Why Third-Party Bike Insurance Claims Get Rejected?

What is a Third-Party Bike Insurance Claim?

A third-party bike insurance claim is a formal claim request made by the policyholder to the insurer to compensate for damages or injuries caused to a third party due to an accident involving their bike.

Unlike a comprehensive bike insurance policy, a 3-party bike insurance policy does not cover your own bike or damages, so insurers strictly follow rules before processing claims.

8 Common Reasons Why Third-Party Bike Insurance Claims Are Rejected

The following reasons describe why 3-party bike insurance claims are rejected by insurers in India:

1. Invalid or Expired Bike Insurance Policy

   If your bike insurance policy has expired on the accident date, the insurer is not legally obligated to settle the claim. Even a one-day lapse can lead to claim rejection. That is why you should always renew your policy before the expiry date. If you have purchased two wheeler insurance online from Policybazaar.com, you will receive online renewal reminders on time to prevent policy lapses.

2. Riding Without a License or Drunk Driving Case

   Other reasons for claim rejection are if the rider does not hold a valid driving license or was driving under the influence of alcohol or drugs. This is also counted as a standard exclusion in a third-party bike insurance policy.

3. Delay in Informing the Insurer

   Typically, bike insurance companies give a timeline of 24-48 hours for accident intimation. Any delays can complicate the investigation process and raise doubts, which may lead to outright rejection. Hence, report the accident immediately and share accurate details with your insurer.

4. False, Misleading, and Incorrect Information

   Providing incorrect or exaggerated information means straightforward claim rejection. Some of the examples are: wrong accident location, fabricated story, fake witness, inflated repair estimates, etc. Therefore, you must be honest while providing the information and a police FIR (if required).

5. Invalid or Missing Third-Party Proof

   You must provide a valid & complete third-party proof, such as a FIR or police report, evidence of injury, death, or property damage, legal documentation of Motor Accident Claims Tribunal (MACT), etc. Submitting incomplete documentation becomes one of the most common reasons for claim rejection.

6. Non-Compliance with Legal Procedures

   Attempting to settle a claim directly with the third party without involving the insurer or MACT can result in rejection. For a successful attempt, all third-party claims must follow the legal procedure determined by Indian law.

7. Using the Two-Wheeler for Uninsured Purposes

   The insurer may reject the claim if the bike is used for commercial or racing purposes, carrying passengers more than the capacity, using it for any illegal purposes, etc. All these circumstances are counted as exclusions, so check them before raising claims.

8. Hit-and-Run Accidents Without Reporting

   Failing to report a hit-and-run accident or fleeing the scene can result in claim denial. Insurers require cooperation and proper evidence to validate such claims.

9. Damages to the Own Vehicle

   All types of damages caused to the own vehicle, such as accidental damage, loss due to theft, damage caused by natural or man-made calamities, etc., are not covered under a third-party bike insurance policy.

How to Avoid Third-Party Bike Insurance Claim Rejection?

Are you also afraid of getting third-party bike insurance claims rejected? Do not worry, here are a few tips that you can incorporate to avoid claim rejection:

• Keep your policy active and updated to prevent bike insurance policy lapses.
• Ride responsibly and legally by following traffic rules and avoiding riding under the influence of intoxicating substances.
• Report accidents immediately or within the given timeline by the insurer.
• Submit complete documentation, such as FIR, medical reports, repair bills, etc.
• Cooperate with the insurer by providing accurate information and assisting in investigations. 

Key Takeaways from Third-Party Bike Insurance Claims Rejection

FAQs – Reasons for Third-Party Bike Insurance Claim Rejection