for every minor damage, the insurance company offers a lower premium. This is because whenever you file a claim for the bike damages, the insurance premium rises significantly.
When I Should Raise Bike Insurance Claims?
There is no such limit on raising claims in your bike insurance policy. You can raise multiple claims within a policy tenure. However, it will affect your other-related benefits like NCB.
It is advised not to file the claims under your bike insurance policy when the compensation amount of the NCB discount is more than the damage repair expenses. Also, you should not apply for the claims when the repair bill amount is less than deductibles. Another case is when the third party is liable to pay for the damages that occurred during the accident, you should never brag to pay by yourself and take the benefit of this.
It is always a good idea to invest in the right bike insurance policy as it will financially protect you in case of major damages. However, it is not recommended to file a claim when your bike gets scratched or suffers minor dents. You can refer to the above paragraphs to understand when you should apply for the claims under your bike insurance policy.
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